Athens News Agency: Daily News Bulletin in English, 02-10-10

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

CONTENTS

[01] Athens praises EU Commission's expansion report

[02] PM briefs President on foreign, domestic issues and Cyprus' EU candidacy

[03] Gov't strikes back over ND's 'junta mayors' accusations

[04] Karamanlis criticizes PM Simitis at ND parliamentary group meeting

[05] Coalition party leader and UN official discuss Iraq

[06] DHKKI says collaboration with KKE during next parliamentary elections possible

[07] FM to meet with US envoy on Thursday

[08] Courts refuse civil suit for 1980 murder by N17

[09] Jewish group denies candidate's claim

[10] Communist leader's husband injured in traffic accident

[11] US analyst focuses on Bush administration's foreign policy strategy

[12] Greek 2002 budget diverging, but general trend good, govt says

[13] National Bank sees signs of economic slowdown

[14] Tax-exempt income to rise in government bill

[15] France does not disagree with Stability Pact aims, Christodoulakis

[16] Greek state bond prices rise in record turnover in September

[17] Greek stocks continue falling, ASE finds support at 1,700

[18] PM, ATHOC chief discuss progress in 2004 projects

[19] PM and ATHOC president discuss Olympic property taxation

[20] Education ministry presents Olympics program for schools

[21] Energy supply adequate for Athens 2004 Olympics, gov't says

[22] Prodi calls ten candidate states, including Cyprus, to join

[23] Foreign Ministry pleased with Commission's report

[24] EU delegation head refers to ''a historic day''

[01] Athens praises EU Commission's expansion report

Athens, 10/10/2002 (ANA)

Speaking to reporters in Athens, Foreign Minister George Papandreou said the east Mediterranean island republic should be praised for its hard work to attain the status of frontrunner for EU accession. The other countries viewed favorably in Commission report include the Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia.

Papandreou also reiterated that Athens wants to further promote Bulgaria’s and Romania’s EU accession prospects.

In its annual enlargement report, the Commission said it would support the two countries’ efforts to join the Union as early as 2007 if they accelerated reforms. However, the Commission did bestow on Bulgaria the status of 'functioning market economy', while noting progress toward the same goal on Romania.

In terms of the “10”, the Commission said they can conclude accession talks in December, with a resulting expansion expected to be amongst the bloc’s most historic, provided of course, that Ireland's voters do not derail the project, as EU Enlargement Commissioner Guenter Verheugen has warned.

Meanwhile, Papandreou called the report’s references to Turkey as the most “detailed and substantive evaluation ever conducted by the European Union for Turkey.” He also cited the “significant steps” made by Ankara in its quest to move closer to Europe, before noting that the report also “outlined significant deficits, which Turkey must fulfill, or in other words, supplement its effort in its European course.”

The report praised Turkey's recent reform package, which included the abolition of the death penalty in peacetime and more cultural rights for its Kurdish minority.

"We will make sure the door remains open for Turkey, but it must not deviate from the task of bringing about the necessary changes," Verheugen was quoted in a Reuters dispatch as saying.

ND spokesman hails European Commission report on Cyprus: Main opposition New Democracy party spokesman Theodoros Roussopoulos on Wednesday hailed the European Commission's report on Cyprus' accession to the European Union, publicized earlier in the day, but warned of the danger of complications until the EU's summit in Copenhagen in December.

''The European Commission's report on the accession of Cyprus to the European Union is an important development. It constitutes the reward for the efforts of the Republic of Cyprus which succeeded today in fulfilling criteria set by the EU and, indeed, in a way that is more satisfactory than that of the other candidate countries,'' he said.

''It is known that that the Commission's report will be examined by the European Council in Copenhagen on December 12, when final decisions on enlargement will be taken,'' he added.

Roussopoulos further said the accession of all of Cyprus, according to the German model, can and should take place during the Greek EU presidency (in the first half of 2003) regardless of a solution to the political problem.

''This decision by the '15' cannot be either cancelled or postponed by the reaction of any third party,'' he said.

Roussopoulos further warned that vigilance, wisdom and determination are necessary, as well as national consensus and rallying, to safeguard the smooth course of Cyprus towards the European family.

[02] PM briefs President on foreign, domestic issues and Cyprus' EU candidacy

Athens, 10/10/2002 (ANA)

Simitis told reporters after his one-hour meeting with President of the Republic Costis Stephanopoulos that the European Commission, based on a report by its relevant services, was slated to decide later in the day on which candidate countries would be included in the first wave of EU enlargement.

''The Commission report (regarding Cyprus) is very positive, I could say,'' the premier said, adding that this was ''not the result of an automatic development in the events'', given that ''a while ago the Commissioners and the Commission President had doubts or were skeptical in relation to Cyprus' European prospect''.

Simitis noted that ''much work by both the Cyprus and Greek governments'' had been necessary to prove that, with respect to the economic and social state of affairs in Cyprus, the island republic ''is the most advanced country among the candidate countries'', and with respect to the political state of affairs, that Cyprus ''cannot be held hostage by any other country (meaning Turkey), and therefore the matter of its EU accession must be examined independently of the political problem''.

That position, the premier added, was accepted ''and appears in the Commission report''.

''Cyprus is acknowledged as the country that has made the greatest progress'' in the report, while, regarding the political problem, ''reference is made to the Helsinki decisions, which stipulate that a solution to the political problem is not a prerequisite (condition) for Cyprus' accession to the EU'', the premier explained.

''In the case of Cyprus, as in that of all the other (candidate) countries, all the factors that play a role will, of course, be taken into consideration,'' he added.

Now, however, the process of discussions to prepare for the EU summit in Copenhagen was beginning, he said, noting that those discussions ''will be influenced by possible difficulties which the 'other side' will create or want to create, or by possible problems that those who do not want Cyprus' EU membership will try to create''.

''It is a difficult period, during which we must be particularly cautious, during which national unanimity is necessary, there should be no political party exploitation (of the issue), and loud voices, high tones and major clashes should not accompany this effort,'' he warned.

[03] Gov't strikes back over ND's 'junta mayors' accusations

Athens, 10/10/2002 (ANA)

Neither the original article nor the amendment that was later freely accepted by Deputy Finance Minister George Floridis caused any kind of problem, government spokesman Christos Protopapas noted.

He accused ND of creating a non-existent issue in a panicked response to its own mistakes.

Floridis also denied the claims before Parliament's Economic Affairs Committee on Wednesday, noting that the article in question was not open to misinterpretation because it did not abolish or modify previous articles of law that forbade counting the years served by mayors under the junta as pensionable.

He also pointed out that the article required a minimum of 10 years in a mayor's positions for someone to qualify for a mayor's pension, thus automatically disqualifying those appointed by the seven-year junta.

Responding to Floridis, ND's representative on the committee Dimitris Kostopoulos said only that Protopapas had admitted that the amendment had been "slapdash and faulty" and urged Floridis to present his arguments to his government's spokesman.

The problems were located elsewhere according to Costas Lafazanis, representative of the Coalition of the Left and Progress, who said that the government's increasing swing toward the right was forcing it to draw demarcation lines between itself and the far right.

Lafazanis noted that Floridis was essentially right on this issue, and that an article that might have been open to misinterpretation had been removed. He criticized both the major parties, however, for focusing on "non-existent and pointless" issues rather than real problems.

KKE leader slams PASOK for stirring up row over far-right: Communist Party of Greece (KKE) General Secretary Aleka Papariga on Wednesday criticized ruling PASOK for stirring up a furore about alleged links between main opposition New Democracy and the far right, during a speech urging voters to support KKE-backed candidates in the local elections.

She said that PASOK leadership had not hesitated to raise the specter of the ultra-right on the eve of the elections when faced with the prospect of large losses among the lower working class.

In reality, however, PASOK was simply giving these far-right groups free publicity because it suited it to do so, she added.

She did not spare New Democracy, either, noting that the main opposition was "fishing in the murky waters of popular discontent" when, in reality, it represented the same neoliberal principles as the ruling party.

[04] Karamanlis criticizes PM Simitis at ND parliamentary group meeting

Athens, 10/10/2002 (ANA)

Referring to charges that ND was a 'hostage' of the ultra-right, Karamanlis accused the government of ''inciting extreme moves'' and ''manufacturing extreme and fantasy scenarios of collusion between ND and the ultra-right'' in its ''desperate attempt to hold on to power''.

Collusion, he said, existed only when there were coinciding interests, and added that the premier, ''with panic as his advisor'', was undermining the political climate and dividing the people.

ND would not follow suit, he said, and called on the party officials to support the ND-backed candidates.

On the Cyprus issue, he reiterated that ND desired a solution to Cyprus' political problem based on the relevant UN resolutions, and said that Turkey's intransigence could not hold Cyprus hostage, adding that the accession of all of Cyprus into the EU, along the German model, must be effected during the Greek EU presidency in the first half of 2003.

On the issue of terrorism, Karamanlis reaffirmed ND's support for the efforts of the police and the justice system and added that he did not wish to exploit the issue for party purposes.

He added, however, that all the related cases must be cleared up and accused the premier of "opening up a public dialogue with the terrorists".

Karamanlis further criticized the government over the state of the economy, which he said was a "political problem" and attributed to "PASOK's inability to govern and its lack of economic policy". He also charged that the new budget was faulty, and spoke of "hidden debts and deficits", high inflation rates and a high cost of living, and criticized the premier over the state of the Athens Stock Exchange.

Gov't accuses ND leader of 'deep contempt' for local government: Through his actions at a public meeting organized by a candidate running for Piraeus prefect, main opposition New Democracy leader Costas Karamanlis had revealed his party's deep contempt for the independence of local government, government spokesman Christos Protopapas said on Wednesday.

"Either Mr. Karamanlis is a candidate for prefect and we haven't heard or else he has a deep contempt for local government and does not hesitate to use it for party-political ends in a bid to topple the government," the spokesman added.

According to Protopapas, the main opposition seemed to view the local authority elections as a springboard for its efforts to gain power. The spokesman once again reiterated the government's position that these elections "were political in the sense that they determined the future of local government".

Karamanlis had attended a meeting at the headquarters of candidate prefect for Piraeus Maria Tsanaki on Tuesday night, where he had been enthusiastically received and had responded by saying "We are the majority".

ND has openly urged voters to use the local elections to express their displeasure against the government's policies and to cast protest votes that will "send a message" to the government.

[05] Coalition party leader and UN official discuss Iraq

Athens, 10/10/2002 (ANA)

Constantopoulos said such a war will be an ordeal for all of mankind, it will cause additional destruction for the Iraqi people and the wider region, harm the European Union and undermine the UN's role.

He added that in no way should the UN turn into an organization ratifying whatever war plans and, on the contrary, it should safeguard its role of being a paramount international organization and regulator of international relations with the view of consolidating world peace and defending international law.

[06] DHKKI says collaboration with KKE during next parliamentary elections possible

Athens, 10/10/2002 (ANA)

Speaking at a press conference, Tsovolas said that joining forces with the KKE for the upcoming local government elections was a step further in their existing cooperation as it was manifested in the trade union sector and in the mobilization of farmers.

''On the day after, this collaboration of the left, progressive and democratic political forces will certainly continue … everything is possible in the game; this is what I meant earlier, that on the day after, especially if these schemes get voted, the way will be paved for the country to have a really progressive course, gradually, culminating in the parliamentary elections.''

Referring to recent gallops, Tsovolas said that there were a lot of un-publicized gallops that gave high percentages to the running schemes supported by his party ''with percentages much different than those presented with staged and deliberate gallops''.

The leader of DHKKI criticized both private and public TV channels for not hosting any of his party's members and warned that on the day after the elections his party is going to press charges against channel owners, reporters and managers, ''if they fail to comply with their constitutional and legal obligations''.

Replying to reporter's questions on Cyprus' EU accession course, Tsovolas expressed the opinion that the EU enlargement was not going to take place now and that it was going to be delayed for purely economic reasons, also expressing fear that ''they are creating false hope for Cyprus and Cypriot Hellenism''.

''My views are consistent'', he said ''and they are more consistent today, Europe's big powers do not intend, under US pressure, to place Cyprus in the EU before Cyprus and Greece accept the fait accomplis in Cyprus, with the confederation. If only it is not like that. We shall see'', he added.

[07] FM to meet with US envoy on Thursday

Athens, 10/10/2002 (ANA)

[08] Courts refuse civil suit for 1980 murder by N17

Athens, 10/10/2002 (ANA)

Stamoulis was the driver of senior police officer Pantelis Petrou. They were both killed during the terrorist group's attack on Petrou on January 16, 1980.

Petrou's family has also filed a civil suit against the suspected terrorists in custody, but only as regards the crime of participating in a criminal organization, for which the statute of limitations does not apply.

[09] Jewish group denies candidate's claim

Athens, 10/10/2002 (ANA)

The candidate in question is former ND deputy and current independent MP George Karatzaferis.

KIS notes that its announcement aims exclusively at “setting the record straight.”

[10] Communist leader's husband injured in traffic accident

Athens, 10/10/2002 (ANA)

Athanassios Paparigas was run over at 6 p.m. as he was crossing Marathonas avenue at the seaside resort of Nea Makri.

Paparigas was rushed to the KAT hospital in Athens, while the car's driver has been arrested.

[11] US analyst focuses on Bush administration's foreign policy strategy

Athens, 10/10/2002 (ANA)

“Until Sept. 11, 2001 and in his first eight months, George W. Bush was not paying too much attention to foreign affairs,” US foreign policy scholar Joshua Muravchik stressed, before adding that the ongoing “war on terrorism” subsequently dominated the US administration’s agenda.

He spoke in Athens as a guest of the Constantine Karamanlis Institute for Democracy, and in an address entitled ''President Bush's International Strategy: An Independent Assessment''. The event, which took place at a downtown Athens hotel, was held in association with the US embassy in Athens' cultural section.

In focusing on the anti-terrorism front, Muravchik offered up a slightly mild surprise by calling Iran the most prominent state in the world supporting terrorism at present, before however, noting that possible US action against the major Mideast country and Iraq neighbor was “very unlikely”. He qualified his evaluation by saying, “many indications recently show that the Iranian people are tired of (that country’s) theocracy”, while mentioning a possible victory of the moderate elements in Iran or even a complete toppling of the Islamic state.

Muravchik, a researcher with the American Enterprise Institute, specializes in issues concerning US foreign policy and international relations. His most recent book, entitled “Heaven on Earth: The Rise and Fall of Socialism”, was released in March 2002.

[12] Greek 2002 budget diverging, but general trend good, govt says

Athens, 10/10/2002 (ANA)

Addressing a parliamentary budget committee meeting, Mr. Christodoulakis said that the 2002 budget was initially drafted within a framework of better economic conditions than the one ''we are currently living. The EU believed that its growth rate would reach 1.7 percent this year, but this, unfortunately, did not happen,'' the Greek minister said.

Mr. Christodoulakis said that the adoption of the euro currency also contributed in increasing inflationary pressures in the country, as well as other south European states.

The minister reiterated, however, that the ''implementation of the budget was good, with revenues rising slightly above expectations, regular budget spending higher and with the public sector's operating spending steady.''

Mr. Christodoulakis noted that there was some other bad news. ''Stock market revenues are significantly down and interest payments proved higher than originally anticipated. Greece's public debt was increased by around five points after the European statistics agency changed its method of measuring state debt.''

Main opposition ND party deputies accused the government of continuing to gloss over the situation over the implementation of this year's budget, despite the fact that the Greek economy was pressured by an international economic recession.

[13] National Bank sees signs of economic slowdown

Athens, 10/10/2002 (ANA)

In its economic and market analysis report, National Bank said that signs of slowdown were evident in domestic consumption, a stagnant eurozone economy, a drop in stock markets and its impact on consumer and business confidence, and a rise in oil prices around 30 US dollars per barrel.

The report, however, noted that the Greek economy was still growing with rates significantly higher compared with the eurozone average in the first first half of 2002 (4.1 percent compared with 0.5 percent, respectively), amidst an international environment hit by increased uncertainty. Construction activity and consumption were the two main driving forces of economic growth in Greece, counterbalancing a negative impact of a worsening external trade balance and of a decline in stock market prices.

The report said it expected the same forces (particularly construction) to offer growth momentum to the economy next year, helped by a satisfactory increase rate of real disposal income, low interest rates and an ambitious public investment program (up 13 percent in 2003).

National Bank's report said that under an optimistic scenario for international developments, the Greek economy could grow up to 4.0 percent in 2003 on the precondition that eurozone economy could grow around 2.5 percent and that oil prices would drop to 25 dollars per barrel in the third quarter and public investments could grow a real 11 percent in Greece.

Under a pessimistic scenario, growth rate would slow to 3.3 percent.

Greek inflation, measured by the consumer price index, is expected to drop gradually by the second quarter of 2003, although it will be difficult to fall below 3.0 percent (annual average rate).

The report also forecast that listed companies, excluding the financial sector, are expected to report satisfactory results (double digit figure) this year and noted that companies' borrowing was running at double digit rates raising questions over a risk of default. National Bank said there was no risk of Greek companies defaulting on their debt as their liability to market value equity capital ratio was still significantly lower compared with the eurozone average (23.2 percent from 56 percent, respectively).

[14] Tax-exempt income to rise in government bill

Athens, 10/10/2002 (ANA)

Announcing the bill's contents, Christodoulakis said that income of up to 10,000 euros will not be taxed for wage earners and pensioners; and up to 8,400 euros for other categories of taxpayers.

The tax-free amount rises to 11,000 euros for one-child families; 12,000 euros for two-child families; and 20,000 euros for households with three or more children, the minister told a news conference.

''Income tax is lower, and families are especially favored,'' he said.

In addition, spending categories including hospital care, rent, private lessons and fees to coaching establishments, mortgages, and consumer spending will bring a 15 percent reduction in tax, the minister added.

Other terms of the bill include tax relief on inheritances; abolition of a so far legally ordained owner-occupant status for householders; and the abolition of regular tax declarations for an estimated one million wage earners and pensioners.

Finally, a flat 10 percent tax is to be imposed on rent from homes to be leased out to visitors of the 2004 Athens Olympics in July and August of that year.

[15] France does not disagree with Stability Pact aims, Christodoulakis

Athens, 10/10/2002 (ANA)

The Greek minister noted that this was the decision taken by Eurogroup (Eurozone Economy and Finance ministers) on Monday.

Mr. Christodoulakis noted that France did not disagree with the Stability and Growth Pact aims but its refusal to agree with eurogroup's decisions were reflecting its inability to balancing its budget next year.

[16] Greek state bond prices rise in record turnover in September

Athens, 10/10/2002 (ANA)

The domestic state bond market also registered two more record highs: the daily value of trading totalled 5.310 billion euros on September 24, breaking the previous record of 4.650 billion euros from May 21, 2002, while the average daily turnover totalled 3.162 billion euros, up from 2.725 billion in August.

The central bank said in its monthly report that uncertainties over economic developments and expectations of lower interest rates worldwide maintained investors' interest for short- and medium-term securities (up to seven years) in September. Turnover in this category of bonds totalled 38.165 billion euros, or 57.48 percent of total turnover, with the five-year bond (ending January 15, 2004) attracting the heaviest demand.

Turnover in the 10-year benchmark bond (ending May 18, 2012) was 6.389 billion euros.

Bond prices rose by 88 to 191 basis points in September, extending their gains for the fourth consecutive month. Fifteen-year bonds recorded the highest monthly increase to 114.55 (yielding 4.80 percent) in September from 112.64 (yielding 5.01 percent) in August.

The 10-year benchmark state bond saw its price rise to 104.56 (yielding 4.65 percent) in September from 102.70 (yielding 4.89 percent) the previous month. The September figure was the highest ever since the bond was issued (99.795 on January 17, 2002).

Following the new fall in bond yields in September, the yield curve was steeper with the spread between three- and 20-year state bonds widening to 171 basis points from 148 bps in August. The three-year bond yield fell to 3.45 percent from 3.81 percent, and of the 20-year to 5.16 percent from 5.29 percent, over the same period.

The average yield spread between the 10-year Greek and German Bunds eased to 34 bps in September from 35 bps in August.

[17] Greek stocks continue falling, ASE finds support at 1,700

Athens, 10/10/2002 (ANA)

The index ended 0.57 percent lower at 1,727.09 points, off the day's lows of 1,704.71 points as a wave of buying focusing on Hellenic Telecommunications Organization’s shares partly reversed the trend.

National Bank's shares suffered heavily, losing 4.70 percent of their value.

The Holding and Telecommunications sectors were the only ones to score gains (1.07 percent and 1.02 percent, respectively), while the Textile, Publication and Bank sectors suffered the heaviest percentage losses of the day (2.96 percent, 2.47 percent and 2.30 percent).

The FTSE/ASE 20 index for blue chip and heavy traded stocks fell 0.93 percent, the FTSE/ASE MID 40 index dropped 1.49 percent and the FTSE/ASE SmallCap 80 index ended 1.53 percent lower.

Turnover was a low 76.2 million euros. Broadly, decliners led adverse by 238 to 70 with another 46 issues unchanged.

The most heavily traded stocks in value were Hellenic Telecommunications Organization, National Bank of Greece, Informatics, Public Power Corporation, and Technical Olympic.

Derivatives Market Close: Turnover at 82.9 mln euros Wednesday

Equity Index Futures: