Athens News Agency: Daily News Bulletin in English, 05-10-08

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

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

CONTENTS

[01] FinMin defends economic policy choice

[02] Prime Minister outlines Greek economy achievements at dinner for ECB's executive board

[03] Deputy FinMin Regouzas resigns post

[04] Deputy FM attends 'Friends of Cohesion' meeting

[05] PASOK party leader criticizes government, says budget 'up in the air'

[06] Main opposition leader presents PASOK's proposals on education

[07] PASOK proposal aims to provide schoolchildren computer access

[08] Education ministry finds discrepancies between PASOK's words and actions regarding education

[09] Coalition leader criticizes EU Commissioner's stance on economic issues

[10] Czech Republic's chief of staff to visit Greece next week

[11] DM says armed forces factor of stability and peace, former PM calls for conscription at the age of 18

[12] Deputy FM meets with US ambassador

[13] ECB chief: No major reason to hike rates despite inflationary pressure

[14] Employment and finance ministries prepare Greek Strategy Report on Pensions

[15] Greek inflation rose to 3.9 pct in September, yr/yr

[16] Monastiraki-Aegaleo subway line ready in early 2007

[17] Greek stocks end slightly higher on Friday

[18] Concert dedicated to Theodorakis' 80th anniversary to be held in Germany

[19] Cypriot president to honor Theodorakis

[20] Quadripartite meeting in Athens on illegal immigration, drugs, organized crime

[21] Shelter for abused women and children opens in Athens

[22] Albanian authorities arrest 7 police officers in Schengen visa forgery ring

[23] Cyprus President: Turkey's obligation to achieve Cyprus settlement secured

[24] President expects UN move, will not consent to any solution

[01] FinMin defends economic policy choice

ATHENS, 08/10/2005 (ANA)

Speaking to reporters, Alogoskoufis said the government took over a tragic situation which had to be dealt with to avoid a fiscal imbalance and missing the goals of a Stability and Growth Pact. The Greek minister stressed the government consciously opted for a mild adjustment policy, a policy leading to growth, more employment and supporting social cohesion.

Greece's fiscal deficit is falling from 6.6 pct of GDP in 2004 to 3.6 pct this year and it is expected to fall to 2.8 pct in 2006, while economic growth was 3.6 pct and unemployment fell by one percentage point, Alogoskoufis said.

The Greek minister stressed that a 2006 draft budget plan reflected a government success in achieving fiscal restructuring through a reduction of deficits and promotion of structural measures.

Alogoskoufis underlined that a debt securitization plan would proceed according to Eurostat's regulations and noted that any differences over securitization plan in 2006 would be resolved by the EU Economy and Finance ministers' council.

New budget in freefall, with or without securitization, main opposition charges

Main opposition PASOK spokesman Nikos Athanassakis on Friday accused the government of subjecting the country through "yet another humiliation" after its general economic audit through the new draft budget submitted by Finance Minister George Alogoskoufis, which Athanassakis described as being "up in the air".

Athanassakis stressed that the government's draft budget for 2006 - with or without the securitization of uncollected revenue that has not yet been approved by the European Commission - was in "freefall".

[02] Prime Minister outlines Greek economy achievements at dinner for ECB's executive board

ATHENS, 08/10/2005 (ANA)

The ECB's executives held a meeting in Athens for the first time ever earlier in the day.

In an address, the prime minister said that the economic and monetary union constituted the "most advanced pylon of the common European edifice". "The introduction of the euro and the establishment of the European Central Bank is one of the most important landmarks in the course towards European integration," he added.

"It was the initial move in a comprehensive plan, a plan which had been worked out and is now being implemented with the aim of making European economy capable of meeting the global changes and challenges...The globalization of markets and the ever increasing international competition proved that the plan was, and is, not only feasible but also absolutely necessary, in all its extend, regarding both monetary stability and fiscal reform as well as structural changes," Karamanlis said.

Karamanlis said that the EU's monetary unification, the creation of a large common market and the establishment of a single currency entailed substantial benefits for the member countries of the Euro-zone. "The economies of our countries were relieved of the cost entailed by the 12 different currencies. Cross-border trade, commercial transactions and tourism movement were facilitated to a large degree. The medium-term and long-term interest rates were reduced and have been maintained at low levels, which significantly contributed to investments, growth, reduction of the cost of servicing the public debt. Significant stability was achieved in prices, as inflation in the Euro-zone, despite the unprecedented skyrocketing of international oil prices, is at a historic low. A more stable and efficient economic environment was created," he said.

The prime minister also referred at length to the impact of the EU's economic and monetary union (EMU) on Greece and the achievements of the Greek government in the sector of economy in the past 18 months.

"The monetary stability, but also the low interest rates of the euro, gave a substantial boost to private consumption and facilitated the servicing of the public debt," Karamanlis said, stressing, however, that the postponements and particularly the lack of reforms in the past had left intense marks on the operation of the State and the economy, but adding that the new government, that of his ruling New Democracy party (ND), with a sense of responsibility and respect to the Stability and Growth Pact, immediately pinpointed the chronic problems of the past and was developing effective policies to tackle them.

He noted that his government was applying a policy of mild fiscal adjustment so as to reduce the deficit to below the 3 percentage point mark by end-2006, was formulating a new developmental model based on encouraging healthy entrepreneurship, cooperation between the public and private sectors, constant improvement of quality, productivity and competitiveness, exploitation of the new advancements, technology, research and innovation, and economic outwardness.

The government was also proceeding, with determination and a sense of social responsibility, in reforms that have been necessary for many years, in order to render the Greek economy more productive, more competitive, and more out-reaching, he said.

It had further reduced the corporate tax brackets and simplified taxation procedures, introduced increased investment incentives and a uniform legal framework for collaboration between the public and private sectors, advanced reforms in the banking sector to make it more efficient and more competitive, reinforced flexibility in the labor market, limited and was continuing to reduce bureaucracy with respect to the establishment of new enterprises, was proceed with new denationalizations and liberalization of the energy market, and was applying policies for the gradual reduction of the country's oil dependence, for conservation of energy and for exploitation of renewable energy sources, the prime minister explained.

Karamanlis stressed that the investment environment in Greece had improved over the past 18 months and continued to improve consistently; that Greece had achieved a substantial fiscal adjustment in an environment of high domestic growth, which was expected to accelerate further in the immediate future; the public debt was de-escalating at a faster rate; exports and tourism traffic to Greece were increasing; and unemployment was presenting encouraging signs of reduction.

The country, the premier said, was moving decisively towards more efficient and speedier exploitation of its participation in the EMU. It was creating a new developmental environment that was more attractive for investments and friendly to business concerns. It was also playing a decisive role in the developmental efforts in SE Europe, and utilizing its geopolitical position and its membership in all the major international financial and political organizations with the aim of strengthening cooperation, growth and progress throughout the wider region.

Greece today was the most appropriate location for the headquarters and research centers of major European enterprises penetrating the neighboring countries. It was the gateway to Europe for Asia, the Middle East, and the eastern Mediterranean. It was the only EU and EMU member country in a region of substantial developmental prospects. Greece was gradually developing into an international energy hub, which reinforced not only the developmental prospects but also cooperation, stability and peace in the entire region, Karamanlis added.

[03] Deputy FinMin Regouzas resigns post

ATHENS, 08/10/2005 (ANA)

The resignation was accepted.

Regouzas' letter of resignation was due to be made public later in the day.

Regouzas' replacement would be announced within the next few days, according to reliable sources.

In a statement issued later Regouzas said that "following the constant and unjust attacks I have been subjected to recently, I have decided to resign from the position of deputy minister of national economy and finance in order to seek my vindication through the justice system".

"This action has only one purpose, to bring out the truth, without the obligations entailed by the post I hold today. The truth is one. The interests and their servants have been inconvenienced by the war I have waged. The truth will shine through Justice," the terse statement concluded.

Gov't rules out reshuffle in the wake of Regouzas resignation; political parties' reactions

Government spokesman Theodoros Roussopoulos on Friday announced the resignation of Deputy Finance Minister Adam Regouzas but ruled out the possibility of a general reshuffle in the wake of the minister's departure.

He said the minister's resignation had been accepted by Prime Minister Costas Karamanlis and that his successor to the finance ministry will be announced over the coming days.

He also stressed that the resignation had been made by Regouzas on his own initiative, without any prompting from the government.

The spokesman was asked repeated questions concerning an alleged "privileged relationship" between the outgoing minister and the owner of a regional television station, as well as the allocation of state advertising contracts, as revealed by a television program broadcast on Thursday night.

Roussopoulos denied any knowledge of any special relationship, saying that the government had issued a circular about the distribution of state advertising. The spokesman further reminded reporters that he had personally asked the National Radio and Television Council (ESR) to intervene concerning the exploitation of 090 numbers by television channels - an activity also attributed to the regional channel that Regouzas allegedly had links with - that had led to a prosecutor's investigation into the affair.

Political party reactions: Reacting to the news of the minister's resignation, meanwhile, the opposition parties expressed misgivings about whether this would solve underlying problems with transparency within ruling New Democracy.

Main opposition PASOK spokesman Nikos Athanassakis said that Regouzas was "just the tip of the iceberg" within the ruling party and criticized Prime Minister Costas Karamanlis for not seeking the minister's resignation long ago.

"Regouzas is leaving, but the Regouzas attitude remains in the ND government," Athanassakis said.

He also accused the government of following policies that benefited the few at the expense of the many.

The Coalition of the Left, Movements and Ecology party, through its spokesman Nikos Voutsis, said that Regouzas had accused "interests" of forcing him to resign when neither he, nor his political superiors, had made any reference to specific interests at a time when serious issues of transparency and graft in the crucial economic sector occupied public opinion.

He said the government had an obligation to either deny or confirm the statements of the outgoing minister, backed up by facts.

[04] Deputy FM attends 'Friends of Cohesion' meeting

BUDAPEST, 08/10/2005 (ANA)

Speaking after the meeting, attended by the deputy foreign and European affairs ministers of the "17" and of three additional countries, Valinakis said the message has three targets. Firstly, a relevant agreement to be acceptable to all at the European Council in December. Secondly, the passing of the message that the Cohesion Policy is a focal one for European unification. Thirdly, that enlargement must be funded in a way that will proportionately burden all the countries participating in this effort.

Valinakis added that these are also the aims on the part of Greece, which supports two major targets in Europe. Enlargement on the one hand, which is moving ahead with the recent beginning of accession negotiations with Turkey and Croatia and, on the other, the strengthening and deepening of the EU in the direction of political unification.

[05] PASOK party leader criticizes government, says budget 'up in the air'

ATHENS, 08/10/2005 (ANA)

Papandreou said that "we had pointed out that the budget is up in the air", adding that EU Commissioner Joaquin Almunia left the government and the finance minister exposed with clear indications that in 2006 there is no question of the method of converting uncollected revenues into securities being accepted.

The PASOK party leader further said that for the first time we have the non-acceptance of a national budget by the EU and this means that supervision by the EU will become more intense and will be prolonged in time.

Referring to foreign policy, Papandreou said the serious inadequacy of Karamanlis in handling foreign policy increases our concerning and skepticism over his capabilities of handling European relations and the course of Turkey's accession negotiations.

Papandreou also referred to day-to-day life, saying that despite election proclamations by the New Democracy party and the prime minister to the contrary, "clientele conceptions, social insensibility, neo-liberal authoritarianism, the lack of vision for the country, the lack of seriousness, the lack of ability and the continuous revocation with evident lies of promises to the Greek people are the characteristics of the New Democracy governance."

'Impudence has its limits', Roussopoulos responds to Papandreou: Government Spokesman Theodoros Roussopoulos, responding to statements earlier on Friday by main opposition PASOK leader George Papandreou in Corfu, said that "impudence has its own limits, limits overcome everyday by PASOK and its leader", adding that it was PASOK which followed a policy of "social heartlessness" when it was in power.

"Yesterday's social heartlessness, just like today's political hypocrisy and political opportunism, always bear PASOK's indelible seal," Roussopoulos said.

[06] Main opposition leader presents PASOK's proposals on education

ATHENS, 08/10/2005 (ANA)

One of the plan's priorities is to encourage "quality competition with the guarantee of public social monitoring," he said.

Papandreou underlined the need for education to lead to employment and thus both fields to communicate continuously.

"State university will be the main vehicle in tertiary education, but we are not afraid of other types of non-state institutions," he said, adding that he was in favor of state controls to secure public interest, the link with productive forces and social needs.

According to PASOK's president, funding of universities' research - both basic and applied - is necessary in order to generate new knowledge and innovative technology in the former case and to contribute to the country's economic progress in the latter case.

He said that according to PASOK, 40% of the 4th Community Support Framework must be invested in education.

Referring to the problems tertiary education currently faces, Papandreou cited bureaucracy, suffocatingly close ties with the central administration and ineffective management.

The 'drastic changes' PASOK proposes include that each university is allowed to shape its own objectives, strategy and structure; is able to establish new programs or departments through internal procedures; can find other sources of funding other than the state; provide universities with incentives to partner with renowned Greek scientists abroad who will commit to fixed-term teaching assignments.

Finally, in terms of university funding, Papandreou said that a simple and transparent system for distribution of funds is necessary and can be set up drawing on the experience of other EU member states.

State funding should be distributed in a way that will reward the best institutions, departments or research centers while helping those that need support to develop further, he concluded.

[07] PASOK proposal aims to provide schoolchildren computer access

ATHENS, 08/10/2005 (ANA)

Addressing the Conference of Deans, held on Corfu on Friday, Papandreou proposed the creation of a work group, comprised of deans and academics, which will explore ways of realizing this plan.

The concept originally belongs to Nicholas Negroponte, Wiesner Professor of Media Technology at the Massachussets Institute of Technology (MIT).

[08] Education ministry finds discrepancies between PASOK's words and actions regarding education

ATHENS, 08/10/2005 (ANA)

"PASOK's rejection of the Evaluation and Continuing Education bill which was recently passed in Parliament does raise questions," the statement read.

Further, the ministry stated that delays that occurred in the past have led to serious problems in terms of universities' educational and research operations.

In the statement, the ministry also stressed that Greece has significant human resources in scientific fields who can contribute, through better cooperation, to faster developments.

"We believe that the main opposition leader's views can contribute to this and we await his party's active participation on all levels of dialogue and cooperation," the ministry stated.

[09] Coalition leader criticizes EU Commissioner's stance on economic issues

ATHENS, 08/10/2005 (ANA)

Making particular note of the fact that the EU Commissioner for economic and monetary affairs had a socialist background, Alavanos stressed that "the bureaucrats in Brussels have not yet learned their lesson from the French referendum".

He urged main opposition PASOK to openly condemn Almunia's statements while in Greece, if it wanted to differentiate itself in the slightest from conservative ND.

[10] Czech Republic's chief of staff to visit Greece next week

PRAGUE, 08/10/2005 (ANA)

During his visit, Stefka will hold talks with Hinofotis on matters of bilateral military cooperation as well as issues of interest to NATO and the European Union.

He will be further received by Greece's national defense minister Spilios Spiliotopoulos.

[11] DM says armed forces factor of stability and peace, former PM calls for conscription at the age of 18

ATHENS, 08/10/2005 (ANA)

"Our armed forces, having full, equal and active participation and cooperation with our allies and the international organizations, such as the UN, the European Union and NATO, constitute a strong factor of stability and peace in the wider region of the southeastern Mediterranean," the minister said.

Spiliotopoulos also praised the role played by reservist organizations, stressing that "they preserve historical memory and honor those who struggled to enable us to live and breathe the air of freedom and democracy today".

Former prime minister and honorary president of the ruling New Democracy party Constantine Mitsotakis, speaking at the same event, called for conscription at the age of 18.

Mitsotakis was speaking during the delivery ceremony of the reservist gold cross awarded to him by the confederation of reservist officers and in the presence of Spiliotopoulos.

"The army is a big school. Today, what we need is to have people, men and women in the armed forces. And they are rare. We have a great shortage of recruits and great problems which must be resolved. I am glad to hear that the present government as well is coming back to the idea which I had proposed and which; unfortunately, we did not have time to implement for youngsters to be recruited at the age of 18. Both men and women should be recruited. And they should serve a year in the armed forces," Mitsotakis said.

"I feel it my duty to say what I am feeling now. Go ahead Mr. minister with recruitment at the age of 18. Recruit all without any exception. Restore order and discipline in the armed forces, give officers the right to command the military. Deal a blow at the various smart-alecks, the absentees who want to avoid recruitment or to serve where they want so that you can give the Greek people the feeling that all the Greeks, at last, are equal before the law," he added.

[12] Deputy FM meets with US ambassador

ATHENS, 08/10/2005 (ANA)

The two officials also exchanged views on energy and economic diplomacy issues.

[13] ECB chief: No major reason to hike rates despite inflationary pressure

ATHENS, 08/10/2005 (ANA)

"Retail prices are rising due to oil, and we are already above the 2.0% level that the ECB believes serves price stability," Trichet told Greece's Sky radion in an interview.

"At the same time, great care is required so that prices fall below 2.0%. An additional challenge is the fact that the rise in oil prices is leading the economy towards recession," the ECB chief said.

Of major concern was the moment when the rise in oil prices would roll down into pricing across the board, and into wages and other payments. "This would lead to a continuous rise in inflation," he said.

Another risk on the horizon was money in circulation and borrowing by business and households, which were rising fast and could act as a further inflationary pressure in the future.

"At present, the ECB has not diagnosed serious secondary pressure on prices, beyond primary pressure from oil," Trichet said.

He implied that the ECB would be ready to hike interest rates when that pressure emerged.

[14] Employment and finance ministries prepare Greek Strategy Report on Pensions

ATHENS, 08/10/2005 (ANA)

The report was prepared in the framework of the Open Coordination Method, agreed by the European Council in Laaken, in December 2001, with the prospect of coordinating European social insurance systems.

The National Report on Greece for 2005 sets a number of targets to achieve the adequacy and viability of the system.

The targets include securing a minimum income from pensions which, together with a series of benefits, structures and commodities, will enable a dignified standard of living.

They also include the grouping or merging of pensioning agencies and, wherever this is not possible, harmonizing or enacting unified pensioning preconditions or minimum social benefits.

[15] Greek inflation rose to 3.9 pct in September, yr/yr

ATHENS, 08/10/2005 (ANA)

NSS, in its monthly report, attributed the 3.9 percent increase in the consumer price index to: a 9.5 pct rise in housing prices, a 6.5 pct increase in transport, a 3.6 pct rise in clothing and footwear, a 3.5 pct increase in education and increases of 3.3 pct and 3.7 pct in alcohol drinks and tobacco and healthcare prices, respectively.

The statistics service said the monthly 2.2 percent increase in the consumer price index reflected a 13.8 pct in clothing-footwear prices, a 3.3 pct increase in education, a 5.1 pct rise in durable goods and a 1.3 pct increase in transport prices.

Greece's harmonized inflation rate rose 3.9 percent in September from the same month in 2004.

Manolis Kontopyrakis, National Statistics Service's secretary general, predicted that the average consumer price index would rise by 3.5-3.6 pct this year, while he predicted that there would be no further increases in the inflation rate in October if fuel prices remained at current levels.

Kontopyrakis, commenting on recent criticism over the accuracy of official statistics on unemployment, said the number of employed people was higher than before and stressed that unemployment was a two-year low. Kontopyrakis noted that statistics figures were not questionable as the statistics service was using a method compatible with Eurostat's regulations.

[16] Monastiraki-Aegaleo subway line ready in early 2007

ATHENS, 08/10/2005 (ANA)

Speaking to reporters, Souflias said the project, worth 600 million euros, would service 80,000 passengers daily and stressed that the trip would last six minutes.

The Greek minister said the Athens metro service would be extended from Aegaleo to Chaidari and to Piraeus.

Souflias defended an international tender for a project to build part of a national road network in Maliakos and said the ministry awarded the project to the best bidder.

[17] Greek stocks end slightly higher on Friday

ATHENS, 08/10/2005 (ANA)

The composite index rose 0.14 pct to end at 3,353.84 points, for a net loss of 0.83 pct in the week. Turnover was 211 million euros.

Sector indices ended higher, with the Mineral-Cement (1.05 pct), Investments (0.75 pct), Insurance (0.73 pct) and Food-Beverage (0.63 pct) scoring the biggest percentage gains of the day. The IT Solutions (0.99 pct), Telecommunications (0.80 pct), Metals (0.56 pct) and Wholesale (0.50 pct) suffered losses.

The FTSE/ASE 20 index for blue chip and heavy traded stocks rose 0.19 pct, the FTSE/ASE MID 40 index eased 0.04 pct and the FTSE/ASE SmallCap 80 index rose 0.37 pct.

Broadly, advancers led decliners by 136 to 122 with another 72 issues unchanged.