Athens News Agency: Daily News Bulletin in English, 05-10-04

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

CONTENTS

[01] Achievement of agreement on beginning of EU-Turkey accession negotiations a historic moment, FM says

[02] Turkish foreign minister arrives in Luxembourg, opening ceremony for Turkey's EU accession negotiations begins

[03] British FM hails EU-Turkey agreement

[04] British EU Presidency clarifies paragraph of negotiation framework

[05] EU-Turkey relations entering historic phase, Turkish FM says

[06] U.S. Secretary of State Condoleeza Rice intervenes in EU-Turkey consultations, communicates with Cyprus President Tassos Papadopoulos

[07] Athens rules out renegotiation of paragraph 5 in EU-Turkey talks framework

[08] PM Karamanlis says government moving firmly ahead with reforms

[09] Zero tolerance for corruption, PM Karamanlis tells ND parliamentary committee

[10] PM 'sugarcoats anti-social policies', SYN leader says

[11] Parliament reopens plenary session after summer recess sessions

[12] PASOK party's Parliamentary Group to convene on Tuesday

[13] Gov't committed to helping Africa over long-term, Deputy FM says

[14] Education minister leaves for Paris to attend UNESCO general conference

[15] Greek European and Foreign Policy Foundation president says compromise on issue of FYROM's name must be found as soon as possible

[16] Austria's parliament president to meet with Ecumenical Patriarch

[17] Gov't submits 2006 draft budget plan to parliament

[18] Greek unemployment fell to 9.6 pct in 2nd quarter, yr/yr

[19] Gov't, industrialists seek ways to boost women's employment

[20] Labor union's directorate briefs President Karolos Papoulias on current labor, economic and social problems facing salary earners

[21] National Bank delegation to meet foreign institutional portfolios in London

[22] Greece welcomes rise in trade with Arab countries

[23] Emirates Airline announces direct flights between Athens and Dubai

[24] Local government in northern Greece opposed to operation of Bulgarian gold mines

[25] Stocks rise, break through resistance

[26] Development minister visits Cultural Centre of 'Alexandros S. Onassis' foundation in New York

[27] Balkan mayors agree to cooperate in the fight against crime

[28] Exhibition of objects retrieved from 'Titanic' to open at Zappeion Hall

[29] Main opposition leader hosts dinner for victorious national basketball team

[30] Gov't takes steps to boost Greek cuisine

[31] EU to fund renovation of Mt. Sinai monastery

[32] WWF calls on gov't to protect endangered turtle

[33] First division football results, standings

[34] EP President: EU will continue to work for Cyprus reunification

[01] Achievement of agreement on beginning of EU-Turkey accession negotiations a historic moment, FM says

LUXEMBOURG, 4/10/2005 (ANA/M. Spinthourakis)

Molyviatis said this agreement was the result of a long and difficult procedure. Greece and Cyprus have succeeded in fully safeguarding all their pursuits on the basis of legally binding and institutional texts.

The foreign minister added that a new era is beginning in relations between Greece and Turkey, an era of "peace and stability" which shall benefit both the Greek and Turkish people.

Molyviatis also expressed the hope that the "bad past" in relations between Greece and Turkey can change. He added that Greece's strategic target is to turn "its neighbor-hood" into a region of peace, security and stability. This can only be achieved through the European path. Consequently, he said, Greece desires the accession of all the Balkan countries and of Turkey to the EU.

As regards a statement by the British Presidency, the foreign minister termed it purely an interpretorial one, noting that it has no legal impact. In parallel, however, he said that from now on Turkey will not be able to prevent the participation of Cyprus in the European Defense and Security Policy as well, without this having consequences for its course towards a united Europe.

Lastly, the foreign minister expressed satisfaction over progress being achieved regarding Croatia's course towards the EU.

[02] Turkish foreign minister arrives in Luxembourg, opening ceremony for Turkey's EU accession negotiations begins

LUXEMBOURG, 4/10/2005 (ANA)

EU foreign ministers had late Monday evening reached an agreement which cleared the way for talks with Turkey to go ahead, after marathon talks overcame Austrian and Turkish objections.

Gul was met by British Foreign Secretary and President of the Council of Ministers Jack Straw at the entrance of the building where the EU ministers held their talks Sunday and Monday.

[03] British FM hails EU-Turkey agreement

LUXEMBOURG, 4/10/2005 (ANA/V.Demiris/CNA)

Straw said 30 hours of consultations and only three hours of sleep worth it, pointing out that Turkey has a long road ahead until the full membership.

''It is now more than 40 years since the prospect was first held out to Turkey. It is going to be a long road ahead but I have no doubt that if bringing Turkey in is the prize it is worth fighting'', said Straw as the formal launch of the talks was expected to take place in the early hours of Tuesday.

''We are all winners: Europe, the existing member states, Turkey and the international community'', the President of the Council said.

The accord cleared the way for talks with the Turkey to go ahead, after marathon talks overcame Austrian and Turkish objections.

He thanked Enlargement Commissioner Olli Rehn and High Representative Javier Solana, the UK diplomatic service and all his European counterparts, noting that ''every enlargement makes EU stronger''.

In their statements Rehn and Solana thanked, on their part, the British Presidency outlining the stages of the procedure that brought Turkey and the EU to Monday's development.

[04] British EU Presidency clarifies paragraph of negotiation framework

LUXEMBOURG, 4/10/2005 (ANA/M.Spinthourakis/CNA)

Former paragraph 5 stipulated that Turkey, in the period leading up to its accession, must "gradually harmonies its policies toward third countries and its positions within international organizations, -including those related to the participation of all EU member-states in these organizations-, with the policies and positions of the EU.

According to sources, the British Presidency's statement is as follows: ''Paragraph 7 (former paragraph 5) of the negotiating framework, which is covering all relevant international organizations can not be interpreted as prejudicing the autonomy of decision making and rights of any of those international organizations or of their members or of the members - states of the European Union.''

According to the same sources, the Council's legal service, from which advice was sought following a Greek initiative, determined that the British Presidency's statement is not legally binding.

[05] EU-Turkey relations entering historic phase, Turkish FM says

ANKARA, 4/10/2005 (ANA/A. Ambatzis/A. Kourkoulas)

Gul spoke of an "agreement" between the EU and Turkey on the issue of the negotiating framework and stressed that he does not wish to go into details. The Turkish minister added that "many EU leaders supported the beginning of negotiations."

Replying to questions by the press, Gul said that "what is important is the fact that the prospect of full accession is crystal clear and there are no alternative situations such as special relations."

Earlier in the evening, a meeting was held on the assessment of the final plan on the negotiations framework between Turkish Prime Minister Tayyip Erdogan, Gul and Ali Babacan who has undertaken the responsibility of continuing accession negotiations.

Diplomatic sources said Erdogan had telephone conversations with Italian Prime Minister Silvio Berlusconi and German Chancellor Gerhard Schroeder.

Turkish foreign ministry spokesman Namik Tan also had telephone contact with officials of the British EU presidency.

The Turkish prime minister spoke by phone with U.S. Secretary of State Condoleezza Rice with the purpose of "saving Turkey's accession course to the EU", according to the Reuters news agency.

The American minister reassured Erdogan that the negotiating framework proposed does not abolish NATO's procedures.

[06] U.S. Secretary of State Condoleeza Rice intervenes in EU-Turkey consultations, communicates with Cyprus President Tassos Papadopoulos

WASHINGTON, 4/10/2005 (ANA - T. Ellis)

Replying to a question by the Athens News Agency (ANA), State Department spokesman Sean McCormack said that Rice communicated "yesterday" with Cyprus President Tassos Papadopoulos. McCormack explained that the leader of U.S. diplomacy conveyed to President Papadopoulos "our view that the EU's processes must not become involved with NATO's decision-making process."

McCormack underlined Washington's position that it is up to countries belonging to NATO to take decisions concerning NATO's members. He also mentioned that Rice pointed out to President Papadopoulos that "a democratic Turkey, which is going ahead with reforms and which has firm roots in the European and inter-Atlantic alliance, constitutes a positive development for Europe, the U.S. and for Turkey itself."

The State Department spokesman also confirmed that Rice telephoned to Turkish Prime Minister Tayyip Erdogan on Monday, while she also had telephone conversations with many counterparts of hers over the past crucial days, including Jack Straw of Britain and Abdullah Gul of Turkey.

Speaking during his regular press briefing, the State Department spokesman reiterated the support of the U.S. for Turkey's accession to the EU, stressing once again that this is for the benefit of all.

PASOK party official praises agreement on beginning of EU-Turkey accession negotiations: Main opposition PASOK party foreign policy, security and defense sector chief Christos Papoutsis on Monday hailed the agreement reached on the beginning of accession negotiations between the European Union and Turkey.

"The European Union took a decision of historic importance today. Turkey's European course will be a long course of reforms, changes and adjustments to the acquis communautaire, which will lead to the family of the peoples of Europe on the basis of the principles and values of peace, democracy, solidarity, joint security and prosperity," he said.

"We supported and we support the accession prospect of Turkey, believing that it can contribute decisively to democratization, relations of good neighborliness, friendship and cooperation and to joint efforts for economic development and social progress," he added.

Papoutsis further said "we call on the government of Mr. Karamanlis to explain to the Greek people for which reasons specific and binding timetables and specific and strong security valves are not included in the negotiating framework between the European Union and Turkey, with which all issues of national interest for Greece and the Republic of Cyprus will be safeguarded."

[07] Athens rules out renegotiation of paragraph 5 in EU-Turkey talks framework

LUXEMBOURG, 4/10/2005 (ANA/V. Demiris)

"For us it is an absolutely deep red line that there be no modification to the text, which has been agreed for the past 15 days, of the negotiating framework for the [EU member-states] with Turkey, which from the Greek point of view meets and fully guarantees the goals and priorities of the Greek side," Koumoutsakos said.

According to the spokesman, Greece's had given a clear and virtually monosyllabic response to attempts to modify paragraph 5 within the EU General Affairs Council, stressing that a text that had been agreed upon by the 25 EU member-states 15 days ago could not now be subjected to any sort of change. Greece considered paragraph 5 absolutely locked and agreed for many days, he said.

Greek Foreign Minister Petros Molyviatis had also reiterated this position in all bilateral meetings with the British EU presidency, Koumoutsakos added.

He also confirmed earlier reports by diplomatic sources, which said that Molyviatis had warned the British presidency that changing paragraph 5 would mean re-opening negotiations on a whole series of issues, which Athens would bring to the negotiating table, from scratch.

The spokesman said the EU General Affairs Council would convene again at 17:00 Athens time in a bid to find some sort of compromise, noting that the final outcome was hard to predict.

As the official starting date for EU-Turkey accession talks dawned on Monday, the process snagged on two unexpected obstacles that seemed capable of postponing the start of negotiations until well into the future.

One stumbling block was Austria's insistence that Turkey's negotiations should not automatically lead to full membership of the bloc. Another were last-minute objections raised by Ankara to paragraph 5 in the negotiations framework, which is considered particularly important for the interests of Greece and Cyprus.

The Greek spokesman said that some progress had been made on issues raised by Austria regarding the goal of EU-Turkey accession talks but without fully overcoming the obstruction.

The clause in question stipulates that Turkey, in the period leading up to its accession, must gradually harmonies its policies toward third countries and its positions within international organizations, including those related to the participation of all EU member-states in these organizations, with the policies and positions of the EU.

In effect, paragraph 5 indirectly requires Turkey to lift the obstacles it has raised so far to Cyprus - now a member-state of the EU - joining NATO and other international organizations.

SYN leader on Turkey's EU negotiation framework, Cyprus issue: Coalition of the Left, Movements and Ecology (SYN) President Alekos Alavanos said that a better deal could have been negotiated regarding the Cyprus issue referring to Turkey's European Union negotiation framework.

Alavanos expressed his disagreement with Austria's stance, saying that "the European Union is not just for Christians."

"The tremendous amount of bargaining that is going on today whether Turkey, after entry negotiations, will finally become an EU member state, shows that we could have done much better negotiating regarding the Cyprus issue," he added.

"Today we could have had a much shorter and binding timeframe so that Turkey, following the referenda on the [UN Secretary General Kofi] Annan plan, would accept a solution to the Cyprus issue based on the UN's principles and resolutions," Alavanos concluded.

[08] PM Karamanlis says government moving firmly ahead with reforms

Prime Minister Costas Karamanlis on Monday reassured that his government was firmly moving ahead with reforms and changes in all sectors, with society as its ally, to render Greece a modern and efficient State, adding that the ministries had the obligation of continuing the effort for transparency and stamping out bureaucracy and wasteful spending.

Addressing a meeting of the ruling New Democracy party parliamentary group, Karamanlis referred to the streamlining of the DEKO public utilities and organizations in order to reinforce their social role, with respect for the taxpayers' money and increased productivity, as well as healthy competition.

Karamanlis said he had taken over, from the preceding government, a difficult web of challenges and problems, adding "we know where w want to go, we have a concise action plan, and are proceeding with prudence and daring".

On foreign policy, he reiterated that Greece backs Turkey's EU prospect, had waged a battle with Cyprus to secure the two countries' interests in the text of the framework being set by the EU for Turkey's accession course.

He noted that, provided Turkey met all the conditions put forward by the EU, it had the right, at the end of a long course, to become a full member of the EU.

Monday's meeting of the parliamentary group had a symbolic, anniversary nature, as it marked the 31st anniversary of ND's founding.

[09] Zero tolerance for corruption, PM Karamanlis tells ND parliamentary committee

Prime Minister Costas Karamanlis on Monday reiterated that his government had zero tolerance for phenomena of corruption, addressing a meeting of his ruling New Democracy party's parliamentary committee, while he also criticized main opposition PASOK of opting for "practices of other eras".

He said that the citizens could not be inconvienced by demands for 'envelopes' by civil servants who did not respect their vows, referring to corruption, adding that "we are in a head-on collision with them".

Karamanlis said that the government would exhaust all its severity with respect to such public functionaries and on all illegal practices. "We will not back down in this clash," he said.

"PASOK hides behind denial and reaction. Instead of using arguments it resorts to cries and accusations," Karamanlis said.

"It proposes conflict and division, it makes claims trying to blame others for problems it created," he added.

The premier continued his criticism of the main opposition, saying that "They dare to talk about hirings when they had made 'Green cafes' a standard practice; these people who gave 'green cards' to their members to help them find jobs, who'd pass over competent individuals because they didn't belong to PASOK."

ND Secretary: New Democracy Secretary Evangelos Meimarakis said that in the 18 months that the party has been in office it has not made any serious political mistakes, adding that any wise leader would have made the same decisions as Karamanlis' administration.

Referring to the role of ruling MPs, Meimarakis said that they must be better informed when dealing with the public, able to persuade citizens that ND knows where it is leading the country.

While Meimarakis acknowledged that communication between MPs and ministers has improved in the past 18 months, he noted that there are still some problems, which he predicted would be resolved soon.

[10] PM 'sugarcoats anti-social policies', SYN leader says

Coalition of the Left, Movements and Ecology (SYN) President Alekos Alavanos accused Prime Minister Costas Karamanlis of trying to 'sugar-coat' the "anti-working class and anti-social policies" of his government when he addressed the ruling New Democracy party's parliamentary group on Monday.

Alavanos accused the government of adopting policies that hurt the majority and benefited the few, while continuously falling short of expectations.

"The issue for the Greek people is not to choose the lesser of two evils - New Democracy or PASOK. The issue for the working people is to not continuously be burdened in order to benefit major capital and to serve a partisan government and favoritism," he added.

[11] Parliament reopens plenary session after summer recess sessions

Parliament on Monday commenced its second and final full session of the year, with a blessing by Archbishop Christodoulos of Athens and All Greece, accompanied by the members of the standing Holy Synod.

Parliament president Anna Psarouda-Benaki said elections would be held in the 300-member House on Tuesday for the three deans and six secretaries of the body, of which two deans and four secretaries would be from the ruling New Democracy party, one dean and one secretary from the main opposition PASOK party, and one secretary from the third largest party represented in parliament, the Communist Party of Greece (KKE).

The first plenary session will be held on Wednesday, with a debate of a finance ministry bill on raises for public sector pensions, and other provisions.

National economy and finance minister George Alogoskoufis presented the parliament president with the draft of the state budget for fiscal year 2006.

[12] PASOK party's Parliamentary Group to convene on Tuesday

Main opposition PASOK party leader George Papandreou will chair a meeting of his party's Parliamentary Group on Tuesday, while party deputies will also be speaking after his address.

Meanwhile, PASOK spokesman Nikos Athanasakis on Monday criticized Prime Minister Costas Karamanlis for the content of his address at a meeting of the ruling New Democracy party's Parliamentary Group earlier in the day, saying that "reality disproves every day what he says."

Athanasakis said that Karamanlis "made a display of unreliability again today as regards his election commitments, unreliability concerning the daily practice of his government and his ministers who publicize every day an action that draws popular reaction."

According to PASOK's spokesman, "the account of the government's 18-month term of office so far is poor: stretching the account and repeating the same things from one speech to another does not add anything. On the contrary, it makes the lack of work more evident."

[13] Gov't committed to helping Africa over long-term, Deputy FM says

Government aid to Africa focuses on education, infrastructure and dealing with diseases such as AIDS and malaria, rather than offering band-aid solutions, Deputy Foreign Minister Evripidis Stylianidis said after his meeting with Richard Hunlede, head of the International Federation of Red Cross & Red Crescent Societies' (IFRC) Africa department on Monday.

"The Red Cross is a strategic partner of Hellenic Aid, the foreign ministry's development aid agency," Stylianidis said.

He reiterated Prime Minister Costas Karamanlis' commitment to achieving the European Union goal of development and humanitarian aid to represent 0.56% of GDP by 2010.

"Our primary target is Africa and we will work not only with GRC but also with the International Red Cross, in order to ensure that our actions are more effective," Stylianidis said.

Hunlede said that he and Stylianidis did not discuss money but rather a long-term effort to support Africa and to help the continent achieve sustainable development.

[14] Education minister leaves for Paris to attend UNESCO general conference

Education Minister Marietta Yiannakou left for Paris on Monday, at the head of a Greek delegation, to attend UNESCO's general conference. The minister will be making an address during the general discussion on Tuesday, focusing on the importance of education in promoting democratic principles and protecting the rights of man in the framework of a society that respects differentiation.

UNESCO's general conference convenes every two years and constitutes the international organization's relevant organ for taking decisions determining its policy.

According to an announcement by the education ministry, all of the organization's member-states are participating in the general conference, while the countries which are not UNESCO member-states can participate as observers.

Issues to be discussed at the education committee include strengthening cooperation and planning for the implementation of the "Education for All" program.

A roundtable discussion on education will also be taking place on October 7-8 in the framework of the general conference, with the participation of Education Ministry Secretary General Andreas Karamanos.

[15] Greek European and Foreign Policy Foundation president says compromise on issue of FYROM's name must be found as soon as possible

The president of the Greek European and Foreign Policy foundation (ELIAMEP) and special advisor to the EU Commission president Loukas Tsoukalis, in a statement published in the Skopje-based newspaper "Devnik" on Monday, said the Former Yugoslav Republic of Macedonia (FYROM) and Athens must find an acceptable compromise on the issue of the neighboring country's name as soon as possible.

Tsoukalis said that it would be good for both countries if the issue of the name was solved, because it has negative repercussions for bilateral relations, while the problem also has an indirect impact on FYROM's European prospects.

He also said that according to his judgment the European Commission's assessment November 9 concerning the granting to FYROM the status of an EU candidate state will refer to the landlocked country's name.

He added that it would be good if a compromise was to be found earlier and not after waiting 5-10 years and proposed the finding of a compromise before this coming December.

[16] Austria's parliament president to meet with Ecumenical Patriarch

ISTANBUL, 4/10/2005 (ANA/A. Kourkoulas)

Members of the delegation will include MPs Hannes Missethon, Renate Csorgits, Ulrike Lunacek; Ambassador Alexis Wintoniak, head of EU and International Service; and Joseph Wirnsperger, head of international relations.

[17] Gov't submits 2006 draft budget plan to parliament

The government will seriously consider any fruitful proposals over next year's budget, Economy and Finance Minister George Alogoskoufis said on Monday.

Speaking to reporters, after submitting the 2006 draft budget plan to Parliament President Mrs. Anna Psarouda-Benaki, Alogoskoufis stressed the government aimed to have a fruitful debate in the parliament's economic affairs commission and to agree on a final budget plan.

The Greek minister presented the general aspects of the draft budget plan to a meeting of New Democracy's parliamentary group and stressed that "Greek economic prospects for 2006 were favorable despite a negative international environment".

Alogoskoufis said economic policy priorities for 2006 would be to restore fiscal balance, ensuring long-term sustainability of fiscal condition, improving productivity through solving structural problems, improving business environment and competitiveness, boosting employment and promote policies to prevent social exclusion. The draft budget plan envisages reducing the country's fiscal deficit below 3.0 percent of GDP next year, containing public debt and strengthening social cohesion.

The Greek minister said 2005 was a crucial year for the economy as the government aimed to promote structural reforms, boosting international competitiveness, reducing unemployment and improving services to citizens. Alogoskoufis said the economy was positively responding to the government's policies and stressed that economic growth was 3.6 percent despite rising oil prices, unemployment fell while real wages rose by 2.0 percent.

Gov't aims to further cut its general government deficit in 2006: The Greek government aims to further reduce its general government deficit with its 2006 budget, Economy and Finance Minister George Alogoskoufis said on Monday.

The Greek minister presented the 2006 draft budget plan envisaging a speedier reduction of the country's public debt, containing consumer spending and implementing all pre-election commitments.

Next year's budget envisages a growth rate of 3.8 percent from 3.6 pct this year, and increases in investments, private consumption and real wages by 1.7 pct.

Alogoskoufis said that 2006 would be a crucial year for the economy and stressed that big steps have been taken to reduce deficits. The Greek minister noted that deficit would be reduced through containing public spending and combating tax evasion.

The 2006 budget envisages a 7.6 percent increase in credits to the Labor ministry, 8.4 pct to Interior ministry, 7.0 percent to Education ministry, 6.1 pct to National Defense, 8.8 pct to Agricultural ministry, 7.6 pct to Merchant Marine ministry and 7.5 pct to Tourism ministry.

The Public Investments Program is expected to reach 8.7 billion euros in 2006 from 7.7 billion this year.

Direct tax revenues are forecast to rise by 6.0 percent to 19.046 billion euros, while indirect tax revenues to rise by 8.4 pct to 25.612 billion euros.

The government will prepare the Post Savings Bank and the Athens International Airport for listing in the Athens Stock Exchange while it will seek a more efficient use of the country's ports.

Next year's budget is based on a forecast that average oil price will range from 55 to 60 US dollar per barrel in 2006.

Gov't plans decline in public debt 2005-2006: The government is planning a decline of more than four percentage points in the public debt from 2004 to the end of 2006.

Under the government's draft for the 2006 budget released on Monday, the central government debt at the end of 2005 is anticipated to total 214,528 million euros, or 119.2% of gross domestic product, against 201,244 million euros in 2004, representing 120.4% of GDP.

In 2006, the debt is estimated at 226,177 million euros or 116.9% of GDP, down 2.3 percentage points against 2005 and more than four points versus 2004.

The general government debt at the end of 2005 should total 193,435 million euros, or 107.4% of GDP from 182,702 million euros in 2004, representing 109.3% of GDP.

In 2006, the debt is forecast to total 203,457 million euros or 105.2% of GDP, down 2.2 percentage points of GDP from 2005.

A report prefacing the budget states that for the first time a decline in the debt/GDP ratio at the level of both central and general government is not due entirely to high rates of growth but also to a slowdown in the growth rate of the debt.

State borrowing plan for 2006 includes focus on long-term bonds: The state's borrowing plan for 2006 includes the issue of long-term bonds to create greater depth in the Greek yield curve, according to a report accompanying next year's budget, which was released on Monday.

Other features are the issue of reference bonds with three- five- and 10-year terms, and the issue of treasury bills.

In addition, a strategy will be devised to attain greater liquidity in the 20-year index-linked reference bond; or new paper of a different term will be issued if market conditions warrant the move.

Strategic issues will also be made in euros or other currencies, mainly in the form of private placements, to take advantage of market opportunities and widen the investment base.

Opposition party blasts government's 2006 budget: The Coalition of the Left, Movements and Ecology said on Monday that the government's budget for 2006 presented earlier in the day represented "an extreme neo-liberal monetarist model" that hurt society.

"This draft budget is in its entirety unreliable and fraudulent. Its calculations for a reduction in the deficit are a form of accounting alchemy that was employed by the (former) PASOK government that (ruling) New Democracy criticized when it was in the opposition," Coalition spokesman Panayiotis Lafazanis said in a statement.

Trade unions see tight austerity budget for 2006: The General Confederation of Employees of Greece (GSEE) on Monday said the government had presented a tight austerity budget for 2006.

"This ferocious austerity budget has been devised along class lines and is hostile to workers and pensioners," GSEE president Christos Polyzogopoulos said in a statement.

The draft budget was given to parliament's financial affairs committee earlier in the day.

[18] Greek unemployment fell to 9.6 pct in 2nd quarter, yr/yr

Greek unemployment fell to 9.6 percent in the second quarter of 2005 from 10.2 percent in the corresponding period in 2004, the National Statistics Service said on Monday.

NSS, in its regular report, said the unemployment rate for women was 15.2 percent in the April-June period, more than double compared with the unemployment rate for men, while young people -aged 15-29- recorded the highest unemployment rates at 18.8 percent.

The number of Greek unemployed totalled 466,835 in the second quarter, of which 36 percent said they sought a full-time job. Unemployment among foreigners was 8.3 percent over the same period.

Western Macedonia (18.4 pct), Epirus (11.5 pct) and Central Macedonia (11.1 pct) recorded the highest unemployment rates in the country, while Crete (6.1 pct) and Southeran Aegean (8.1 pct) the lowest rates.

'Unfortunately unemployment a social reality'

in the country, PASOK party official says: Main opposition PASOK party employment, social affairs and health sector chief Evangelos Venizelos, commenting on Monday on announcements made by the National Statistical Service on unemployment in the second quarter of the year, said that "unfortunately, unemployment is a social reality in our country which no statistics can beautify."

He added that "if the government believes that with unfair and unilateral class options, with the dismantling of labor relations and with legislative bills such as the one on overtime work and working time, it can provide a reply to the anxiety of the unemployed and of all those who feel the threat of unemployment, it is deeply underestimating both the intelligence and the instinct of the Greek people."

Venizelos further said that "after 19 lost months without a development and employment policy we are returning to the same statistical data, behind which however, as it appears by the National Statistical Service's analysis itself, the major structural problems are concealed which the government does not even touch, because it has neither a national development strategy nor an integrated employment policy."

Coalition party disputes NSS jobless figures, says true number is much higher: The Coalition of the Left, Movements and Ecology party on Monday disputed lower unemployment figures announced by the National Statistics Service (NSS), saying the true number of jobless was much higher.

Dimitris Stratoulis, in charge of labor policy for the party, said the figures quoted did not take into account thousands of unemployed people that were currently enrolled in various job-training programs nor an estimated 100,000 'hidden' unemployed who were not listed anywhere because they had been out of work for more than two years and no longer received unemployment benefit.

"It is shameful to talk about a reduction in unemployment when thousands of workers are laid-off every day from dozens of businesses that close and from some 3,500 businesses that have moved production to the Balkans. When we know that only 20 per cent of those that were laid off or unemployed managed to find work, where are the rest? Did they evaporate for reasons of political and statistical convenience?" Stratoulis asked.

[19] Gov't, industrialists seek ways to boost women's employment

Minister of the Interior, Public Administration and Decentralization Prokopis Pavlopoulos discussed women's role in the economy and in the labor market during his meeting with industrialists on Monday.

Attending the meeting were Secretary General for Equality Evgenia Tsoumani, Federation of Greek Industries (SEB) President Odysseas Kyriakopoulos, General Confederation of Light Industry and Commerce (GSEBEE) Dimitris Asimako-poulos, Industrial and Commercial Chamber of Athens President Drakoulis Fountoukakos and others.

After the meeting, Pavlopoulos noted that Greece lags behind its EU peers in terms of the percentage of women working in the workforce.

In terms of women's unemployment, he said that the EU average stood at 9%, while Greece's rate stood at 16%.

Pavlopoulos announced a new program - with a budget of ¬ 13 million - to be launched by the ministry in November which will provide incentives to businesses who hire women.

"Governmental policy is particularly focusing on combatting the lack of equality in the job market," Tsoumani said.

However, aside from government intervention, social partners and businesses must also play an active role in improving women's status in the workplace, she added.

On his part, Kyriakopoulos noted that the issue concerns the entire Greek population since a great share of the country's human resources remains untapped.

Kyriakopoulos praised the ministry for its initiative and promised to cooperate in order to "formulate specific measures which we believe will be able to address this major challenge."

[20] Labor union's directorate briefs President Karolos Papoulias on current labor, economic and social problems facing salary earners

The directorate of the General Confederation of Workers of Greece (GSEE) on Monday briefed President Karolos Papoulias on labor, economic and social problems currently facing salary-earners.

GSEE President Christos Polyzogopoulos said after the meeting that the President showed understanding and indicated that he ascertains the same difficulties which labor unions are also ascertaining, but his institutional role does not allow him to take a stand on one or the other side.

The GSEE president said that Monday, the day on which the new labor rule is being implemented, is "a bad day which working people will remember for many years since this law will lead to a decrease in their remuneration by up to 20 percent."

Polyzogopoulos further said that the combination of the high cost of living, the great increase in fuel prices and small increases in salaries will create conditions in which low wage earners and low pension earners will not be able to cope.

[21] National Bank delegation to meet foreign institutional portfolios in London

A National Bank delegation, headed by president and managing director Takis Arapoglou, will have meetings with foreign institutional portfolios in London in the framework of roadshows on the bank's economic prospects and activities in major international fiscal markets.

Messages being received by the National Bank's administration from the roadshows are considered very positive both for the Greek economy and their confidence in the course of the bank and its main economic indicators.

Speaking last Friday after holding contacts in the United States, Arapoglou said that what is being observed this year is a "fundamental change in climate" by foreign institutional investors towards the Greek economy, compared to last year when many queries existed, which emanates from the Greek economy's high growth rates in comparison to the average of European Union member-states and from reforms being carried out.

On the question of the National Bank, foreign institutionals are expressing their satisfaction over the implementation of the bank's three-year business plan without any deviation and are also showing interest in the bank's international activities, particularly in the wider region of southeastern Europe.

Foreign institutionals are currently participating with an approximately 33 percent share in the bank's share capital, when in March last year this share was only 18 percent.

The target of the National Bank's administration is to further strengthen its presence in southeastern Europe and to become the most powerful regional fiscal group in this wider region.

Further organic development is being planned in every country in the region in which the bank has a presence, while opportunities for buyouts and mergers are also considered. The bank's activities in the region contribute to the group's profit-making by about 10 percent.

[22] Greece welcomes rise in trade with Arab countries

Deputy Foreign Minister Euripides Stylianidis on Monday welcomed a doubling in trade with Arab countries over the last eight years, saying that the government was willing to respond to any requests from the countries for economic cooperation.

In 1997 the trade total was 2.06 billion euros, rising to 4.0 billion euros in 2004, Stylianidis told a conference on trade and investment in the Arab world arranged by the Arabic-Greek Chamber and Federation of Greek Industry (SEB).

"Despite a major increase in our exports in this period, especially to these countries, the rate of growth of imports from the Arab countries was more than double the rate of increase of our exports. The rise in our imports came to 106.52%, or 1.67 billion euros, while the increase in our exports was 53.52%, or 263.37 million euros," he noted.

In January-April 2005, Greece's largest trade partners in the Arab world were Saudi Arabia, the United Arab Emirates, Libya and Egypt.

Stylianidis called on Greek companies to make contact with the Arab market.

In addition, Greek aid to the region was 92 million euros in 2000-2004. Of the total, 81 million euros was in development aid (technical aid, construction projects and infrastructure), with the remaining 9.0 million euros in humanitarian aid, he noted.

The conference included a round-table debate on promoting Greek products and investments in the Arab countries. The session was attended by the ambassadors and charge d'affaires of all Arab countries represented in Greece, who called on domestic firms to take the risk and invest in their countries. Hazards were mostly isolated instances within a climate of overall security, they said.

The head of SEB, Odysseas Kyriakopoulos, outlined Greece's advantages as an investment venue.

[23] Emirates Airline announces direct flights between Athens and Dubai

The Emirates Airline announced on Monday that five of its six weekly flights between Athens and Dubai will be direct flights as of October 1. The Emirates Airline will be scheduling direct flights between Athens and Dubai every Monday, Tuesday, Wednesday, Friday and Sunday, as well as one flight every Saturday which will continue to be carried out via Larnaca in Cyprus.

Direct flights will have their departure times from Eleftherios Venizelos airport in Athens set at 18.05 and landing times at Dubai's international airport at 23.30. Return flights will have 09.35 as their departure time from Dubai and their landing time in Athens will be 13.30 (local times).

[24] Local government in northern Greece opposed to operation of Bulgarian gold mines

The town council of the Municipality of Soufli in northern Greece expressed its unanimous opposition to the operation of gold mines in southern Bulgaria, in a vote held on Monday.

The council was initially informed by Soufli Mayor Minas Stergiou of companies trying to establish gold mines in Krumovgrad, just 40 km from the Greek border.

The town council made its decision based on the environmental impact such mines would have on the Arda and Evros Rivers.

The council also decided to support residents and organizations in the neighboring country who are also protesting the creation of gold mines.

[25] Stocks rise, break through resistance

Stocks finished higher for the eighth straight session with the market topping resistance at 3,400 points for the first time since December 2000, traders said. The session began 55 minutes late due to a technical problem.

The Athens general share index closed at 3,403.62 points, marking a rise of 0.64%. Turnover was 235.1 million euros.

The FTSE/ASE-20 index for high capitalization shares ended 0.46% up; the FTSE/ASE-40 for medium cap stocks closed 1.14% higher; and the FTSE/ASE-80 for small cap shares finished 0.29% up.

Of stocks traded, declines led advances at 146 to 134 with 52 remaining unchanged.