Athens News Agency: Daily News Bulletin in English, 06-05-25

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

CONTENTS

[01] PM: No additional tax measures necessary; deficit under 3%

[02] PM: Aegean collision should make Turkey review its stance

[03] PM and French counterpart discuss Aegean collision, Turkey's EU course

[04] Gov't on fate of missing pilot, demarche to Turkey

[05] PASOK party leader criticizes government's foreign policy

[06] U.S. encouraging Greece and Turkey to examine details of air accident

[07] NATO spokesman refers to collision between warplanes over Aegean

[08] FM Dora Bakoyannis to attend informal council of EU foreign ministers

[09] Danish royal couple pays official visit

[10] Commission president to address event marking 25th anniversary of Greece's EU accession

[11] KKE leader blasts ND, PASOK and SYN policies

[12] Finmin: Healthy outlook for 2006 budget

[13] Greece's economic sentiment index up in April

[14] Greece unveils web site to promote agro-tourism

[15] Greek trade deficit up 34.8 pct in Jan-March, yr/yr

[16] Olympics facility leased for 40 years

[17] Greenpeace expresses satisfaction over renewable energy sources draft bill

[18] First budget flight linking UK, Rhodes

[19] Louis Hellenic Cruises launches fourth vessel in Aegean Sea cruises

[20] Event held in Piraeus on promotion of Greek-Chinese cooperation

[21] Greece, Bahrain discuss shipping

[22] Stock Exchange officials skeptical over buyout prospects of Turkish Finansbank

[23] Athens Bourse Close: Stocks slump, tracking markets abroad

[24] Conference on European social policy and the modernization of local government actions

[25] Ecumenical Patriarch to visit Samos in August

[26] US. Armed Forces National Day honored

[27] UNSG: parties should re-engage in search for Cyprus solution

[28] US support Cyprus settlement on basis of Annan plan

[29] Russian envoy says UN role on Cyprus should be strengthened

[01] PM: No additional tax measures necessary; deficit under 3%

PARIS, 25/5/2006 (ANA/MPA)

The Greek prime minister reiterated that his government's high-profile "mild adjustment" strategy for the economy continues to bears fruit, with the budget deficit now below the euro-zone mandated 3 percent of GDP.

"As a result, the prospect of new measures is not being considered, but this doesn't mean that our resolve, discipline and devotion to the citizen aren’t still essential," he told reporters.

Moreover, he said the current spike in international oil prices has not dented the country's growth, while citing cooperation with partner countries to ensure the reliability of energy supplies and the replacement of oil with other forms of energy.

Regarding the OECD's recommendations for Greek's shaky social security system, he said the government has a specific timetable in mind, opening a dialogue of all parties affected "so that society, special interest groups and political parties agree on the basic parameters of the problem ... and the next government to emerge from national elections will implement the necessary reforms."

Asked about the most recent slide of stock markets around the world, a development that thoroughly jolted Athens' bourse downward, Karamanlis said the government is closely monitoring the situation but is wary of any type of intervention, "which most of the time led to even worse results, and in particular, we've seen that in our country on many occasions in the past".

On a broader front, Karamanlis said the conclusion from the OECD session in Paris that Greece chaired here is that trade remains the primary mechanism from increasing development and prosperity worldwide.

Additionally, he estimated that unemployment will remain at stable levels in the United States and Japan and begin a gradual decline in Europe. He added that skyrocketing energy costs have, to a certain degree, disrupted international economies, whereas certain markets must do more to rejuvenate and remove investment obstacles.

Finally, he said the OECD has an important institutional role to play in order to pinpoint areas where reform is imperative.

He also thanked outgoing OECD secretary general Donald Johnston (since June 1996) and welcomed his successor, Angel Gurria of Mexico, before announcing that an OECD education ministers' council will take place in Athens at the end of June.

[02] PM: Aegean collision should make Turkey review its stance

PARIS, 25/5/2006 (ANA-MPA)

"Yesterday's incident should make the neighboring country think seriously, so as to finally revise its stance, abandoning once and for all practices and behaviors that are not compatible with good neighborly relations and which are factored into assessments of its European course," he stressed.

The two aircraft collided in the air above the Aegean on Tuesday, about 15 miles south-southeast of the island of Karpathos, when the Greek Airforce plane engaged in maneuvers to intercept a formation of Turkish planes that had entered the Athens Flight Information Region (FIR) without submitting flight plans to Greek authorities.

The pilot of the Turkish F-16 was rescued shortly afterward but a search-and-rescue operation has so far discovered only the helmet and survival kit of missing Greek pilot Constantine Iliakis, father of two.

Stressing that the Greek government had taken all necessary steps in response to the incident, Karamanlis once again underlined that everything was taken into account in assessing Turkey's progress toward EU accession.

He reiterated that statement when asked if Greece would consent to Turkey's continued EU progress in October if the neighboring country continued its present tactics of frequent violations of Greek airspace and infringements of the Athens' Flight Information Region (FIR).

"Greece defends its national interests and its sovereign rights," the Greek premier said, noting that Athens' handling of the incident on all levels demonstrated "the responsible and serious way that the government and Greek authorities handle sensitive foreign and defense policy issues".

He also expressed his support for the family of the Greek Airforce pilot that is still missing and said that he had not contacted his Turkish counterpart since the accident.

The Greek premier said that he had fully briefed French Prime Minister Dominique de Villepin regarding the incident during a meeting earlier on Wednesday. Asked about his talks with Villepin over the Cyprus issue, meanwhile, Karamanlis said that he had ascertained a desire to resolve the problem and noted that the Cyprus government was determined to help.

At the same time, he again emphasized the need to carefully prepare all initiatives for the Cyprus problem in order to avoid another failure and arrive at a viable solution.

Karamanlis was in Paris to chair the Organization for Economic Cooperation and Development (OECD) Ministerial Council that began here on Tuesday.

[03] PM and French counterpart discuss Aegean collision, Turkey's EU course

PARIS, 25/5/2006 (ANA-MPA)

Karamanlis briefed his French counterpart on the collision between the two fighter aircraft on Tuesday, based on an announcement issued by the Greek defense ministry.

During talks on Turkey's EU accession prospects, meanwhile, the Greek premier underlined that Turkey's European prospects depend on fulfilling the commitments it has undertaken toward Europe and on maintaining good neighborly relations.

The two men also discussed the progress of the EU generally and the European Constitution, which will be the main topic discussed by EU leaders at the upcoming European Council in June.

During the meeting, Karamanlis reiterated Greek positions in favor of the European prospects of the Balkan states, while the French premier pointed out that French President Jacques Chirac had also backed the European prospects of South Eastern Europe.

In talks concerning Kosovo, Karamanlis and Villepin stressed the need for stability, while they reiterated the need for a diplomatic resolution in the issue of Iran's nuclear program, discussing the proposals made by the EU and Russia on this issue.

Karamanlis also repeated the standing Greek positions on resolving the Cyprus issue within the framework of the United Nations and stressed that every move must be well prepared so that it will lead to results.

Villepin raised the issue of a possible purchase by Greece of fourth-generation fighter jets from France, to which Karamanlis replied that the Greek defense ministry had not completed its assessment of the proposal and that he could not make any further comment at this time.

The French premier also thanked Karamanlis for Greece's support in the activities of the Francophonie organization.

[04] Gov't on fate of missing pilot, demarche to Turkey

ATHENS, 25/5/2006 (ANA/MPA)

"Our hearts and our thoughts are with the Greek pilot who has been missing since yesterday afternoon. We hope and pray that the search that continues today will have the happy outcome we desire," he told reporters.

The two aircraft collided in the air above the Aegean, about 15 miles south-southeast of the island of Karpathos, when the Greek Airforce plane engaged in maneuvers to intercept a formation of Turkish planes that had entered the Athens Flight Information Region (FIR) without submitting flight plans to Greek authorities.

The pilot of the Turkish F-16 was rescued shortly afterward but a search-and-rescue operation has so far discovered only the helmet and survival kit of missing Greek pilot Constantine Iliakis, father of two.

Antonaros also confirmed that Greece has lodged a demarche with Turkey over the incident, as well as informing NATO and the European Union.

He said that the precise causes of the collision were being investigation but stressed that there had been a "clear infringement of the Athens FIR".

He stressed, meanwhile, that the government's actions in response to the incident on Tuesday - on an operational, diplomatic and political level - had dealt with a dangerous situation in a way that was responsible, determined, level-headed and efficient.

"Greek sovereign rights and duties were fully secured. A steadfast goal on our side is the progress of Greek-Turkish relations toward a better future, with peace and stability, and of course with the simultaneous protection of Greek interests," he added.

Antonaros expressed conviction, meanwhile, that Ankara, first of all, would take advantage of the "European chapter that opened for Turkey on October 3".

"This means that it must abandon behaviors that are incompatible with good-neighborly relations. On our side, as a standing practice, we take all the required actions," he said.

Antonaros referred reporters to an announcement issued by the Greek Armed Forces General Staff regarding the mission of the Turkish formation that the Greek pilot had been sent to intercept and a reported Turkish request to pick up the Turkish pilot. He was unable to confirm reports that the Turkish pilot who was rescued had pulled a gun on a Greek rescue team.

On a political level, the spokesman said there was no change to an agreement made by Greek Prime Minister Costas Karamanlis and his Turkish counterpart Recep Tayyip Erdogan during their latest meeting to ensure "calm waters" in the Aegean over the summer.

He also pointed to an agreement between Foreign Minister Dora Bakoyannis and her Turkish counterpart Abdullah Gul during talks over the phone on Tuesday that the incident should not affect the two countries' efforts to improve bilateral relations.

In response to other questions, the spokesman said he had not been informed of any decision by Bakoyannis to alter her plans to visit Istanbul on June 10.

Antonaros said that Bakoyannis, who at the time of the incident had been in Finland for talks with the Finnish government, which is due to take over the next EU presidency, had also fully briefed Helsinki on the incident, underlining the immediate response of Greek search and rescue teams, by air and sea.

He emphasized, meanwhile, that a Greek Super Puma rescue helicopter had arrived on the scene fully half an hour sooner than the equivalent Turkish rescuers. He denied reports, however, that dozens of fighter aircraft from both the Greek and Turkish sides had been sent up, saying that this was not the information he had received.

Karamanlis and Erdogan had not spoken on the phone after Tuesday's collision, he added.

Regarding the response of the Greek defense ministry, Antonaros said that the Greek Armed Forces and the ministry's leadership "are doing their job thoroughly and with full competency". He said that President of the Republic Karolos Papoulias and the leaders of the political parties were briefed on the events by Defense Minister Evangelos Meimarakis, as soon as he had a complete picture of what happened.

The helmet of missing Greek pilot Constantine Iliakis, whose fighter plane was involved in a collision with a Turkish warplane earlier in the day, as well as the survival kit bearing Greek markings were found late on Tuesday night. Rescue crews are continuing their efforts to locate the missing pilot, according to the National Defense General Staff.

It was also revealed that the National Defense General Staff chiefs of the two countries had telephone conversations concerning both the event and the issue of the handing over of the Turkish pilot to the Turkish authorities.

The will of both sides to prevent possible tension in the Aegean appeared in these conversations, a will which had been expressed by the political leaderships of the two countries.

Iliakis is married and has two young children.

[05] PASOK party leader criticizes government's foreign policy

ATHENS, 25/5/2006 (ANA/MPA)

Papandreou said that the government believed that with so-called personal relations it could carry out high policy in the Aegean, but it was shown to be wrong in a dramatic way.

The PASOK party leader further said that the government's nudity in foreign policy appeared, adding that the Karamanlis government is moving without a plan, without initiatives, without strategy and without action and vigilance.

He also reiterated that the policy of the Karamanlis government will lead to minor and major incidents and great tension and will even result in Greece backing down on basic issues.

Referring to the missing Greek Air Force pilot, Papandreou said that he acted with heroism and self-sacrifice and all the Greeks owe a great deal to him, as they do to everyone in the armed forces.

[06] U.S. encouraging Greece and Turkey to examine details of air accident

WASHINGTON, 25/5/2006 (ANA-MPA/T. Ellis)

At the same time it believes that in the course of time the two countries must be in a position to examine the entire spectrum of differences separating those regarding territorial waters with the aim of further improving their relations.

Asked on Wednesday whether the U.S. has contacted Athens and Ankara on the Aegean incident, State Department spokesman Sean McCormack said "well, with issues specifically related to the plane crash, we would hope that they are in contact, so, you know, A, they can learn exactly what happened and, B, that from that, take any steps that might be required so that there is not a repeat of it."

Called on to comment in general on the situation prevailing in the Aegean, McCormack said "as for larger issues in the Aegean, that's for Greece and Turkey to resolve. I'm not aware of any particular contact that we have had with them on those issues. It's a small place. There are a lot of disputes about sea lanes and territory and all those sorts of things, and those are things that we would hope that over time Greece and Turkey would be able to work through."

Lastly, asked to state his position on Greece proposing to take the dispute on the Aegean issue to the International Court at The Hague, the State Department spokesman said "the Aegean issue? I'll have to ask our experts on this issue exactly what fora of forum we think is most appropriate, but certainly whatever forum a resolution might take place in, you know, a prerequisite for that is bilateral contact on the issue."

[07] NATO spokesman refers to collision between warplanes over Aegean

BRUSSELS, 25/5/2006 (ANA-MPA)

The spokesman also said that issues such as Tuesday's, that is related to air traffic control, primarily concern the two countries involved.

[08] FM Dora Bakoyannis to attend informal council of EU foreign ministers

VIENNA, 25/5/2006 (ANA-MPA)

The meeting will focus on the future of Europe in light of the European summit due to take place in Brussels on June 15-16.

[09] Danish royal couple pays official visit

ATHENS, 25/5/2006 (ANA/MPA)

Margrethe II was greeted by Health Minister Dimitris Avramopoulos and the ambassadors of Copenhagen to Athens and of Athens' envoy to Denmark, respectively.

The Danish royal couple subsequently laid a wreath at the Tomb of the Unknown Soldier before being received by Parliament President Anna Psarouda-Benaki.

Courtesy meetings also took place with main opposition PASOK secretary Mariliza Xenoyiannakopoulou and Coalition of the Left (Synaspismos) leader Alekos Alavanos.

Margrethe was also scheduled to be honored with the City of Athens' Gold Medal of Merit in the afternoon at Athens City Hall.

[10] Commission president to address event marking 25th anniversary of Greece's EU accession

ATHENS, 25/5/2006 (ANA/MPA)

Barroso will deliver an address during a celebration at the Pnyka archaeological site at 7:30 p.m. on Sunday, marking the 25th anniversary of Greece's accession to the European Union (January 1, 1981).

The Commission president will depart Athens for his return to Brussels on Monday morning.

[11] KKE leader blasts ND, PASOK and SYN policies

ATHENS, 25/5/2006 (ANA/MPA)

She accused New Democracy of an "underhanded political games at the expense of the people and the KKE", referring to the ruling party's backing of local government candidates that are affiliated with the KKE, and called PASOK a "slanderer" of the KKE's policies.

The attack was prompted by an article appearing in a Patras local newspaper claiming that ND intended to also back the candidate that was backed by the KKE, DHKKI, the Communist Renewal group, and the Leftist Citizens' Intervention group, headed by DHKKI member K. Keramidas.

New Democracy was seeking, at all sacrifice, to use the local elections to entertain, and chiefly to legitimize, its anti-popular measures and win the government authority again, Papariga said, adding that it used direct and indirect means that bordered the margins of political provocation, with selective backing of candidates of the cooperation tickets backed by the KKE. The goal, she said, was to grab the people's votes from the first round in the upcoming local government elections, but chiefly in the second round.

Papariga clarified that the KKE did not want "seats in which our hands will be tied behind our backs". Th ultimate aim, she said, was for ND to lose seats, and also for PASOK or the PASOK-SYN collaboration, to lose seats.

The KKE, she said, will aspire to winning its seats through the vote of the popular strata that comprehended that both the mainstream parties (ND and PASOK) must suffer defeats in the local government elections.

As for PASOK, Papariga said it was "playing the role of slanderer", knowingly, if one were to judge from the interventions of its leading cadres, "while the SYN leadership is also taking part in the chorus".

Also, she said, that which irritated PASOK and SYN was that her party would not "sing second voice" to the centre-left plans for governance.

The KKE, Papariga said, had a clear-cut policy and choices that caused aggravation.

Asked to comment on PASOK leader George Papandreou's criticism of the government's handling regarding Tuesday's collision of two Greek and Turkish fighter planes over the Aegean, she recalled earlier PASOK government policy vis-à-vis Turkey, and accused Papandreou of wearing a different mask as foreign minister and a different mask as main opposition leader.

Papariga opposed referral of border differences to the International Court of Justice at The Hague, although she conceded that referral of the continental shelf issue could be referred to The Hague.

[12] Finmin: Healthy outlook for 2006 budget

PARIS, 25/5/2006 (ANA-MPA)

"All the indications we have for the 2006 budget are positive. Revenue from taxation has increased and spending has been reduced," Alogoskoufis told the Le Monde newspaper in an interview published on Wednesday.

"No-one expected the fiscal deficit to fall in this manner while growth rates were maintained. We accomplished this by implementing a policy of mild fiscal adaptation, laying emphasis on spending in 2005," the minister noted.

He added that he was certain that the fiscal deficit would fall to 2.6% of gross domestic product in 2006 with a greater decrease targeted for 2007.

[13] Greece's economic sentiment index up in April

ATHENS, 25/5/2006 (ANA/MPA)

The index, however, remained low compared with the EU-25 average (107.8 points) and the Eurozone average (105.3 points) and its advance focused mainly on the services sector.

The construction sector was a negative contributor to the index in April, while the retail and consumer confidence index also fell, and the industry index was unchanged.

IOBE said Greek industry witnessed increased demand in early 2006, compared with the same period last year, while forecasts for industrial production remained high, along with expectations on sales, exports and inventories. The industrial capacity utilization index eased slightly in April (74.5 pct) from March but remain higher compared with April 2005.

Business expectations in the construction sector fell in April, after a four-month increase, business expectations in the retail sector fell to 121.4 points in April from 125.2 in March, while business expectations in the services sector jumped to 101.8 points in April from 94 in March.

The consumers' confidence index fell to -40 points in April from -38 in March reflecting worsening predictions over savings and unemployment. Greek households remained very pessimistic over their financial situation over the next 12 months.

[14] Greece unveils web site to promote agro-tourism

ATHENS, 25/5/2006 (ANA/MPA)

Brigita Papastavros, president of Agrotouristic, said the new site (www.agrotravel.gr) was designed to attract high quality tourists from Greece and abroad and to support all those interested in investing in the services sector.

[15] Greek trade deficit up 34.8 pct in Jan-March, yr/yr

ATHENS, 25/5/2006 (ANA/MPA)

The central bank, in its report, said the country paid 86.4 percent more for fuel purchases compared with the same period last year, while it stressed the encouraging development of a 19-percent increase in exports.

The country's trade deficit rose 34.8 percent to 2.394 billion euros in the January-March period, reflecting net payments of 1.184 billion euros for fuel imports and a 230 million euros rise in the vessel balance deficit.

The services surplus fell by 312 million euros, reflecting lower net proceeds from transport services and higher net payments for other services.

The Bank of Greece said the country's tourism foreign exchange inflow fell by 10 percent in the first three months of the year to 555 million euros from 617 million euros last year. Payments for travels abroad fell 33.5 percent in March and by 13.8 pct in the first quarter.

The current transfers' surplus fell by 304 million euros, reflecting lower net current transfers to the general government (mainly from EU funds) by 418 million euros, while net current transfers to other rose by 114 million euros.

The capital transfer balance showed a surplus of 738 million euros, down 74 million from the same period last year, while the financial transactions balance showed a net inflow of 59 million euros in the foreign direct investments category in March 2006.

Non-residents' direct investments to Greece showed a net inflow of 138 million euros, while the portfolio investments category showed a net inflow of 1.672 billion euros. Foreign direct investments' inflows totaled 423 million euros in the first three months of 2006 (from a net inflow of 45 million euros last year).

The other investments category showed a net inflow of 1.684 million euros in March and a net inflow of 6.337 billion euros in the three-month period.

[16] Olympics facility leased for 40 years

ATHENS, 25/5/2006 (ANA/MPA)

The winning consortium in an international tender was Akropol Haragionis and Sonae Sierra, each with an equal stake.

The two firms intend to run a shopping and entertainment centre on the site, due for completion in the middle of 2008.

The consortium said in a statement that they would invest 78 million euros in the project.

[17] Greenpeace expresses satisfaction over renewable energy sources draft bill

ATHENS, 25/5/2006 (ANA/MPA)

However, the group pointed out that there is still room for considerable improvement in the draft bill to ensure the comprehensive development of clean energy sources in Greece.

"The minister finally proved that he takes under serious consideration the comments and reactions of Greenpeace and other social partners active for many years in the promotion of clean energy and efforts against climate change," local Greenpeace activist Dimitris Ibrahim said.

[18] First budget flight linking UK, Rhodes

25/5/2006 (ANA/MPA)

The project is backed by the Greek National Tourism Organization’s London office, the Organization for the Promotion of Rhodes Tourism, the Union of Rhodes Hoteliers, and the Dodecanese Chamber of Commerce.

[19] Louis Hellenic Cruises launches fourth vessel in Aegean Sea cruises

ATHENS, 25/5/2006 (ANA/MPA)

The "Ivory" -a 12,609 ton vessel- has a capacity of 690 passengers in 254 cabins and will begin three- and four-day cruises in the Aegean Sea.

Louis Hellenic Cruises has already started sea cruises in the Greek islands with its cruise vessels "Perla", "Emerald" and "Sea Diamond".

[20] Event held in Piraeus on promotion of Greek-Chinese cooperation

ATHENS, 25/5/2006 (ANA/MPA)

Wednesday's meeting shows the importance which the Chinese leadership attributes to its cooperation with Greece, stressed the Chinese officials during of the event, which was organized by Cosco Hellas, a branch of China's very powerful state foreign trade company, Cosco.

[21] Greece, Bahrain discuss shipping

ATHENS, 25/5/2006 (ANA/MPA)

On Wednesday, Merchant Marine Minister Manolis Kefaloyiannis and Bahrain's minister of transport, Khalif al Khalifa, also discussed wider economic cooperation between the two countries during a meeting in the port of Piraeus.

The meeting was a follow-up to Kefaloyiannis' recent visit to the Gulf states.

Khalifa is also his country's deputy premier.

[22] Stock Exchange officials skeptical over buyout prospects of Turkish Finansbank

ATHENS, 25/5/2006 (ANA/MPA)

At the same time they expressed their annoyance at the "lack of information" regarding the terms of the agreement and the National Bank's business plans.

Commenting on this issue, the bank's managing director, Yiannis Pechlivanidis, replied that the National Bank, being listed with the New York Stock Exchange, is "subject to commitments" and as a result the briefing of shareholders is being delayed.

Representatives of social insurance bodies participating in the National Bank's share capital appeared more confident of the outlook of this business move and expressed support for an increase in the bank's share capital, but made no commitments as to whether their funds will participate in this increase.

[23] Athens Bourse Close: Stocks slump, tracking markets abroad

ATHENS, 25/5/2006 (ANA/MPA)

The FTSE/ASE-20 index for high capitalization shares ended 3.04% down; the FTSE/ASE-40 for medium cap stocks closed 4.41% lower; and the FTSE/ASE-80 for small cap shares finished 4.85% down.

Of stocks traded, declines led advances at 267 to 24 with 20 remaining unchanged.

Stock Futures: