Athens News Agency: Daily News Bulletin in English, 03-04-02

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

CONTENTS

[01] DM discusses Iraq and Turkey in talks with Donald Rumsfeld

[02] FM Papandreou: EU enlargement should not be affected by Iraq

[03] Greece repeats opposition to Turkish invasion of Iraq

[04] Erdogan says Cyprus to be discussed with Simitis next week

[05] FM holds telephone talks with Turkish counterpart on Iraq

[06] Alternate FM comments on d' Estaing's letter to Simitis

[07] FM stresses Turkey's difficulties to socialist Eurodeputies

[08] Greece confirms US request for talks with EU troika, NATO officials

[09] State Department Human Rights report 2002 released

[10] Diamantouros sworn in as new EU ombudsman

[11] EU funds to help Greek economy, FinMin says

[12] Education ministry has 2nd highest absorption of 3rd CSF funds

[13] Eurozone, Greek PMIs fall to contraction levels in March

[14] Greece not invulnerable to European-wide economic problems, gov't notes

[15] Greek fiscal status seen intact after EU enlargement

[16] Bank of Greece cautiously pessimistic over eurozone economy

[17] Greece expects increased tourist arrivals from Belgium-Luxembourg

[18] Council of Europe approves report on farm policy overhaul

[19] Economist conference to focus on EU-US ties

[20] Greek stocks end slightly up on Tuesday

[21] ATHOC to jointly organize Samothrace journalists' conference

[22] Dora Bakoyianni takes the stand at 'N17' trial to testify over husband's murder

[23] Archbishop of Albania warns against religion becoming another 'victim of war'

[24] National Radio and Television Council imposes sanctions on television channels

[01] DM discusses Iraq and Turkey in talks with Donald Rumsfeld

WASHINGTON 02/04/2003 (ANA - T. Ellis)

Speaking to reporters on his departure from the Pentagon, Papantoniou said he held the meeting in his capacity as EU chairman and, in this framework, he conveyed the positions of the EU and ''the desire of Greece and the EU'' for hostilities to come to an end soon and regrettable losses to be limited.

Papantoniou stressed the need for the UN's involvement in settlements to be shaped in Iraq after the war and for the flow of humanitarian aid to the country, adding that the presence of the UN will provide the element of international legality to the whole undertaking.

Referring to Turkey, Papantoniou spoke of irresponsibility regarding its insistence in sending forces to northern Iraq, but supported the need for Ankara not to be isolated because this will strengthen extreme attitudes, such as claims and violations in the Aegean.

The defense minister said Rumsfeld agreed with this, believing that Turkey should move responsibly in the framework of an international system and contribute to regional stability.

Papantoniou termed as a ''positive move'' U.S. Secretary of State Colin Powell's visit to Ankara ''to the degree that it is part of the effort for Turkey not to be isolated and aggressive attitudes on its behalf not to be encouraged.''

He also described to his interlocutor how the latest effort by UN Secretary General Kofi Annan on the Cyprus issue collapsed, which was due to the intransigence of Turkey and Turkish Cypriot leader Rauf Denktash.

Another issue discussed was the European army and the important role played by the Greek EU presidency, which began last July in the defense sector, in its operation.

He mentioned that the first operation by European forces began in the Former Yugoslav Republic of Macedonia (FYROM) on Monday.

Papantoniou and Rumsfeld also discussed the need for a compromise solution to be found regarding the structure of the NATO alliance's headquarters, which will secure a balance concerning the geopolitical roles of Greece and Turkey in the region.

[02] FM Papandreou: EU enlargement should not be affected by Iraq

Athens, 02/04/2003 (ANA)

Papandreou said there was no such thing as an “old” and “new” Europe, but all European states were making up Europe itself. He added that Europe’s power is and will be a power of unification.

Regarding a recent proposal for common defense policy put forth by France, Germany, Belgium and Luxembourg, Papandreou stressed that the Greek EU Presidency was closely monitoring development and wished that any such initiatives be included in the EU and its institutions.

Speaking on the Iraq war and common foreign and defense policy, the Greek foreign minister reminded his audience of a Chinese saying, that a crisis may be a risk but may also be an opportunity.

Laliotis: Addressing participants earlier, ruling PASOK party Secretary Costas Laliotis said it was true that the Greek government, the Greek EU Presidency and premier Costas Simitis were making efforts to shape a common reference framework for all European states, saying that a different policy may arise out of the composition of varying views.

PASOK and the Greek government, he stressed, were against war. The war in Iraq was entirely beyond international legality, Laliotis said, while referring to the initiative for common defense by the four European states was viewed in positive terms by PASOK.

Alternate FM: EU enlargement a major issue: Alternate Foreign Minister Tassos Yiannitsis, whose country currently holds the EU presidency, on Tuesday told participants at the European Socialist Group meeting in Athens that European Union enlargement was a major issue and any cancellation or reversal would create an enormous rift and regression within the bloc, despite existing problems.

Yiannitsis said that the Greek presidency did not hide its annoyance over the stance of certain candidate countries on the Iraq issue, but a regression on the enlargement issue would appear vindictive.

''The enlargement with ten member-states involves indeed numerous challenges on the economic as well as on the political arena'', he said.

With regard to the EU's common defense policy Yiannitsis said that Europe, and more specifically the ''15'' and the Greek presidency, were confident that a common external and defense policy was significant for Europe's progress, adding that the initiative announced by Belgium, Germany, France and Luxembourg on a common defense was very important and had to succeed.

''It is very important to see how this initiative will develop in order to succeed'', he said, adding ''We are studying all elements and we will see how we are going to handle it''.

Yiannitsis said there was a need for solidarity within the enlarged Europe, adding that this should not be expected to happen ''overnight'', but to grow through the bloc's common policies such as the Common Agricultural Policy and the Structural Funds.

The European Socialist Group on Monday began its four-day meeting in Athens to discuss war in Iraq, the crisis within the EU and the role the bloc is called to play in the post-war era.

[03] Greece repeats opposition to Turkish invasion of Iraq

Athens, 02/04/2003 (ANA)

"We will express our opposition. When Turkey claims there is a threat against it we accepted this argument in good faith. But the party under threat cannot also be an attacker," Protopapas stressed.

The spokesman also said that obstacles to sending humanitarian aid to Iraq appeared to be gradually receding.

Asked whether a United Nations general assembly might be called, Protopapas claimed to be unaware of any such demand but said that Greece would support any initiative for a truce in Iraq.

[04] Erdogan says Cyprus to be discussed with Simitis next week

ANKARA 02/04/2003 (ANA – A. Abatzis)

He also said Turkish Foreign Minister Abdullah Gul will visit the Turkish-occupied areas of northern Cyprus next Thursday, “where he will prepare for positive steps”.

Speaking to his ruling party’s Parliamentary committee, Erdogan referred to the high-profile Annan peace plan for Cyprus, “saying that it is well-known the plan ran into a stalemate, but that does not mean we will abandon the search for a solution.”

The recently sworn-in Turkish prime minister also countered what he called reports by “certain mass media” blaming the Turkish side for rejecting the Annan peace. He claimed, rather, that the Greek Cypriot side actually rejected the plan unveiled at The Hague.

[05] FM holds telephone talks with Turkish counterpart on Iraq

Athens, 02/04/2003 (ANA)

Greek diplomatic sources said that by order of Papandreou, a Greek EU presidency delegation is already in Ankara to discuss with Turkish officials the undertaking of a joint EU-Turkish initiative in dealing with humanitarian problems in Iraq.

The same sources said that Alex Rontos, head of the Greek delegation, is accompanied by EU commission officials.

[06] Alternate FM comments on d' Estaing's letter to Simitis

Athens, 02/04/2003 (ANA)

Speaking of the letter to Socialist Europarliament Group Eurodeputies in Athens, Alternate Foreign Minister Tassos Yiannitsis said that Greece supports the election of the European Commission President by the Europarliament.

''The European Commission should be strengthened as an institution,'' Yiannitsis said, adding that an element of this strengthening will also stem from the election of its president by the Europarliament.

[07] FM stresses Turkey's difficulties to socialist Eurodeputies

Athens, 02/04/2003 (ANA)

''We should support the European course of Turkey, so that it should not be isolated, it should take up its responsibilities, but it should not entangle in the war of Iraq and especially in the Kurdish issue,'' Papandreou said.

He added that if Turkey opens the Kurdish issue it will isolate itself from the European Union and the United States.

Responding to a relevant question concerning Syria and Iran, Papandreou said that ''we wish for the establishment of democracy in different parts of the world, but of course not through a war''.

[08] Greece confirms US request for talks with EU troika, NATO officials

Athens, 02/04/2003 (ANA)

The EU troika consists of Greek Foreign Minister George Papandreou, who represents the Greek EU presidency, EU High Representative for Common Foreign Policy and Defense Policy Javier Solana and EU External Relations Commissioner Chris Patten.

Protopapas said the Greek side had no objections to the meetings requested by Powell this coming Thursday, on the sidelines of a meeting in Brussels, but noted that ''it would have been good if Mr. Powell had held these talks before the war''.

[09] State Department Human Rights report 2002 released

WASHINGTON 02/04/2003 (ANA - T. Ellis)

In the introduction to the report, the State Department said that "the push for stronger anti-Trafficking in Persons (TIP) legislation was enhanced in the past year in many European countries", citing as an example that "the governments of Turkey, Greece and Bulgaria all passed specific articles on trafficking in their criminal codes".

In the 29-page country chapter on Greece, the report noted that Greece is a "constitutional republic and multiparliamentary democracy" whose government "generally respected the human rights of its citizens".

It added, however, that there were problems in some areas, such as abuse of illegal immigrants and Roma by security forces, overcrowding and harsh conditions in some prisons, and legal limits on the freedom association of ethnic minorities, although "some leaders of minority religions noted a general improvement in government tolerance, but others reported difficulty with the authorities".

It further said that "laws restrictive of freedom of speech remained in force, and some legal restrictions and administrative obstacles on freedom of religion persisted".

Mention is also made of discrimination against ethnic minorities and Roma, as well as of instances of xenophobia against Albanians, trafficking in women and young girls for the purpose of position, chiefly from countries of Eastern Europe, and reports that foreign children were forced into begging.

The report noted, however, that measures and works for the Roma had been introduced, including housing, subsidized mortgage loans, infrastructure in Roma camps, employment schemes, cultural and sports activities, and welfare allowances.

It further said that the government adopted a new anti-trafficking law which made trafficking a special criminal offense, imposed harsh penalties on traffickers, and called for shelters and medical assistance for victims of trafficking.

[10] Diamantouros sworn in as new EU ombudsman

LUXEMBOURG 02/04/2003 (ANA)

Diamantouros served as ombudsman of Greece from 1998 to 2003 and was elected by the European Parliament on Jan. 15, 2003.

The new ombudsman during his speech stressed that he was glad for the honor made to him by the election and noted the great responsibility he felt in conducting his work at the post.

[11] EU funds to help Greek economy, FinMin says

Athens, 02/04/2003 (ANA)

Speaking to reporters, after a meeting with Prime Minister Costas Simitis to discuss progress and absorption of community funds, Mr Christodoulakis stressed that the success of implementing this year's budget was not judged by its performances in the first months of the year, but with its performance at the end of a fiscal year.

The Greek minister reiterated his concern over a continuing war in Iraq and stressed that the global economy was facing great difficulties, a fact that was increasing international uncertainties.

Prime Minister Costas Simitis also met with Development Minister Akis Tsohatzopoulos.

Mr Tsohatzopoulos told reporters, after the meeting, that the government's priority was the development of regional Greece.

[12] Education ministry has 2nd highest absorption of 3rd CSF funds

Athens, 02/04/2003 (ANA)

[13] Eurozone, Greek PMIs fall to contraction levels in March

Athens, 02/04/2003 (ANA)

Greek PMI also fell sharply to 47.5 points in March, from 51.3 in February, below the 50 points reading separating growth and contraction in the sector. It was the second time in the history of the report that the seasonally adjusted index fell below the 50 points reading.

Eurozone's PMI fell to 48.4 in March from 50.1 in February, with the production index falling to 50.4 from a three-month high of 51.6 in February. Austria, Spain, Germany and Italy recorded increases in the index, while France, Greece, the Netherlands and Ireland recorded declines.

The new orders index recorded the biggest monthly fall since January 2002, while the employment index recorded the biggest fall of the last three months remaining on a declining trend since June 2001.

The Netherlands, Germany and France recorded the biggest falls in the eurozone.

[14] Greece not invulnerable to European-wide economic problems, gov't notes

Athens, 02/04/2003 (ANA)

Though the Greek economy was shielded to some extent, the spokesman stressed that ''no armor is invulnerable'' and that the country was also affected by international pressures, especially in tourism.

''It is not a coincidence that the prime minister is holding meetings on the implementation of the 3rd Community Support Framework programs every week. We will have to run if we want to keep growth rates high,'' Protopapas stressed.

[15] Greek fiscal status seen intact after EU enlargement

Athens, 02/04/2003 (ANA)

''Despite greater needs created by enlargement, our country will not suffer adverse repercussions, even to the slightest degree in 2004-2006, even if there is no definitive agreement," Floridis told reporters after an EU meeting in Athens.

"On the contrary, all anticipated financing under structural funds along with subsidies in the agricultural sector will remain intact," he said.

[16] Bank of Greece cautiously pessimistic over eurozone economy

Athens, 02/04/2003 (ANA)

The central bank's governor, Nikolaos Garganas, testifying before the Parliament's Economic Affairs Commission on monetary policy in the country, said he was cautiously pessimistic over economic developments in the eurozone, stressing that forecasts for economic growth in the eurozone and Japan were pessimistic for 2003, with an average annual growth rate of 1.0 percent, a forecast that could lead to economic recession.

The Greek central banker stressed that although it was impossible to make any credible predictions over the prices of fresh fruit and vegetables and oil prices, because of the war in Iraq, the Greek consumer price index, excluding volatile pro-ducts, could reach 3.9 percent. Mr Garganas also predicted a worsening in the country's trade deficit in 2003 as a result of the war and the appreciation of the euro currency.

"There are no special measures to shield an economy against such pressures," Mr Garganas said, adding that "what it is needed is adherence to a cautious fiscal policy, a monetary stability policy and promoting structural reforms."

Mr Garganas added that the economy also needed a more flexible labor market and stressed that to achieve "convergence of Greek inflation with the European average, labor cost must also converge...We have a rigid labor market and that is one of the reasons for having a high unemployment rate in Greece despite high economic growth rates. We don't have to follow the extreme American model, but changes are needed," he noted.

The central banker stressed that "real wages must not rise above productivity levels."

Mr Garganas dismissed talk that Greek banks were reporting false balance sheets and stressed that "the solvency of the banking system is very satisfactory, with one of the highest capital adequacy factors in Europe".

He reiterated that Greek households were not overdebted to banks.

"Housing loans high prices may cause problems, but we have no way of intervening," Mr Garganas said.

[17] Greece expects increased tourist arrivals from Belgium-Luxembourg

Athens, 02/04/2003 (ANA)

GNTO said that despite a total 8.8 percent decline in Belgian tourists' reservations towards all foreign destinations, Greece was recording a 16.4 percent increase this year compared with 2002, followed by Spain (+5.4 percent), France (+5.1 percent) and Portugal (+1.6 percent), while Turkey and Italy were recording falls of 9.0 percent and 7.0 percent, respectively.

GNTO said that Greece was ahead in total reservations from Belgium in 2003, after three years of lagging behind Turkey.

Greek tourism authorities said that Belgian tourists have made increased reservations for Greek holidays during the Easter period, with Belgian tour operators adding six extra flights to the islands of Kos, Corfu and Crete.

Luxair, Luxembourg's largest travel organization, also announced two more charter flights to Crete and Rhodes. Luxair recently restarted the Luxembourg-Athens daily flight and is reporting full seat capacity.

[18] Council of Europe approves report on farm policy overhaul

Athens, 02/04/2003 (ANA)

The report by Nikolaos Floros, a deputy of Greece's ruling PASOK party, said that growth in farming and development of the countryside were mutually dependent.

In addition, emphasis should be placed on the quality of foodstuffs, accompanied by information for consumers.

Floros' report will be taken into account in talks between the Council of Europe and the European Union on the future of the EU's common agricultural policy.

[19] Economist conference to focus on EU-US ties

Athens, 02/04/2003 (ANA)

The conference will also be addressed by Albanian Prime Minister Fatos Nano, Montenegrin Prime Minister Milo Jukanovic, Serbian Prime Minister Zoran Zivkovic and Former Yugoslav Republic of Macedonia (FYROM) premier Branko Crvenkovski.

Other speakers will include U.S. Ambassador to Athens Thomas Miller, in addition to a videotaped speech by U.S. Secretary of State Colin Powell and EU High Representative for Common Foreign Policy and Defense Policy Javier Solana.

Greek speakers will include Foreign Minister and EU ministers' council president George Papandreou, Greek Finance Minister Nikos Christodoulakis, Development Minister Akis Tsohatzopoulos, main opposition New Democracy leader Costas Karamanlis, Coalition of the Left and Progress party leader Nikos Constantopoulos and Athens Mayor Dora Bakoyianni.

Apart from politicians, the conference will be attended and addressed by top executives of major Greek and multinational companies.

[20] Greek stocks end slightly up on Tuesday

Athens, 02/04/2003 (ANA)

The general index ended 0.50 percent higher at 1,474.65 points, with turnover a low 45.1 million euros.

The Telecommunications, Construction and IT Solutions sector scored the biggest percentage gains of the day (2.27 percent, 1.81 percent and 1.72 percent, respectively), while the Food-Beverage (0.50 percent), Banks (0.36 percent) and Industrials (0.25 percent) suffered the heaviest percentage losses.

The FTSE/ASE 20 index for blue chip and heavy traded stocks rose 0.16 percent, the FTSE/ASE MID 40 index ended 0.67 percent higher, the FTSE/ASE SmallCap 80 index jumped 1.28 percent and the FTSE/ASE 140 index ended 0.36 percent up.

Broadly, advancers led decliners by 220 to 80 with another 57 issues unchanged.

Derivatives Market Close: Turnover at 52.8 mln euros Wednesday

Equity Index Futures: