Athens News Agency: Daily News Bulletin in English, 05-04-26

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

CONTENTS

[01] Bank of Greece sees higher inflation, slower growth in 2005

[02] PM Karamanlis in Washington on May 20, meeting with President George W. Bush

[03] Deputy FM Valinakis hopes signing of EU accession treaty of Romania and Bulgaria will strengthen Balkan countries' European prospects

[04] Molyviatis meets with Deputy Russian FM Chizhov

[05] Papoulias briefed by FM on foreign policy issues

[06] European Commission to send notice to Greek authorities on main shareholder issue

[07] Extradition of Apostolos Vavylis to Greece requested officially, justice minister says

[08] Albanian leader in FYROM sees name issue as 'lost' in international academic circles

[09] Next generations must be brought up with peace and friendship, Turkish PM says

[10] All CBMs decided between Greece and Turkey to be completed, Turkish General Staff announces

[11] More violations of Greek airspace reported; Turkish warplanes intercepted

[12] Island of Kastelorizo names President honorary resident

[13] Greek Tourism Deputy Minister says China visit a success

[14] Greek SMEs seek meeting with PM over shopping hours plan

[15] Greece, Bulgaria in transport talks

[16] Passenger traffic at Athens international airport up 8 per cent in 1st qtr of 2005

[17] Greece seeks urgent EU action to combat Chinese textiles imports

[18] Stocks drop in blue-chip selling

[19] Coast guard intercepts 25 illegal immigrants plus two dead off Chios

[20] Athens mayor inaugurates new shelter for the homeless in city centre

[21] Cyprus satisfied with EU position on Turkey

[22] Cyprus condemns property exploitation in occupied areas

[01] Bank of Greece sees higher inflation, slower growth in 2005

Athens, 26/4/2005 (ANA)

Presenting the bank's annual report, the Greek central banker welcomed the government's effort to deal with fiscal imbalances and stressed that an updated stability program was a positive first step in this process.

Garganas said his forecast of an average inflation rate around 4.0 percent in 2005 was a cause for concern and stressed the inflation rate would affected by how state-owned enterprises and the business world would react to higher taxation.

The central banker said the Greek economy was at a turning point and recommended a series of interventions and reforms in the public sector, labor market, and the pension system with the aim to avoid a protracted slowdown of growth rates in the country. He underlined the need to strengthen competitiveness and to introduce a well-planned framework of structural reforms.

Garganas also said a government decision to begin a dialogue over the reform of the country's pension system was a positive development, adding that Greece -more than any other European country- was facing a significant demographic challenge. In indirect, remarks, he rejected the continuation of early retirement programs and said the average retirement age in the country was 59.5 years. The integration of immigrants in the official economy was not enough to solve the pension problem, Garganas said.

He recommended extended reforms in the labor market and in the domestic markets of product and services, with the aim to boost competitiveness and economic productivity. He urged for bold reforms to boost productivity in the country, such as measures to enhance competition through a more relaxed regulatory and tax environment, offering of incentives to new businesses and a transition to the economy of knowledge. Garganas said there were significant margins to boost competition through the deregulation of economic sectors and greater progress in privatizations.

Bank of Greece governor said unemployment was the most significant problem facing the Greek economy and urged for a new integrated framework of reforms in the labor market.

The central banker urged consumers to avoid taking unnecessary debt and to better balance their future income development.

Bank of Greece figures showed that housing loans grew by 25.8 percent in the first quarter of 2005, while consumer loans grew 33.9 percent over the same period.

Trade unions will not participate in pension reform dialogue: Greece's largest trade unions on Monday said they would not participate in a dialogue starting on Tuesday over reforming the country's pension system.

GSEE, the country's largest trade union, said it would not participate in a dialogue between Economy and Finance Minister George Alogoskoufis, Labor Minister Panos Panayiotopoulos and the Economic and Social Commission (OKE) and ADEDY, civil servants' union, since OKE could not replace the country's social agencies, while it noted that a dialogue over the pension system should include the Prime Minister, government officials and political parties' representatives.

ADEDY has already rejected a government call to begin a dialogue on the issue, saying that independent experts recently noted that the pension system would be face any problems for at the least the next 25 years.

[02] PM Karamanlis in Washington on May 20, meeting with President George W. Bush

Athens, 26/4/2005 (ANA)

The official announcement said that the prime minister's visit reflects the excellent level of bilateral relations between Greece and the United States, as well as the continuously widening cooperation between the two countries for the promotion of democracy, prosperity and security in the wider region of southeastern Europe and the Middle East.

Karamanlis had scheduled a private visit to the United States, since on Sunday May 22, in Boston, he will be awarded an honorary doctorate by the Tufts University from which he graduated.

The prime minister had visited the United States exactly a year ago and had met again with President Bush at the White House.

[03] Deputy FM Valinakis hopes signing of EU accession treaty of Romania and Bulgaria will strengthen Balkan countries' European prospects

BRUSSELS 26/4/2005 (ANA - M. Spinthourakis)

Valinakis said that for Greece the gradual incorporation of the Balkans in unified Europe constitutes an option of strategic importance, adding that the impending accession of Bulgaria and Romania is a development of fundamental significance in this direction.

As regards the Balkans in particular, the deputy foreign minister stressed the satisfaction of Greek diplomacy on the completion of the feasibility study prepared by the EU on the European prospects of Serbia-Montenegro.

He also stressed the need for the continuation of intercommunal negotiations for the prospects of Kosovo, as well as the need for the Kosovo Serbs' participation in general consultations concerning its future.

Satisfaction was also expressed by the Greek side on references made in the Council's finalized text of decisions concerning the Former Yugoslav Republic of Macedonia (FYROM), in which the need for solving the problem of FYROM's name issue is noted, as well as the need for its further democratization, particularly in light of the opinion to be presented by the Commission in autumn on FYROM's EU accession application.

[04] Molyviatis meets with Deputy Russian FM Chizhov

Athens, 26/4/2005 (ANA)

Afterwards, the top Russian diplomat said the two countries are working together closely on a variety of regional issues, whereas bilateral ties are constantly being upgraded. Among others, Chizhov cited the recently signed agreement for construction of the long-awaited Burgas-Alexandroupoli oil pipeline.

[05] Papoulias briefed by FM on foreign policy issues

Athens, 26/4/2005 (ANA)

The latest developments over the FYROM "name issue" and the possibility of a restart of negotiations for a Cyprus solution were also discussed.

[06] European Commission to send notice to Greek authorities on main shareholder issue

BRUSSELS 26/4/2005 (ANA - V. Demiris)

The issue was discussed on Monday at a meeting of the heads of EU commissioners' offices, who are preparing the agenda for the European Commission plenum's regular weekly meeting.

According to well-informed Commission sources, the Commission's notice does not question article 14, paragraph 9 of the Greek constitution. Objections only concern the two laws. Namely, the existing law by the previous government and the current government's legislation on the main shareholder.

[07] Extradition of Apostolos Vavylis to Greece requested officially, justice minister says

Athens, 26/4/2005 (ANA)

Vavylis was arrested in Bologna, Italy, last Friday after being sought for his alleged role in scandals related to the Greek Orthodox Church.

"Following his arrest, I am in a position to tell you that the entire procedure has finished, according to which we are requesting that Vavylis comes to Greece. The relevant prosecuting authority contacted the corresponding Italian one and the request has already been forwarded to Italy. I can assure you that Vavylis, sooner or later, will be brought before Greek justice. He will have a fair trial just like every citizen," the minister said.

Commenting on a possible delay in extradition procedures, Papaligouras said "his extradition might be delayed. I am not in a position to say for how long, since at this moment Vavylis has a pending issue with Italian justice as he has been sentenced to seven years in prison. Our effort will be to see that he will be in Greece as soon as possible, even to serve a part of that sentence in a Greek prison."

In the event that the extradition procedure is delayed, Papaligouras said that investigating authorities will have the possibility of communication in Italian prisons.

Also referring to comments that Vavylis was interrogated by the Italian authorities in an irregular way, the minister said "there is nothing irregular. Such cooperation is anticipated between the judicial authorities of European Union member-states."

[08] Albanian leader in FYROM sees name issue as 'lost' in international academic circles

SKOPJE 26/4/2005 (ANA - N. Fragopoulos)

In an interview appearing in the FYROM newspaper "Utrinski Vesnik" on Sunday, Xhaferi also called for a change in FYROM's national anthem and flag, saying that they did not reflect the multi-ethnic composition of the tiny republic.

According to Xhaferi, international scientific circles are currently "convinced that present-day 'Macedonians' are not descended from ancient Macedonians and are not even linked to the historic events of the Middle Ages and the later era."

He claimed that the conflict surrounding the constitutional name of the country, which is disputed by Greece, and related issues date back to when FYROM first became an independent entity and the "creation" of a Slav-Macedonian nation, which was combined with the attempts of local academic and political circles to establish a strong 'Macedonia' identity with historic roots.

"They appear not to have understood the message that has gone out: that "Macedonianism" is a functional agreement and not something real with an independent existence," Xhaferi said.

The DPA leader also predicted that Greece was highly unlikely to back down from its demands for a clear differentiation between modern and ancient Macedonia, while Greece could be a useful ally and support for FYROM's future.

"I believe that, if Macedonia is at a disadvantage with respect to the past, it has the benign support of all the factors involved, even from the Greek factor, in order to have a good future," he said.

Greece objects to the use of the name 'Macedonia' by its northern neighbor on the grounds that it might encourage expansionist designs against Greece, given that there is a northern Greek province on FYROM's border that has the same name. Greeks are also incensed by the attempts of FYROM Slavs to "usurp" and claim descent from the famous Macedonian general of antiquity Alexander the Great, whose ancient kingdom lay roughly within the borders of the present-day Greek province of Macedonia.

[09] Next generations must be brought up with peace and friendship, Turkish PM says

ISTANBUL 26/4/2005 (ANA - A. Kourkoulas)

"We must have deeper thoughts and, extending our hands, we must bring up the next generations on the basis of peace and friendship and not with hatred and animosity," the Turkish prime minister said.

Referring to events taking place recently at the islets of Imia, Erdogan said "those who want to ruin friendship and the effort to develop our relations must not succeed. We must develop our relations."

He further pointed out that "certain circles cannot stand these positive developments. We must spoil this game of theirs."

Erdogan went on to say "I call both on my friend (Greek Prime Minister Costas) Karamanlis and on the Greek press to help", adding that "certain limited incidents must not be exaggerated. They must not be exaggerated by neither the Turkish media nor the Greek media. On the contrary, in providing support, you must make an effort so that we can lead this process in a positive direction."

[10] All CBMs decided between Greece and Turkey to be completed, Turkish General Staff announces

ISTANBUL 26/4/2005 (ANA - A. Kourkoulas)

The measures which began to be implemented as of 2002 will be continued and completed, Vice Admiral Muzahit Sislioglu said during a press briefing at the Turkish General Staff in Ankara.

"We attribute importance to confidence-building measures. We believe that they will create a climate of confidence between the military authorities of the two countries," the vice admiral said.

Replying to questions on the special communications line between the national operations centers recently decided, he pointed out that "technical work is continuing at both headquarters."

[11] More violations of Greek airspace reported; Turkish warplanes intercepted

Athens, 26/4/2005 (ANA)

None of the Turkish warplanes had filed flight plans, while 10 violations of Greek national airspace were also reported in the northern and central Aegean.

According to reports, every Turkish warplane was intercepted and recognized by a Greek fighter plane, whereas one mid-air engagement was reported.

[12] Island of Kastelorizo names President honorary resident

Athens, 26/4/2005 (ANA)

The relevant ceremony will be held during the weekend when Papoulias will arrive on the island for the Easter holiday.

Minister of the Aegean and Island Policy Aristotelis Pavlidis, Dodecanese Prefect Yiannis Maheridis and MPs from the Dodecanese will be greeting Papoulias upon his arrival.

Papoulias will be arriving on Holy Saturday and staying through Easter Tuesday.

[13] Greek Tourism Deputy Minister says China visit a success

BEIJING 26/4/2005 (ANA)

Liaskos, accompanied by Greek National Tourism Organization's head Aristides Kalogeropoulos, visited the Beijing International Travel Tourism Management 2005 fair and inaugurated Greek tourism's advertising campaign in Beijing and Shanghai.

The Greek minister said the country's dynamic presence in China's market would continue since Greece would be the honored country in BITE (Beijing International Tourism Exhibition) fair to be held June 22-24.

The announcement was made together with Beijing's tourism minister Yu Chamgjiang. The Greek officials met with WTTC officials, while Liaskos gave interviews to local TV stations and to the country's press.

[14] Greek SMEs seek meeting with PM over shopping hours plan

Athens, 26/4/2005 (ANA)

Small- and medium-sized enterprises are threatening with mobilizations unless the government changed its position over the introduction of extended shopping hours around the country. GSEBEE recently said shopping hours in Greece was one of the longest in Europe and the longest in tourist regions.

[15] Greece, Bulgaria in transport talks

SOFIA 26/4/2005 (ANA/B Borisov)

The two sides said that demonstrating the growth of cooperation between the two countries was a pilot rail project linking cities and border posts in the two countries, reducing traveling time.

[16] Passenger traffic at Athens international airport up 8 per cent in 1st qtr of 2005

Athens, 26/4/2005 (ANA)

According to data announced on Monday by the airport's company, during the first three months of this year "Eleftherios Venizelos" airport received 2.7 million passengers, while the number of visitors who visited Athens for tourism increased by 22 per cent, reflecting Greece's increasing popularity as a tourism destination.

Passenger traffic from the Middle East and from eastern and central Europe also increased by 24 per cent and 18 per cent respectively. From North America the increase was 19 per cent while the only market which showed a decline (-14 per cent) was from the Far East, due to the catastrophic earthquake and tsunami which struck the region on December 26, 2004.

Domestic traffic in the first quarter of 2005 increased by 1 per cent.

[17] Greece seeks urgent EU action to combat Chinese textiles imports

Athens, 26/4/2005 (ANA)

Making the request at an informal meeting of EU trade ministers was G Mergos, secretary general of the finance ministry.

Textiles account for a major chunk of Greek exports, contributing to employment, income and the economy of entire towns, especially in the country's north, Mergos said.

The EU could take measures in line with the bloc's competitiveness policy, he added.

[18] Stocks drop in blue-chip selling

Athens, 26/4/2005 (ANA)

The Athens general share index closed at 2,905.64 points, marking a decline of 0.89%. Turnover was 181.4 million euros.

The FTSE/ASE-20 index for high capitalization shares ended 0.99% down; the FTSE/ASE-40 for medium cap stocks closed 0.07% lower; and the FTSE/ASE-80 for small cap shares finished 0.87% down.

Of stocks traded, declines led advances at 183 to 86 with 64 remaining unchanged.

[19] Coast guard intercepts 25 illegal immigrants plus two dead off Chios

Athens, 26/4/2005 (ANA)

According to the survivors, there had originally been 32 passengers in the wooden boat when they had set off from the coast of Turkey but they were rammed by a larger vessel that had then abandoned them.

A search to find the rest of the missing illegals is continuing, while a second search has been launched around the 'Gerontas' promontory on Farmakonissi, where coast guard officers intercepted another 16 illegal immigrants earlier on Monday. Of these, two were transferred to the health centre on the island of Leros with slight injuries, while another two men were reported missing.

[20] Athens mayor inaugurates new shelter for the homeless in city centre

Athens, 26/4/2005 (ANA)

According to Bakoyannis, it will upgrade the quality of care provided by the city for citizens in need, providing both food and social support that involves more specialized staff.

The mayor stressed the municipality's efforts to save resources by building up permanent partnerships with government agencies, non-governmental organizations, foundations and unions in Greece and abroad that are involved in these areas.

As an example, she announced that the Greek Red Cross will be donating its First-Aid Centre building on 3rd September Street to the municipality for the needs of the city's homeless and destitute.

The inauguration ceremony was attended by Greek Red Cross president Andreas Martinis, as well as a number of officials, municipal councilors and representatives of the Church of Greece.

[21] Cyprus satisfied with EU position on Turkey

Cypriot Minister of Foreign Affairs George Iacovou on Monday expressed the Republic's satisfaction over the adoption by the EU General Affairs Council, as point A without discussion, of the EU's common position that the Luxembourg presidency will present to Turkey during Tuesday's Association Council.

Iacovou said the government was pleased with the content of the common position, especially the references to the relations of the Republic of Cyprus with Turkey, and expressed appreciation towards the member states that participated in forming the position and the members that showed goodwill to reach a compromise.

The common position text was initially agreed on at the Permanent Representatives' meeting in Brussels last week. On Monday, the General Affairs Council adopted it.

Referring to the protocol to extending Turkey's customs union to the ten new member states, including Cyprus, the EU's common position urges Ankara not only to sign it but also to ratify and implement it.

Furthermore, this is the first time that an official EU document refers to the need to normalize Turkey's bilateral relations with all member states.

The document says that the EU expects Turkey to continuously support efforts for a Cyprus settlement in the framework of the UN and in accordance with EU principles.

It also mentions the ban on Cypriot products in Turkey and the fact that ships flying the Cyprus flag or coming from Cypriot ports are not allowed to dock in Turkish ports. Ankara is called on to lift any obstacle in the transport and commerce sectors.

The EU furthermore encourages Turkey to alter its policy regarding Cyprus' participation in various international organizations or treaties, where Ankara has been blocking Cyprus' membership, taking

into advantage the fact that unanimity is demanded to accept a new member.

Turkey is also called on to fully implement European Court of Human Rights decisions soon.

[22] Cyprus condemns property exploitation in occupied areas

NICOSIA 26/4/2005 (CNA/ANA)

put an end to this violation of international law.

Government spokesman Kypros Chrysostomides has also stressed that this exploitation would not have been prevented even if a UN-proposed solution plan had been accepted and recalled a European Union call on Ankara to respect judgments of the European Court of Human Rights (ECHR) relating to property rights.

''The government condemns every exploitation of property and is doing all it can to prevent this flagrant violation of international law and human rights and the contempt of Court decisions,'' the spokesman said, adding that respect for these rulings is one of Copenhagen criteria which all EU aspiring members must fulfill.

During this period, he said, illegal immigration is on the rise, Greek Cypriot properties are being usurped with an alarming rate and there is a demographic change taking place in occupied Cyprus.

Responding to questions, he said the number of illegal Turkish settlers has increased to 140,000 from an estimated 100,000 previously.

The spokesman said the verbal attacks by Mehmet Ali Talat against Cyprus President Tassos Papadopoulos were ''unwarranted'' and he wondered if Talat's aim it to torpedo any attempt to resume negotiations for a political settlement.

Fending off criticism that property exploitation would not have taken place, had a UN solution plan been accepted, Chrysostomides said that Lord David Hannay (former UK special representative) acknowledged in his book that the complexity of the UN proposals regarding settlement of property disputes would not have been that far different from Turkish designs on the matter.

''The continuing exploitation of property in the occupied north is a policy Ankara is pursuing and it would not have been averted, had the Annan plan been approved,'' he said.

Responding to questions, he said that the European Union had called on Ankara to comply with ECHR decision in the case of Greek Cypriot Titina Loizidou and allow her access to her property for its peaceful enjoyment.

''It takes a political decision to implement the Court ruling and such a decision has not yet been taken with regard to this specific case,'' he added and wondered why the international community tolerates such violation of law and order.

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