Athens News Agency: Daily News Bulletin in English, 97-02-18

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From: The Greek Press & Information Office, Ottawa Canada <grnewsca@sympatico.ca>

ATHENS NEWS AGENCY BULLETIN (No 1118), February 18, 1997

Greek Press & Information Office
Ottawa, Canada
E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[01] Greece confident of meeting Maastricht criteria

[02] FYROM aid

[03] Tsohatzopoulos discusses armament issues with German counterpart

[04] Interministerial committee on Greece's EU policy held

[05] EU Commissioner Wulf-Mathies to begin official visit here today

[06] Iranian Vice-President to visit Athens today

[07] Athens to host WEU security seminar

[08] Kranidiotis, van den Broek meeting centers on Cyprus

[09] Cyprus, Turkey's role in region discussed by Albright, Kinkel

[10] Athens willing to discuss deployment of multinational peacekeeping force on Cyprus

[11] Athens reiterates that Ankara has no say in Cyprus' EU accession

[12] Evert responds to criticism over his stance during Imia crisis

[13] Political developments on the agenda for PASOK's central committee

[14] Simitis meets with Skandalidis

[15] Museums remain closed due to strike

[16] Teachers vow to continue strikes

[17] Gov't says amendment on pension fund deposits won't be withdrawn

[18] ESHEA

[19] Tourism delegation leaves for Moscow tourist exhibition

[20] Working hours draft agreement unveiled

[21] Shopowners strike

[22] Northern Greek companies ready for bourse, study says

[23] ADEDY announces one-day strike

[24] Papantoniou predicts single-digit interest rates this year

[25] EBEA economic report notes bright spots in economy

[26] Industrialists call for free hand for mass dismissals

[27] EU assistance for SMEs announced

[28] FAGE bond issue

[29] Four people face trial over Motor Oil pollution

[01] Greece confident of meeting Maastricht criteria

Brussels, 18/02/1997(ANA - M. Spinthourakis)

Greece was represented by National Economy Minister Yiannos Papantoniou.

Almost all speakers stressed that the EU has entered a development track. But many of the national economy ministers, including Mr. Papantoniou, focused on three reservations of a general nature.

The first concerned the danger of wider recession than expected being created, since the coordinated effort by all member-states to decrease deficits is resulting in the curbing of demand at a European level.

The second reservation regards EMU and dangers entailed for fiscal markets by the unprecedented effort to merge 15 European currencies into one.

Finally, the third reservation expressed was of a political nature and was related to the reaction of public opinion in European countries to the problem of unemployment.

National delegations, including Athens', stressed that the "15" should take specific measures to strengthen employment through backing investment initiatives by small- and medium-size enterprises; promotion of inter-European networks and implementation of a more flexible monetary policy by member-states.

Addressing the session, Mr. Papantoniou outlined the positive performance of the Greek economy which, he said, was recognized by the European Commission in its recent economic report.

He said that from 14.4 per cent in 1993 the Greek public deficit will decrease to 4.2 per cent of GDP in 1997. Inflation from 12 per cent will drop to 4.5 per cent at the end of the year, while the country's growth rate, negative until recently, will reach 3.3 per cent of GDP at the end of the year, he noted.

Mr. Papantoniou said Greece expects to meet the terms and conditions set out in the Maastricht Treaty in 1998 for participation in the single currency, adding that in 1999 the country will claim its equal participation in economic and monetary union.

[02] FYROM aid

Brussels, 18/02/1997 (ANA)

Speaking to the press, Mr. Papantoniou said the Commission provided certain explanations on technical issues raised by certain delega-tions, including the Greek, during the last Council of Finance Ministers, but stressed that the disbursement of EU aid is linked to the signing of a co-operation agreement between the EU and FYROM. It is a term put forward by Greece and accepted by the remaining member-states.

Mr. Papantoniou said the decision taken by the Council yesterday was the first step towards the granting of EU aid to FYROM, stressing that a reconsideration of the issue is feasible at any moment and is not only linked to the "technical aspects" of the issue but to the political issue as well, namely the question of the course of negotiations on the issue of the state's name.

[03] Tsohatzopoulos discusses armament issues with German counterpart

Bonn, 18/02/1997 (ANA - P. Stangos)

During the discussion, a decision was taken to begin negotiations for a memorandum of understanding on armament issues to be signed within the year, concerning co-operation between the two defense ministries and between Greek and German companies.

The German side appeared interested in participating in Greece's armaments program, particularly with regards the modernization of a number of F-4 "Phantom" fighters by the DASA company and the provision of four submarines from the Howald shipyards.

The Greek side is also interested in the purchase of a number of previous-generation Leopard I tanks, which has ground to a halt as Bonn has imposed an informal embargo on their sale in areas where tensions have allegedly risen.

Discussions between Mr. Tsohatzopoulos and his German counterpart included the prospect of NATO expansion, with Russia's participation in a wider European security system being considered necessary by both Bonn and Athens.

Mr. Ruhe added that the improvement of "technical communication" with NATO headquarters in Brussels would help prevent crises in the alliance's Mediterranean regions and would aid in defusing any tension.

He also rejected any other form of involvement in tensions between Greece and Turkey and in the Cyprus issue, saying Germany is already "overloaded" with its participation in the international peace-keeping force in Bosnia.

Earlier yesterday, Mr. Tsohatzopoulos, in his capacity as member of PASOK's executive bureau, met with president of the German Social Democrats (SPD) Rudolf Sharping and president of the joint Greek-German parliamentary group Zingrid Skarpeli-Sperk.

[04] Interministerial committee on Greece's EU policy held

Athens, 18/02/1997 (ANA)

Mr. Papandreou noted the need for closer co-operation and more frequent contacts between ministries and called for the best possible preparation in view of the "third financial protocol."

A foreign ministry announcement later stated that Mr. Papandreou briefed participants at the meeting on EU enlargement and new regulations concerning member-states that do not conform with decisions of the European Court, as well as consequences stemming from violations of Community Law.

The meeting was attended by Merchant Marine Minister Stavros Soumakis, Aegean Minister Elizabeth Papazoi, Interior Under-secretary Lambros Papadimas, Development Under-secretary Anna Diamantopoulou, Agriculture Under-secretary Vassilis Geranidis and Transport Under-secretary Manolis Loukakis. National Economy Under-secretary Christos Pachtas briefed his colleagues on the course of the second Delors Package.

[05] EU Commissioner Wulf-Mathies to begin official visit here today

Brussels, 18/02/1997 (ANA - M. Savva)

During her stay in Athens, Ms Wulf-Mathies will hold talks with Prime Minister Costas Simitis, National Economy and Finance Minister Yiannos Papantoniou, Development Minister Vasso Papandreou, Environment, Town Planning and Public Works Minister Costas Laliotis and Transport and Communications Minister Haris Kastanidis.

According to European Commission sources, she is expected to call on the government to speed up its efforts to further improve awarding contracts in the public works sector. The same sources said Ms Wulf-Mathies believes that awarding terms should become more attractive for the private sector, primarily in cases of joint funding for major projects.

[06] Iranian Vice-President to visit Athens today

Teheran, 18/02/1997 (ANA/AFP)

According to IRNA, Iranian Foreign Undersecretary Mahmoud Vaezi said that Mr. Habibi's visit to Greece was aimed at "developing Iranian-Greek relations in all sectors". Mr. Vaezi said Mr. Habibi's talks in Athens would focus on political and economic issues and particularly the sale of Iranian oil to Greece.

[07] Athens to host WEU security seminar

Athens, 18/02/1997 (ANA)

[08] Kranidiotis, van den Broek meeting centers on Cyprus

Brussels, 18/02/1997 (ANA - G. Daratos)

The discussion centered on finding a solution to the Cyprus problem and various obstacles which must be overcome in order for this to be achieved as soon as possible.

Both agreed that a joint effort is required on the part of the European Union, the United States and the United Nations in order for a satisfactory solution to be found.

They also discussed the EU-Turkey Association Council meeting, scheduled for April 30, with Mr. van den Broek repeating that Athens must undertake all efforts in order for the Association Council to be held successfully, particularly following the assurance he (van den Broek) was given recently by Turkish Foreign Under-secretary Onur Oymen.

Mr. Oymen reportedly told Mr. van den Broek on Friday that his government will accept the contents of a decision by the EU foreign ministers last July 15, according to which Turkey must not use violence or threaten to use violence and to refer differences with Greece to the International Court at The Hague, as well as improve its internal human rights situation.

Along those lines, the Dutch Commissioner informed Mr. Kranidiotis that Mr. Oymen pledged that at the forthcoming Association Council meeting, Turkish Foreign Minister Tansu Ciller will present a package of legislative and administrative measures to the EU for the improvement of human rights in Turkey.

[09] Cyprus, Turkey's role in region discussed by Albright, Kinkel

Bonn, 18/02/1997 (ANA - P. Stangos)

Ms Albright also said she did not consider it appropriate to go into details on the issue.

Talks between Ms Albright and Mr. Kinkel focused, among other subjects, on the Cyprus issue, tensions in the southeastern Mediterranean and the role played by Turkey.

On his part, Mr. Kinkel said that in relation to Turkey "there was an identity of views on the paramount importance of the country in the region, in the context of NATO's security as well."

[10] Athens willing to discuss deployment of multinational peacekeeping force on Cyprus

Athens, 18/02/1997 (ANA)

Asked to comment on statements at the weekend by National Defense Minister Akis Tsohatzopoulos concerning Greece's inalienable right to extend its territorial waters from six to 12 miles, Mr. Reppas said that "this is the steadfast position of the Greek government".

[11] Athens reiterates that Ankara has no say in Cyprus' EU accession

Athens, 18/02/1997 (ANA)

"We have repeatedly underlined that Cyprus' accession to the EU, as this stems from the Cyprus-EU agreement on March 6, does not depend on Turkey's will nor is it subject to a settlement of the Cyprus issue," Foreign Ministry spokesman Constantine Bikas said in an answer to earlier statements by his Turkish counterpart Omer Akbel.

According to an ANA dispatch from Istanbul, Mr. Akbel said that Cyprus can become an EU member only after a settlement has been found and when Turkey also joins the Union.

"Turkey has an obligation, stemming from international law, to put an end to its occupation of the island and react positively to proposals by the Cyprus government. But this obligation certainly does not give Turkey the right to impose its conditions o n the EU and on Cyprus," Mr. Bikas added.

"We again call on Turkey to respect international law and take all actions that contribute to stability, security and development in the eastern Mediterranean," he concluded.

[12] Evert responds to criticism over his stance during Imia crisis

Athens, 18/02/1997 (ANA)

"When history judges these moments after 30 or 40 years no-one will remember if the main opposition party raised or lowered the tones," he said, adding: "History will say that in 1996, the Greek flag was taken down from a Greek islet, Greek territory was occupied and when the Turkish troops withdrew, the claiming of Greek land began with the doubting (of the sovereignty) of 100 islands and islets. This will remain in history."

In an interview in the Athens daily "Ta Nea", Mr. Evert accused Prime Minister Costas Simitis of not informing parties on the course of national issues, describing the government as "a loose confederation of ministers."

He added that conflicting statements made by government members provide Turkey with the opportunity to take advantage of "the liquidity existing in Greek political life."

The ND leader called on Mr. Simitis to accept his proposal of the establishment of a unified national line and to call a meeting of political leaders, saying he is ready to undertake the political cost of any joint decisions taken.

Speaking on a possible US initiative, Mr. Evert said all initiatives which aim for the peaceful resolution of differences are welcome, but added that he can not judge the US initiative before its contents are revealed.

He also claimed that Turkey's long-term goal is to overturn the existing status quo, and warned that due to Ankara's internal problems, there is a possibility that during 1997, tensions may increase in its relations with Greece, possibly causing some incident.

Furthermore, Mr. Evert accused the government of handling the Skopje issue incorrectly. He expressed a belief that it is "great negotiating mistake" for Greece to reveal that it is ready to accept the name of "New Makedonia", saying this weakens Athens' position.

[13] Political developments on the agenda for PASOK's central committee

Athens, 18/02/1997 (ANA)

It had initially been planned to start the session with the farmers' issue which, according to a decision taken by the executive bureau yesterday, will be discussed on Saturday.

Central Committee Secretary Costas Skandalidis said after yesterday's executive bureau meeting that Prime Minister and PASOK President Costas Simitis will make a general speech on current developments and the course of the government and PASOK, while he himself will present a proposal on organizing the executive bureau.

Mr. Skandalidis said that yesterday's meeting focused primarily on the proposal on agricultural policy, while the issue of the teachers' strike was also examined.

[14] Simitis meets with Skandalidis

Athens, 18/02/1997 (ANA)

The two men also held a meeting later with PASOK executive bureau member and Parliament deputy Yiannis Souladakis. Mr. Souladakis is also president of the Institute of Strategic and Developmental Studies (ISTAME).

The meeting with Mr. Souladakis centered on the institute's initiatives in the next months.

[15] Museums remain closed due to strike

Athens, 18/02/1997 (ANA)

Representatives of the Federation of Culture Ministry Unions were informed yesterday that an extrajudicial summons was expected to be delivered to its offices later in the day, declaring the strike illegal and abusive.

[16] Teachers vow to continue strikes

Athens, 18/02/1997 (ANA)

Government spokesman Dimitris Reppas said yesterday that "all limits for providing further increases to teachers have been exhausted," and noted that the government believes the increases already provided "are satisfactory".

He expressed the hope that teachers will begin procedures to defuse the situation by tomorrow and added that all other issues apart from the increases can be dealt with through dialogue.

Questioned on whether there is a possibility that teachers will be paid for the days on which they were on strike, Mr. Reppas said everything could be discussed, but "on the basis of present conditions."

He added that teachers will not be forced to return to work, and that there is no issue of Education Minister Gerassimos Arsenis resigning, noting that other ministers who participated in a cabinet meeting on Friday agreed with the minister's policies.

Primary and kindergarten teachers held a rally outside the education ministry at noon yesterday calling for salary increases. A march was held an hour later towards Parliament and the General Accounting Office, where representatives asked to meet with Finance Under-secretary Nikos Christodoulakis, to whom they delivered their demands.

Meanwhile, the president of the union of high school teachers (OLME), Nikos Tsoulias, has renewed an appeal to Mr. Arsenis for dialogue as the "only solution" to end the teachers' strike.

In a press conference in Thessaloniki yesterday, Mr. Tsoulias said that while teachers were determined to continue their struggle, they were willing to go back to work tomorrow if their appeal for dialogue was accepted.

He contended that the government was incapable of taking a political approach to the crisis in the education system, preferring administrative solutions limited to creating "an impression".

On Wednesday striking teachers will hold a protest rally in Athens and a march to Parliament, and on Friday they are scheduled to release a manifesto entitled "school for culture and education".

In a related development, high school teachers from Macedonia and Thrace rallied yesterday afternoon in Thessaloniki near the White Tower, followed by a march to the Macedonia and Thrace ministry.

Meanwhile, Mr. Arsenis has canceled a trip to Thessaloniki where he was to attend a meeting of the Aristotelian University faculty senate to discuss secondary education reforms.

A heavy workload and Mr. Arsenis' attendance at yesterday's scheduled meeting of PASOK's executive bureau were cited as the reasons for his cancellation.

[17] Gov't says amendment on pension fund deposits won't be withdrawn

Athens, 18/02/1997 (ANA)

The leaders of the Coalition, Democratic Social Movement and Political Spring parties yesterday called on government to withdraw the amendment.

On his part, Labor and Social Security Minister Miltiades Papaioa-nnou yesterday attempted damage control on union reactions to the development.

Meeting with the General Confederation of Workers of Greece (GSEE), Mr. Papaioannou admitted there was a procedural problem with the amendment tabled over the weekend but that he did not have serious opposition to its content.

He clarified that the amendment related to liquid assets and not to reserve capital and that their deposit at the Bank of Greece would have no negative repercussions as the funds would in any case be deposited in commercial banks which would use them in bonds and other investments.

Sources said, however, that he would confer with National Economy and Finance Minister Yiannos Papantoniou on improving the terms of the amendment.

Meanwhile, sources at the labor ministry said the major problem with the amendment was the compulsory nature of the amendment, which restricts the autonomy of the pension funds themselves.

[18] ESHEA

Athens, 18/02/1997 (ANA)

Following an agreement with the two insurance funds for press employees (TSPEATh and EDOEAP), ESHEA submitted a request to the prime minister to withdraw an amendment tabled by the national economy minister under which autonomy and self-administration o f the insurance funds is essentially abolished.

[19] Tourism delegation leaves for Moscow tourist exhibition

Athens, 18/02/1997 (ANA)

Kavala Mayor Lefteris Athanasiadis said "the target of Kavala's presence in this international tourist exhibition is arrival of a large number of Russian tourists in Kavala and Thasos this summer".

He added that the Municipal Tourist Development Enterprise of Kavala (DETAK) has already decided to participate in Europe and former communist countries.

[20] Working hours draft agreement unveiled

Athens, 18/02/1997 (ANA)

The agreement anticipates a non-regulated opening time, while closing time will be at 8 p.m. in the winter and 9 p.m. in the summer. Sundays will be a day off except for purely tourist-related enterprises operating in tourist regions.

Commercial organizations (ESEE) President Dimitris Kapsalis said 99 per cent of the commercial sector is represented, adding that it expects the government to initiate the agreement.

General Confederation of Workers of Greece (GSEE) President Christos Polyzogopoulos, who attended the meeting, also expressed agreement.

As a result of yesterday's developments, Mr. Papaioannou is expected to refer the timetable issue to the Supreme Labor Council (ASE) immediately and, after it expresses its opinion, he will proceed with initiation with a ministerial decision.

[21] Shopowners strike

Athens, 18/02/1997 (ANA)

[22] Northern Greek companies ready for bourse, study says

Athens, 18/02/1997 (ANA)

The center in Thessaloniki is conducting a study of companies based in the region, having as its criteria each company's equity capital, financial results and course over the last few years.

The ongoing study has already considered 100 companies which at first glance satisfy requirements for admission to the Athens Bourse. Of these 42 were judged to fulfill prerequisites to a greater extent.

The president of the Thessaloniki center, George Petridis, stressed that the study was aimed at facilitating the companies and underwriters and in no way implied approval of some sort for their actual admission "since the procedures for admission are clearly stipulated by the law and must be strictly adhered to".

[23] ADEDY announces one-day strike

Athens, 18/02/1997 (ANA)

ADEDY said in an announcement yesterday that the new salary scale is completely different from proposals made by ADEDY, both as regards financial and institutional aspects.

The announcement criticized the elimination of "the falsely described productivity bonus, which constitutes a large part of regular income" and the "ban on the payment of family allowance to both spouses".

[24] Papantoniou predicts single-digit interest rates this year

Athens, 18/02/1997 (ANA)

The minister also promised there would be no fuel price increases, while price rises for public facilities would be minimal, that is, below the expected inflation rate, and would not be made before summer or early autumn.

Mr. Papantoniou denied reports of an increase in the retirement age and reductions in pensions.

"... Reforms will be limited. Injustices and inequalities will be rectified, the funds' operation will be rationalized, along with the relationship between them," he explained.

However, he declined to comment, when asked, on possible increases in social security contributions.

While 1997 would be the "most difficult" year, he expressed the belief that the situation would ease slightly in 1998.

[25] EBEA economic report notes bright spots in economy

Athens, 18/02/1997 (ANA)

Presenting EBEA's six-month report on the Greek economy yesterday, Mr. Papathanasiou said, however, that growth rates have not increased enough to enable the country to participate immediately in the third phase of the Economic and Monetary Union (EMU).

Mr. Papathanasiou said that in no way should the government bow to pressure by various social groups for more benefits if it wants the country's economic conditions to improve.

According to the report, the unemployment rate in Greece also shows a better performance than the European Union average.

The report further stated that the Greek economy's greatest weakness lies in containing public expenditures, restructuring public enterprises, modernizing public administration and the welfare state, privatization as well as delays in investments through the Delors II programs.

[26] Industrialists call for free hand for mass dismissals

Athens, 18/02/1997 (ANA)

The current limit for large companies is 2.0 per cent of the workforce, while the corresponding limit for small undertakings is 10 per cent.

Mr. Stratos said that industrialists would be raising the issue within the framework of social dialogue.

The request brought an immediate response from General Confederation of Workers of Greece (GSEE) president Christos Polyzogopoulos.

"The trade unions will never accept the abolition or raising of the limit set for mass dismissals. On the contrary, they want the protection afforded by the 2.0 percent limit to be extended to smaller companies also," he said.

Mr. Stratos and Mr. Papaioannou also discussed the rate of absorption of European Union funds and the organization of social dialogue.

[27] EU assistance for SMEs announced

Athens, 18/02/1997 (ANA)

He added that the intermediaries which will administer the funds had already been selected for the seven biggest geographical departments of the country.

Within the framework of the Regional Operational Program (PEP), SMEs operating for at least three years will have the right to submit proposals. In the case of Athens and Thessaloniki, they must employ between 5-30 persons and have recorded a turnover of at least 120 million drachmas in one of the last three years.

In other regions of the country, the corresponding limits are 3-30 employees and 70 million drachmas.

Enterprises will receive grants equal to 50 per cent of the investment cost for projects costing 5-60 million drachmas. Investments costing over 60 million drachmas will be accepted but the maximum grant will not exceed 30 million drachmas.

[28] FAGE bond issue

Athens, 18/02/1997 (ANA)

The bond issue in the US market is the first carried out by a wholly Greece-based company and is the result of a collective effort by FAGE, Citibank Greece and its international network.

[29] Four people face trial over Motor Oil pollution

Athens, 18/02/1997 (ANA)

The 300-ton crude oil spill occurred after poor weather caused a breaking in an off-shore transport pipe during off-loading of the tanker "Kriti Sea".

The ship's captain and first officer, Iosif Rousopoulos and Vangelis Domatas, respectively, the general director of Motor Oil, Costas Vasilakis, and Motor Oil official Yiannis Thalassinos, are to appear in court following a ruling issued by the Corinth Misdemeanors Court yesterday.

The same ruling said there are no indications that Motor Oil's president, Vardis Vardinoyiannis, should also be tried for causing pollution through negligence, as according to law, owners are not liable to criminal prosecution if they have appointed a technical director for the company.

According to the ruling, the pollution was caused by a pipe's rupture after the tanker moved eight meters from its original position as its mooring ropes were loosened.

The four men have been charged with causing pollution through negligence, following lawsuits filed by the prefects of Piraeus and Western Attica, as well as community leaders in the area.

End of English language section.

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