Athens News Agency: Daily News Bulletin in English, 99-09-06

Athens News Agency: Daily News Bulletin in English Directory - Previous Article - Next Article

From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] Greece should work for timely entry into euro zome, PM says

[02] EU ministers accept Papandreou's proposal for quake aid to Turkey

[03] Simitis urges re-election of President Stephanopoulos

[04] Thessaloniki officials brief Simitis on problems

[05] Papantoniou voices optimism on Greek economy

[06] Greece condemns climate of instability in Kosovo

[07] Israeli-Palestinian meeting ends in climate of mutual promises

[08] Proposal endorsed for Kyrkos candidacy for presidency

[01] Greece should work for timely entry into euro zome, PM says

Athens, 06/09/1999 (ANA)

In his annual economic policy speech at the Thessaloniki International Trade Fair, Mr. Simitis said that aligning with the 11-member euro bloc would buffer the country and its economy from upheaval abroad, allowing the government to accomplish its goals of a 15-trillion-drachma investment plan in 2000-2006 and higher social spending.

"In a single year, Greece faced (successfully) international financial and economic crises in major countries, the war and turbulence in its immediate environment, and the impact of unforeseen rises in oil prices," the premier told a dinner. "The country must move forward. The government is steadily and responsibly moving towards economic and monetary union ... This will eliminate the main elements of uncertainty, risk and inordinate cost that characterised the isolated currencies of small countries."

Helping to safeguard the economy was the drachma's entry into the European exchange rate mechanism in March 1998, which also has acted as an incubator for euro zone entry, the premier said.

In addition, joining the euro would make Greece part of the EU bloc that was set to become a key player in the global arena as a counterweight to a single superpower, currently the US, he added.

"A single superpower is not a factor for global stability. That is why a politically powerful European Union is needed more than ever as a factor in global equilibrium," Mr. Simitis said.

The final stumbling bloc to euro entry on January 1, 2001 was lowering inflation below two percent from the current 2.1 percent and 5.2 percent last year. But a new round of cuts in indirect taxation on fuel and automobiles announced last week would aid both the counter-inflationary drive and real incomes, the premier added.

Furthermore, easing inflation would help lending rates to fall further, again aiding households. Workers and business had responded to the government's call last year for wage and price restraint.

The benefits of tight fiscal policies in past years were starting to appear, allowing the government to ease off and make genuine concessions to people on low and middle incomes, and with families.

The changes, along with measures to combat unemployment and support for the farm sector, were not pre-election handouts, Mr. Simitis said. National polls are due in September 2000.

At the same time, a fiscal problem remained with the self-employed and services sectors.

Greece is to apply for euro zone membership by mid-March 2000 with approval expected at the EU's summit in June of the same year.

In a speech strewn with references to the need for stability and cohesion, Mr. Simitis warned that work was needed to maintain the progress already made.

"Our gains were hard to make, but we could very easily lose them if we fail to consolidate our achievements," he said.

The premier called for the avoidance of ructions over elections for a new president of the republic early next year.

"Our position on this matter is clear. Constitutionally, election of the president of the republic is a mandate for unity of the political system, and not a butt of party political conflict," Mr. Simitis said.

He stated his party's support for President Kostis Stephanopoulos as candidate for the election.

Commenting on national elections, Mr. Simitis said: "At a time when a smooth political course is required, we believe that artificially bringing forward the elections as a form of blackmail does not serve the country, and erodes institutional procedures ."

Despite tight economic and monetary policies, Greece was successful in the standard of living it had attained.

"The United Nations has ranked Greece 20th among countries on the basis of social and economic prosperity. It lies in the top 13 percent of the world's population in terms of economic and social development," Mr. Simitis said.

The government had also managed to maintain a rise in social spending, bucking the European trend, he added.

The key to Greece's future was lowering interest rates, utilising CSF funds, completing structural changes in the economy, liberalising telecoms, electricity and maritime transport markets in 2001, helping to rebuild the Balkans, and hosting the 2004 Olympics, the prime minister said.

Progress in the future would mark the continuation of a historic step taken in 1974 when Greece embarked on its European orientation under the late Constantine Karamanlis and then the late Andreas Papandreou, he added.

Opposition reactions : Reacting to the prime minister's speech on Saturday, main opposition New Democracy party spokesman Aris Spiliotopoulos spoke of panic and criticised him of placing the country in an undeclared pre- election period of indeterminable time and at the same tim e involving the institution of President of the Republic in his partisan petty evaluations.

The Coalition of the Left and Progress said Mr. Simitis turned the rostrum of the 64th TIF into a pre-election balcony.

"Mr. Simitis bypassed all the major problems of social and regional inequalities, the weakening of small and medium-size incomes, the problems of education, health, insurance, quality of life, the environment and cultural degradation," the Coalition said.

On his part, Democratic Social Movement DHKKI leader Dimitris Tsovolas accused the prime minister of making insipid pre-election promises.

"Mr. Simitis tried in vain with insipid pre-election promises or dealing out crumbs to appear from a prime minister of regional desolation, demolition of the welfare state, unemployment and national humiliation to a prime minister of development, social justice and national successes," he said.

Athens News Agency

[02] EU ministers accept Papandreou's proposal for quake aid to Turkey

SAARISELKA. Finland, 06/09/1999 (ANA)

The officials supported the proposal put forward by Foreign Minister George Papandreou at an informal meeting in Finland that debated the EU's ties with Turkey. The ministers were not empowered to take decisions.

Mr. Papandreou told the ministers that the government, which was eager for the EU to grant Turkey earthquake aid, had already agreed with the EU's executive Commission the amount of assistance and the method of payment.

The monies would be given to the Turkish government and to non-governmental Turkish organisations, he added.

The aid will total nearly 200 million euros in the form of grants and another 600 million euros in loans from the European Investments Bank.

The ministers did not discuss the question of a financing protocol that Greece has vetoed because from a legal point of view it is unclear whether or not the cash from the protocol appears in the EU's budget.

In addition, release of the funds has not been requested, apparently not even by Turkey, and the question of further aid to Turkey will be discussed at an EU summit in Helsinki in December whose agenda includes the country's candidacy for EU membership.

Most ministers and EU officials at the Finland meeting praised Greece's response to the earthquake in interviews to the media, saying the country played a leading role in coordinating the bloc's aid effort.

They also commented on what they saw as a new climate in ties between Greece and Turkey, and the European Union with Turkey.

On Saturday, Mr. Papandreou and his Turkish counterpart Ismail Cem spoke on the telephone.

The Greek minister outlined to Mr. Cem his government's intentions over the aid issue, which Ankara welcomed, according to diplomatic sources.

The same sources said that Turkey was keen to re-establish ties with the EU, which it broke off two years ago, and was ready to alter its stance.

Mr. Cem has accepted the EU's invitation to visit Brussels, probably on September 13 when the Council of General Affairs is to meet.

Mr. Papandreou said that the question of upgrading Turkey's status to an EU candidate would be discussed within the bloc.

The main point was that the EU should agree on the commitments that Turkey should make if it were to become an applicant and then embark on entry talks, the date of which could not at present be determined.

"There needs to be a route map for Turkey," Mr. Papandreou said.

The map should contain specific stages and conditions that the EU had set at various times, he added.

Needed were respect for human rights and more democracy in Turkey.

The main issues for Greece were still Cyprus and the creation of neighbourly relations, and Turkey should comply in order to move towards entry talks, Mr. Papandreou said.

The approach to Turkey's membership varied among EU members. Certain countries, including Sweden, were adamant on the democratisation of Turkey, while others did not want to set tough terms from the outset, he said.

It was significant Turkish Prime Minister Bulent Ecevit had sent a letter to German Chancellor Gerhard Schroeder several months ago in which he acknowledged that his country had major steps to take before arriving at the start of EU entry negotiations, Mr. Papandreou said.

EU aid to Serbia : Mr. Papandreou told the council on Saturday that he welcomed a gradual shift within the EU towards lifting sanctions on Belgrade.

As examples, he cited humanitarian aid of around 40 million euros that the EU would grant the Serbian populace, the imminent lifting of a fuel embargo on Montenegro and Kosovo, and the removal of sanctions on flights to and from Serbia, and on sporting events.

The minister said he disagreed with the viewpoint of certain member states that Yugoslav President Slobodan Milosevic would fall from power if sanctions were retained, saying the result would be the reverse.

He added that crime in Kosovo should be tackled and disarmament of the Kosovo Liberation Army completed.

On the crime issue, Greece and Italy would submit joint proposals to a special EU summit due in the near future, he added.

ND says Papandreou is turning into 'a preacher' : Main opposition New Democracy party spokesman Aris Spiliotopoulos said yesterday Foreign Minister George Papandreou is turning into a preacher of Turkey's European prospects. "With repeated statements of his, the foreign minister is turning into a preach er of Turkey's European prospects," Mr. Spiliotopoulos said.

Mr. Spiliotopoulos said nobody, of course, would object if Turkey complied with the conditions put to it by the European Union for this prospect but, unfortunately, Turkey has done absolutely nothing in this direction.

"It is nationally harmful, therefore, for the Greek foreign minister to forget the basic preconditions for the smooth course of relations between the EU and Turkey," he said.

Athens Newss Agency

[03] Simitis urges re-election of President Stephanopoulos

Athens, 06/09/1999 (ANA)

Mr. Simitis told a news conference that the president had been a success in his post. He had respected constitutional procedures and was welcomed by the majority of the public.

The ruling PASOK party had proposed that Mr. Stephanopoulos should be re- elected by parliament in line with public opinion, and saw no reason for a change in president, he said.

Replying to a question on a proposal by the Coalition of the Left and Progress that Leonidas Kyrkos should become president, Mr. Simitis said he failed to grasp how any left-wing candidacy could in reality be left-wing when it served the political right 's petty party interests.

Relations with Turkey : The premier also said that a European Union foreign ministers' meeting in Finland yesterday had accepted Greece's proposals for aid to earthquake-stricken Turkey.

The informal meeting had endorsed a proposal by Foreign Minister George Papandreou that two pending financing arrangements should be activated of 14 million ecus and 150 million ecus in order to help fund reconstruction after the earthquake, the premier said.

In addition, the council of ministers backed a proposal that Turkey should receive a loan from the EU as earthquake aid.

The question of a financing protocol for Turkey that Greece has vetoed was not raised at the meeting, Mr. Simitis added.

He said that Greece maintained unchanged its policy on problems created by Turkey in the Aegean, and had already proposed their resolution through recourse to the International Court at the Hague.

Concerning Greece's earthquake aid to Turkey, the prime minister said that the country operated a principle of assisting other countries, especially neighbouring ones, when disaster struck.

"Our principle is friendship and cooperation among peoples and the earthquake cannot be viewed as an opportunity, because that would make a mockery of our policy," Mr. Simitis said.

"We are exercising a policy of peace and cooperation, and Turkey should examine its own line, its own views, and finally make a move that will help to bring a major improvement in the climate."

On the question of US President Bill Clinton's visit in November, Mr. Simitis said the US president is welcome in Greece, but the agenda of talks has not yet been determined. However, he believes that the Cyprus issue, Greek-Turkish relations, the European Union and Greek-US relations will be discussed.

"I don't think and I don't believe that he will be carrying any message," he said.

Economic measures : Finally, the prime minister said that a package of economic measures announced last week, including tax cuts, were not pre- election hand-outs, but proof that the economy was making good progress.

He added that new options would open for the economy following entry into the euro zone, whose target date is January 1, 2001.

The package of measures were part of the government's plan to take Greece forward.

"This policy has nothing to do with elections. It is about the way ahead and the government's new four-year term," Mr. Simitis said.

He added that there would be no new concessionary measures.

Mr. Simitis said the Stock Exchange was a tool for growth, while many businesses draw a great deal of capital from it, but it also has certain individual aspects. He added that there was gambling on chance and speculation, but the government was trying to control these aspects.

Referring to the issue of educational reform, Mr. Simitis said educational reform was necessary, stressing the existence of inflexibility in the educational system.

He said educational reform was showing certain problems of adjustment and changes will be brought about wherever this is necessary.

Asked to comment on relations between the Church and the state, Mr. Simitis said the Church preoccupies itself with ecclesiastical issues and the state handles its own issues. He said the creation of a mosque in Athens is a decision which is up to the state, while the Church can have its own say.

Mr. Simitis was also asked about the upcoming visit to Greece by Pope John Paul II, saying that the Pope is a head of state and in this capacity he is welcome to visit the country.

Athens News Agency

[04] Thessaloniki officials brief Simitis on problems

Athens, 06/09/1999 (ANA)

The central municipality of Thessaloniki benefitted directly from the meeting since the sole issue brought to the prime minister's attention by Thessaloniki Mayor Vassilis Papageorgopoulos, the relocation of the municipality's services at a renovated bu ilding in the port area, will be met.

Mr. Simitis responded positively to the municipality's claim and underlined the support given to the claim by Environment, Town Planning and Public Works Minister Costas Laliotis.

He then called on Minister of Macedonia and Thrace Yiannis Mangriotis to gather the views of other agencies in the city in 15 days' time and committed himself that the government will reach a decision on the issue in the next 15 days.

Thessaloniki Prefect Costas Papadopoulos also emerged from the meeting "with his hands full", since the prime minister gave instructions for funds to be conveyed from the second Community Support Framework for school housing problems raised by the prefect.

At the start of his reply to claims put to him, Mr. Simitis called for a spirit of consensus to prevail, saying that it is not possible for one to want the inclusion of all plans kept in mind in the third CSF, because such a thing is naturally impossible since not only 15 trillion drachmas but even 45 trillion drachmas would not be enough.

He reminded, referring to the same issue, that fund transfers are not permitted in the third CSF and consequently proposals for projects should be specific and have been studied.

Athens News Agency

[05] Papantoniou voices optimism on Greek economy

Athens, 06/09/1999 (ANA)

In an exclusive statement to the Sunday newspaper "Vima tis Kyriakis", he said the Greek economy's productivity will be upgraded substantively with the third Community Support Framework and that for this reason "I believe it is simple for our country to go ahead with development rates in the region of 5 per cent compared to 3.5 per cent at present."

Mr. Papantoniou said in his statement that continuous vigilance is necessary to prevent the overheating of the Greek economy.

Athens News Agency

[06] Greece condemns climate of instability in Kosovo

Athens, 06/09/1999 (ANA)

"There is a climate in Kosovo which shows that the international factor has not yet achieved its targets," government spokesman Dimitris Reppas said in the northern port city of Thessaloniki.

"There is a high degree of liquidity and instability and I must say that the pace of disarming the UCK is not the most satisfactory. The peacekeeping military forces stationed there should show increased zeal to enable all citizens having their homes in Kosovo to return as soon as possible and live without facing the slightest danger," he added.

Mr. Reppas said it appears that the risk is high even now for those who are living or want to return and this is unacceptable when one speaks of Europe in the 21st century.

Athens News Agency

[07] Israeli-Palestinian meeting ends in climate of mutual promises

Athens, 06/09/1999 (ANA)

Participants, which included former Israeli prime minister Shimon Peres, welcomed Saturday's signing of a deal in Sharm El-Sheikh, Egypt, between Israeli Prime Minister Ehud Barak and Palestinian President Yasser Arafat that puts stalled Middle East pea cemaking back on track after weeks of tortuous negotiations.

In a common declaration, the participants recognised the Palestinian people's legitimate right for self determination, while the Palestinians stated that their goal would be the establishment of an independent democratic state alongside Israel.

The declaration also condemns "all forms of acts of terrorism and violence ... both the Israelis and Palestinians are determined to cooperate closely in an uncompromising fight against terrorism, which will safeguard the peace process and allow the two peoples to become an integral part of the Middle East community."

The meeting decided to establish three committees, an inter-parliamentarian committee, a civil society and people-to-people committee and a political committee.

It also decided that the Steering Committee composed of representatives of both sides and of a representative of the Greek Ministry of Foreign Affairs will monitor and report on the implementation of what has been agreed upon in the declaration.

The meeting also endorsed the proposal advanced by the Greek side to explore the possibility of close cooperation among Israel and the Palestinian Authority and Greece in the preservation of cultural heritage as well as in the protection of natural reso urces and other environmental issues. Two respective committees will be formed towards this end.

Greek Alternate Foreign Minister Yannos Kranidiotis, whose ministry sponsors the Athens Dialogue, expressed satisfaction at the end of the meeting, saying that for many years now Greece has been the only country which substantially approaches the achiev ement of a peaceful solution between the two peoples.

"The Athens Dialogue was the only channel of communication between Israelis and Palestinians that existed at a certain phase," Mr. Kranidiotis told reporters.

"A new wind is blowing in the wider Mediterranean and Balkan region, resulting in this area developing at some moment into an area of free exchanges of cooperation and communication, a fact which will promote the interests of all countries in the region.

Greece is called upon to promote and strengthen all the above since it is experiencing the repercussions of all the events which take place in its fluid surroundings," he said.

Israeli Alternate Foreign Minister Nawaf Massalha said the signing of the peace deal was an additional step for further building confidence between the new Israeli government and the Palestinian leadership.

He thanked the Greek government for efforts it has been making for years to bring the two peoples closer.

"We shall continue to build projects and programmes in the framework of the door opened following the signing at Sharm El-Sheikh both with Greece and the other Mediterranean countries, since we are encouraged now both by Greece, the European Union which assists it in efforts to achieve peace between the two peoples, as well as Egypt, Jordan and the other countries," Mr. Masalha said.

Palestinian Minister Anis el Qaq said peace is a noble target for both sides and for all the countries in the Mediterranean.

"An open spirit and an open heart are necessary for understanding," he said, adding that the past must be overcome to enable the two peoples to live together.

Emmanuel Roukounas, International Law professor at the Athens University, coordinated the meeting.

In a statement to the Athens News Agency (ANA) he said "Greece believes that, through such dialogue initiatives for the peaceful coexistence of peoples, the doors to cooperation among peoples open and the doors of nationalism and extremism close which are anachronistic conceptions in the present age."

Replying to a question on whether the overall climate being shaped in the region is capable of affecting the development of the Cyprus issue, Mr. Kranidiotis said: "Both Greek-Turkish relations, which are experiencing a period of good climate, and the reconstruction being attempted in the Balkans, in conjunction with developments in the Middle East, send a message of optimism for a solution to the other problems existing in the area."

On the question of Cyprus in particular, Mr. Kranidiotis said: "It is in the interest of the Arab peoples as well to promote a just and viable solution to the Cyprus issue in their own way, a solution which will contribute widely to the peace effort in the region. Stability and peace in Cyprus is also linked directly to the peace effort in the Middle East."

Athens News Agency

[08] Proposal endorsed for Kyrkos candidacy for presidency

Athens, 06/09/1999 (ANA)

Summing up the Committee's two-day session yesterday, Mr. Constantopoulos accused Prime Minister Costas Simitis and the government of danger mongering and of being insincere with the Greek people.

"At a time when the prime minister is even examining proposals for early elections, and before March, he is striving to convince that elections in spring and not in September will be disastrous," Mr. Constantopoulos said. A soldier of the Greek peacekeeping force in Kosovo was accidentally injured early on Saturday, by his own service pistol, the Greek Army General Staff announced. Sgt. Anastasios Dinakis, a five-year volunteer serving in the Greek force in Urosevac in Kosovo, was injured at about 1 am on Saturday and was transported to the Thessaloniki military hospital by helicopter. His condition remains critical. The incident is being investigated.

Athens News Agency

Athens News Agency: Daily News Bulletin in English Directory - Previous Article - Next Article