Athens News Agency: News Bulletin in English, 07-02-14

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

CONTENTS

[01] EU Commission presents upbeat report on Greek stability programme

[02] Greece a 'factor of friendship' for Balkan business, Papoulias says

[03] Investments, oil pipeline dominate Papoulias' talks in Sofia

[04] Cross-border cooperation between Greece and Bulgaria

[05] FM Dora Bakoyannis visiting United Arab Emirates

[06] Inner Cabinet focuses on digital, broadband strategy

[07] Gov't replies to Ankara over oil exploration, Thrace minority

[08] Greece to ratify EU's 'Prim Convention', public order minister says

[09] Synaspismos' Political Secretariat convenes

[10] New book by former PM Costas Simitis

[11] Bank of Greece says economic growth to remain strong in 2007

[12] HEPO chief in Australia to prepare for FinMin's visit

[13] N. Greece industrialists urge more support measures for region

[14] Greece a major tourism market for Cyprus

[15] Helexpo to open representation office in New Delhi

[16] ACCI organizing business mission to Romania

[17] Halkidiki farmers suspend indefinitely their blockade of roads

[18] Greek stocks rebound after 5-day decline

[19] ADEX closing report

[20] Greek bond market closing report

[21] Foreign Exchange Rates - Wednesday

[22] Symbolic proclamation of Acropolis as top European monument

[23] Metropolitan of Aetolia & Akarnania passes away at 85

[24] Public prosecutor begins address at November 17 group's retrial

[25] Police investigating abduction of boy later found locked up in a car

[26] Suspect in Vartholomeos homicide to testify on Thursday

[27] Demonstration by disabled seeking more special education staff

[28] Officer involved in fatal shooting of robbery suspect released

[29] Former judge Constantina Bourboulia arrested

[30] Four injured in armed scuffle

[31] Prefecture urges precautions against bird flu

[32] Weather forecast: Overcast, windy on Wednesday

[33] Spokesman: Mobility for Cyprus talks depends on goodwill of both sides

[34] New UN Undersecretary General to have Cypriot government's cooperation

[35] Spokesman: Turkey's intention to explore waters west of Cyprus is illegal

[36] Cyprus applies to join the Eurozone on Jan. 1, 2008

[37] Commission receives Cyprus' official application to join Eurozone

[38] Deputy culture minister for sport visiting Cyprus

[39] Greece's ambassador meets with Nicosia mayor

[01] EU Commission presents upbeat report on Greek stability programme

Greece's finances are on the right track although the country still needs to take additional measures to further cut its public debt and support its pension system, Joaquin Almunia, the EU Monetary Affairs Commissioner, said here on Tuesday.

The European Commission published its evaluation on Greece's economic stability programme for the period 2006-2009, noting that Greece cut its excessive fiscal deficit in 2006, while underlining that long-term fiscal stability was needed for the economy to benefit from strong growth and to reduce the risk of higher than ex-pected deficits after 2008.

Specifically, the Commission announced that Greece's stability programme for 2006-2009 primarily aimed at reducing its excessive deficit, according to recommenda-tions made by the Council of Ministers, as well as to set medium-term targets for balanced or surplus budgets using structural measures.

By 2009, the programme envisages a gradual reduction of the fiscal deficit to 1.25 pct of GDP, and of the public debt to 91.25 pct of GDP, the Commission said.

The EU's executive said the long-term impact from an ageing population on the country's fiscal condition was "uncertain", since there were no available long-term forecasts for pension cost in Greece. The Commission noted, however, that due to a high public debt and expected significant pension spending in the country, Greece faced high risk over the stability of its fiscal condition.

In general, the Commission said Greece's stability programme was compatible with a target of reducing its excessive deficit in 2006, although the rate of adjustment in the next few years, after 2007, should be accelerated to fully exploit strong growth rates and to reduce the risk of presenting larger than expected deficits after 2008.

Based on the above, the Council of Ministers made three recommendations for the country, namely, to ensure a reduction in the public debt to take advantage of a favourable economic conjunction.

Secondly, the EU urged Greece to continue improving its fiscal data, which will increase transparency, clarify long-term fiscal strategy and effectively implement mechanisms to properly record and regulate primary spending.

Finally, the Commission said Athens, in view of its high public debt and expected increase in pension spending, should improve the long-term stability of its finances by controlling public spending in its pension and social insurance systems, and implement reforms.

Greece should also present, as soon as possible, long-term forecasts for its spending on social security.

FinMin says Commission report acknowledges fiscal progress in the country

With its assessment of the Greek updated Stability and Growth Programme the European Commission acknowledges the significant progress made in restructuring the country's public finances, a reduction of the deficit and of the public debt and restoring transparency in statistical data, Greek Economy and Finance Minister George Alogoskoufis said on Tuesday.

He was commenting on the publication of the European Commission's assessment report on the country's stability and growth programme.

'We are mending a bad situation we inherited and moved steadily towards achieving balanced or surplus budgets by 2012,' the Greek minister said, adding 'We are achieving fiscal stabilization by strengthening growth rates and combating unemployment. The growth rate, based on latest figures by the statistics services, was at least 4.2 pct in 2006, clearly above targets set both in the budget and the stability programme'.

The government, Alogoskoufis said, remained steadily focused on its reform policy aiming to continue a restructuring of public finances and further strengthening growth, employment and social cohesion.

PASOK deputy V. Papandreou

Main opposition Panhellenic Socialist Movement (PASOK) deputy and head of the Economy Department of the party's Parliamentary Council, Vasso Papandreou, on Tuesday referred to statements made by Economy and Finance Minister George Alogoskoufis on the Stability and Development Programme.

"The European Commission in an announcement today calls for the strengthening of the restrictive measures from 2007, something which inevitably will lead to the shrinking of the EU funds, which in any case, constituted the easy tool of compres-sion which the New Democracy used."

She added that "yet again, Mr. Alogoskoufis attempts to cover up the catastrophic repercussions of his political options with the selective and misleading reading of the European Commission's announcements." She further claimed that "the Greek economy and the citizen's average income are at the point which they are today, because of the adventure with the country's fiscal deficits in which the the (ruling) New Democracy government started three years ago."

[02] Greece a 'factor of friendship' for Balkan business, Papoulias says

Greece was a "factor of friendship, peace and cooperation" in the Balkans and a leading player in the process of integrating neighbouring markets in the wider European and world scene, President of the Hellenic Republic Karolos Papoulias said on Tuesday.

He was addressing a Greek-Bulgarian business forum in Sofia with his Bulgarian counterpart Georgi Purvanov on the second day of an official visit to Bulgaria.

Papoulias also underlined that equal participation of all the region's countries in "building a new Europe" was a strategic choice for Greece, while noting that EU accession was a catalyst that speeded up the passing of difficult but necessary reforms in political life, institutions and the economy.

"Our ambition is to create the necessary conditions for southeastern Europe to be a region of stability, peace, economic cooperation and development, he added.

Both Papoulias and Purvanov underlined the importance of the Burgas-Alexandroupolis oil pipeline, the final agreement for which is due to be signed in March, with Papoulias stressing that it would upgrade the geostrategic position of the two countries on energy routes and offer clearcut diplomatic and economic advantages.

The two presidents also pointed out that significant areas of potential economic cooperation and investments remained unexploited between the two countries and that Bulgaria's entry into the EU created a more favourable environment for strengthening these relations.

Greece encourages economic penetration of Balkan markets by Greek business, while the business delegation that accompanied the Greek president to Bulgaria and will follow him to Romania on Wednesday includes some the Greece's largest companies in the banking, energy and construction sectors.

According to Papoulias, Greece was among the largest foreign investors in Bulgaria, both in terms of the number of investments and in terms of the capital invested in the Bulgarian market, which was the fourth most important for Greek exports. He said that Athens' target was to extend the range of products exchanged.

Purvanov, in his own address to the forum, stressed that Greece was a foreign policy priority for all the political forces in Bulgaria and that Greeks wanting to invest in Bulgaria will meet with understanding and support from the country's institutions.

He underlined that the country offered a secure environment for investments and was updating its legal framework for foreign investments following its entry into the EU.

The Greek president followed up his address at the business forum by meeting the Bulgarian National Assembly Chairman Georgi Pirinski and visits to the Alexander Nevsky Cathedral and Sofia's Archaeological Museum.

Later on Tuesday he is scheduled to have a working dinner with Bulgarian Prime Minister Sergei Stanishev and receive the head of the National Movement Simeon II party, former Bulgarian monarch and premier Simeon Saxe-Coburg-Gotha.

In the evening, accompanied by the Bulgarian president, Papoulias is to attend a concert by internationally renowned Greek pianist Dora Bakopoulou, accompanied by vocalists Tassos Christogiannopoulos and Elli Paspala.

[03] Investments, oil pipeline dominate Papoulias' talks in Sofia

Prospective investments by Greek businesses have so far dominated talks held in Sofia by Greek President Karolos Papoulias, who on Tuesday began the second day of an official visit to Bulgaria.

Ministers accompanying Papoulias said that the two sides were also moving toward the signature of a final agreement for the Burgas-Alexandroupolis oil pipeline between Greece, Bulgaria and Russia. The Greek side has proposed March 6-8 as a possible date for the ceremony, a proposal that had not been rejected by any of the sides involved so far, they added.

The Bulgarian side, meanwhile, was anxious to learn about Greece's experiences in its transition to the Eurozone, which Bulgaria hopes to join in due course.

According to Greek Deputy Finance Minister Petros Doukas and Deputy Development Minister Tassos Nerantzis, Papoulias' working dinner with Bulgarian Prime Minister Sergei Stanishev was an opportunity to signal Greece's strong interest in several possible investments.

Among these was the acquisition by the Greek stock market of a 43% share in Bulgaria's bourse held by the Bulgarian state, construction of roads planned in the near future, the funding of these projects by Greek banks - which also hope to open new branches in Bulgaria - improvements to Bulgaria's stock market and underperforming capital market by experienced Greek banks, investments in the country's aluminium and steel industries and the purchase of a Bulgarian state shipping firm by Greek ship-owners.

The Greek side also noted its interest in the establishment of Greek food and textile companies in Bulgaria and the purchase by Greek firms of hotel units with a view to an increase in tourism in both directions.

Another problem discussed in meetings was Bulgaria's inability to continue supplying surplus electricity to Greece after the closure of its nuclear power plant in Kozloduy and recent water shortages, which came to 880MW a year.

Talks between the two men covered political aspects of Greek-Bulgarian relations, which were described as excellent, and the problems of the Balkan region in general.

[04] Cross-border cooperation between Greece and Bulgaria

In a joint statement issued after the meeting held with the participation of the Eastern Macedonia-Thrace Region general secretary and the Bulgarian deputy minister of regional development and public works, the two sides stressed that the advantage offered to the region by its geographic position should be exploited through cross-border cooperation at national and regional level.

[05] FM Dora Bakoyannis visiting United Arab Emirates

A Greek delegation headed by Foreign Minister Dora Bakoyannis arrived in the United Arab Emirates on Tuesday night, in the framework of a two-day visit, and will be holding a series of political and business meetings on Wednesday.

Bakoyannis, who is being accompanied by Deputy Foreign Minister Evripidis Stylianidis, will meet on Wednesday with General Sheikh Mohammed Zayed Al Nahyan, the heir of Abu Dhabi, and with Sheikh Abdullah bin Zayed Al Nahyan, the Emirates' foreign minister.

Talks will focus on bilateral economic and political issues, as well as regional problems of the Middle East, Iran and Iraq.

In parallel, about 90 Greek businessmen and technical officials of the government and the Greek market who are accompa-nying the foreign minister will be having about 400 meetings with businessmen from the Emirates with the purpose of increasing Greek exports and carrying out joint ventures.

The Greek side has a trade surplus and over the past five years it has quadrupled exports. However, it is believed that extensive ground exists for a further increase.

Greek exports amounted to 260 million dollars in 2005 compared to 42 million in imports from the Emirates. The businesses participating in the delegation represent the sectors of construction, banks, pharmaceuticals, telecommunications, food, clothing, cosmetics, etc.

The Greek delegation will leave for Dubai on Wednesday afternoon, where a new business forum will be held, as well as a series of political contacts. The Greek ambassador to the Emirates will be giving a dinner on Tuesday night in honour of the foreign minister, in the presence of representatives of Abu Dhabi's political and economic life.

[06] Inner Cabinet focuses on digital, broadband strategy

Economy and Finance Minister George Alogoskoufis, who earlier had a one-on-one meeting with Karamanlis, told reporters afterwards that major strides had been made in the country's digital strategy and in expanding the broadband network, the penetration of which was expected to jump to 7 percent by the end of 2007 from 0.1 percent in 2004.

"Fast internet is important for both society and the economy," Alogoskoufis said, stressing that significant investments have been made in that sector.

Development Minister Dimitris Sioufas, in turn, noted that the strategy for digital convergence with the rest of western Europe was proceeding according to plan, adding that two important programmes were being implemented by his ministry, in which 52,000 companies were already taking part.

Sioufas further said a joint programme by the education, transport & communications and development ministries for fast and inexpensive Internet for university students was progressing at a rapid pace, with 29,800 applications having been submitted by the end of 2006, of which 17,700 accounts have been activated.

The rate of submission of relevant applications by students has reached approximately 150 per day, Sioufas added, stressing the importance of speedy Internet for the knowledge society.

Transport and Communications minister Mihalis Liapis stressed significant progress has been made in the sector, stressing that the gap that existed with other European countries needed to be bridged.

Interior Minister Prokopis Pavlopoulos said that under the Information Society programme, commitments today reached 690 million euros, up from 1.2 million euros when the present government took over from its predecessor, adding that not a single euro will be lost out of the 904 million earmarked for Greece under the EU's 3rd Community Support Framework (CSF).

Electronic governance was also important for combating red tape and for boosting transparency in public administration, Pavlopoulos continued, while at the same time the citizens will be able to carry out transactions with public services online.

Government's work for broadband 'nonexistent', main opposition charges

The main opposition PASOK party on Tuesday slammed a inner cabinet meeting to discuss the penetration of broadband as a chance for Prime Minister Costas Karamanlis to congratulate his government on "nonexistent work".

According to PASOK spokesman Petros Efthymiou, the government was guilty of major omission in this area, especially the participation of Hellenic Telecommunications Organisation (OTE):

"A completed plan that was available for OTE IN 2004 was not made use of, obviously as part of the conscious political devaluation of the organisation so that it could be sold off more cheaply," he said.

"The government bears great responsibility because it is failing to produce results in a crucial sector, so that the country is officially a laggard in broadband penetration in the EU," Efthymiou added.

Political parties comment on digital, broadband strategy

Main opposition PASOK party transport and telecommunica-tions chief, Dinos Rovlias, commenting on Tuesday on the inner cabinet's meeting on digital and broadband strategy, said that "once again, the government is trying to deceive the Greek people in relation to its supposed performances in the broadband, electronic communications and digital strategy sectors", adding that "the government and the prime minister remembered broadband and electronic communications after three years of absolute inertia."

Referring to the same issue, the Communist Party of Greece (KKE) said that "the policy of the government and of the EU on the Internet and broadband services serves the interests of the private businesses that are active in this sector and the further use and utilisation of the Internet for the needs of the bourgeoisie."

Coalition of the Left, Movements and Ecology (Synaspismos) party Political Bureau member Dimitris Stratoulis said that "the gap in the Internet's infiltration between the wealthier and poorer social classes and between urban centres and the countryside remains and widens social and regional inequalities."

PASOK leader: Gov't lacks strategy in energy sector

Main opposition PASOK leader George Papandreou on Tues-day accused the government of lack of strategy in the energy sector and downgrading the Public Power Corporation (PPC), as well as of failing to serve the public interest but, rather, "various other interests", during a meeting of his party's parliamentary council.

"The government has heavy responsibilities for its energy policy, but also on the PPC, which it is downgrading through the lack of planning but also criminal delays and omissions," Papandreou said, noting that a small part of that problem was the repeated changes in the PPC's administration.

Accusing the government of serving "various interests" rather than the public interest, Papandreou said that for PASOK the PPC was a public corporation "with a strategic role in Greece and the Balkans".

Papandreou further referred to the relationship between energy policy and the country's national security policy, and what he called a lack of strategy on renewable energy sources and a lack of environmental sensitivity, noting that he himself had, in 1986, broached the issue of the use of renewable energy sources, adding that Greece, with its sunlight, should have been a pioneer in this area.

Papandreou said that, as president of Socialist International (SI), he had undertaken initiatives internationally for tackling the greenhouse effect and recently, in fact, he had sent letters to US president George Bush, European Commission president Jose Manuel Barroso, and US House of Representatives speaker Nancy Pelosi on that issue.

Before the meeting, Papandreou had a brief discussion with party MP and former minister Theodoros Pangalos.

Development minister replies to PASOK leader

Development Minister Dimitris Sioufas, replying on Tuesday to statements made by main opposition PASOK party leader George Papandreou during a Parliamentary Council meeting of his party, said that "the President of PASOK was unfortunate, once again, in his criticism of this government."

Sioufas said that "a few days ago, he was discredited with what he had said in Parliament concerning statements by (Russian) President (Vladimir) Putin on the Burgas-Alexandroupoli oil pipeline. Today, he is being discredited even more with what he is stating about the government's energy policy. He is showing that either he is not following government initiatives and Parliament's legislative work, or that he is not being informed by his associates about them."

The minister pointed out that in March 2004, the total capacity of Renewable Energy Sources in operation was only 400 MW, while today it exceeds 755 MW and in 2007 it shall exceed 1,100 MW.

Sioufas further said that this government has promoted investments running into billions of euros, upgrading the electric energy transportation system and the local natural gas networks and extending its use to the largest part of continental Greece.

[07] Gov't replies to Ankara over oil exploration, Thrace minority

Referring to Cyprus, he stressed that the international community recognises only one state on the island, namely, the Republic of Cyprus.

The spokesman also dismissed complaints by the Turkish foreign ministry claiming "inadequate recognition" of the rights of the Muslim minority in the northeastern Greek province of Thrace, which Ankara continues to refer to as 'Turkish'.

The Turkish foreign ministry was commenting on the announcement last week of a package of measures to resolve outstanding issues faced by the minority -- especially the accumulated debts of its religious foundations -- by Greek Foreign Minister Dora Bakoyannis, during her tour of the province.

According to the Turkish foreign ministry spokesman, the steps Greece has undertaken to implement "would mean an end to measures discriminating against the minority".

Antonaros stressed that the Muslim minority, the only recognized minority in Greece, enjoys full equality before the law and the State like all Greek citizens.

Athens views the minority -- which also includes a small community with its own Slavic-based language known as Pomaks -- as a strictly religious group rather than an ethnic group, on the basis of the 1923 Lausanne Treaty.

Finally, in a related development, Antonaros said that no date has been set for the Turkish foreign minister's visit to Greece.

[08] Greece to ratify EU's 'Prim Convention', public order minister says

The convention is expected to be discussed on Thursday at the EU's Council of Justice and Internal Affairs Ministers, so that it will be also ratified by the remaining four countries (Greece, Denmark, Britain and Ireland). It also foresees the exchange of DNA even for suspects of illegal acts.

Against the convention were representatives of the Communist Party of Greece (KKE) and of the Coalition of the Left, Movements and Ecology (Synaspismos), while main opposition Panhellenic Socialist Movement (PASOK) deputy of State Socrates Kosmidis had reservations.

[09] Synaspismos' Political Secretariat convenes

In an announcement issued after the meeting, Synaspismos expressed its "complete opposition to Turkey's attempt to turn to a new source of threats and tension, the decision of the Republic of Cyprus to reach agreements with neighbouring countries with the objective the exploitation of its undersea wealth, something which constitutes its sovereign right."

The Political Secretariat appealed for this issue "not to constitute a point of division between the two communities of Cyprus," adding that "on the contrary, it is necessary for every effort to be made for substantial talks aimed at the solution of the Cyprus issue."

On the Middle East, the party's Political Secretariat announced that "it is processing a proposal for a European initiative which it will soon present," while on developments on the future status of Kosovo, it notes that the possible unilateral independence of Kosovo "may cause chain reactions of destabilisation in the western Balkans and a negative precedent for many other problems." On this issue, Synaspismos asks of Parliament to brief it immediately and for the National Foreign Policy Council to convene.

[10] New book by former PM Costas Simitis

Speaking at the book launch, the former prime minister's observations concerned the present juncture and Greece's place in the new setting as well as positive references to main opposition PASOK party and criticism for the New Democracy governance.

The event was attended by former Greek president Costis Stephanopoulos, PASOK deputies and members of the academic community.

Financial News

[11] Bank of Greece says economic growth to remain strong in 2007

The report, submitted to Parliament President Anna Psarouda-Benaki by Bank of Greece's governor Nikos Garganas, said an expected increase in private consumption -around 2006 levels- would remain the main boosting factor for domestic demand and would be supported by an expected rise of real wages and employment, higher household borrowing and an accumulated increase of real estate assets (mainly houses) in recent years. The central bank, in its report, said investment growth would remain high reflecting improved financial conditions for most businesses and favourable credit conditions in the country.

The report said it expected average inflation to fall to 2.8 pct in 2007, from 3.3 pct in 2006, mainly reflecting lower oil prices, while core inflation (excluding energy and fresh food produce) was forecast at 3.3 pct this year from 2.9 pct in 2006, around the six-year average rate of 3.4 pct. The report said that a significant increase in interest rates by the European Central Bank and a strict fiscal policy by the Greek government would contribute in containing inflation in the country.

Greece's current acccounts deficit reached 12.1 pct of GDP last year, from 7.9 pct in 2005. The widening of the deficit by 9.0 billion euros in 2006 reflected a 27 pct increase in net payments for the purchase of vessels, a 24 pct rise in the fuel deficit and a 16 pct increase in net interest payment. The central bank expects the current accounts deficit to ease slightly to 11.5 pct of GDP this year.

The annual growth rate of households' borrowing (including securitized loans) slowed to 26.7 pct in the fourth quarter of 2006, from 30.6 pct in the same period in 2005, but households' total debt to banks rose to 44 pct of GDP in 2006 from 38 pct in 2005. Excluding securitized loans, the debt was 41.1 pct of GDP in Greece, down from a 54.3 pct rate in the Eurozone.

The central bank noted that domestic banks' interest rates rose less compared with other Eurozone countries, reflecting an increasing competition between banks. The report, however, noted that there were still certain categories of loans which showed great differences in interest rates with the Eurozone.

Challenges for the future

The central bank said the Greek economy, despite its impressive high growth rates in the last decade, still showed serious macro-economic imbalances and structural weaknesses, resulting to higher inflation, higher unemployment and high current accounts deficit in the country. Higher inflation led to a loss in international competitiveness of the economy in the last six years, a trend likely to continue, the report said. The Bank of Greece also stressed that despite a significant reduction of fiscal deficit in 2005 and 2006, fiscal imbalances still existed, with the public debt at very high levels, while the country's fiscal condition was expected to be burdened in the long-term from unfavourable demographic developments.

The report said higher inflation in the country reflected lack of timely adjustment to a new economic environment of price stability created by the introduction of the euro currency and lack of competition in several domestic product markets. A rising external trade deficit in the last few years is a development mainly reflecting a significant shortfall of national savings against domestic investments, the report said. The Bank of Greece noted that the unemployment rate, although it fell in 2006, remained at high levels, a development reflected with structural weaknesses of labour and product markets and weaknesses of the education and tax system in the country.

The Greek economy's current production base was not sufficiently wide to create a significant new number of jobs, since the farm sector has shrunk considerably, the manufa-cturing sector was currently in a stalemate and the services' sector showed a dynamism only in few categories. The report underlined that high public debt fell very slowly as a percentage of GDP, puting certain limitations to growth, while income differences between social classes and geographical regions have not changed essentially in the last decade.

"This conditions demand primarily the continuation of fiscal adjustment, the contribution of social partners in achieving price stability and structural reforms to safeguard macro-economic stability and growth prospects," the report noted. The Bank of Greece underlined that a fiscal adjustment policy must be continued for several years to achieve a budget surplus and a significant reduction of public debt.

The report also noted that a timely reform of the social insurance system and the healthcare system was vital to effectively deal with fiscal pressures resulting from an ageing population. The central bank also urged for measures to restraint a rising labour cost per product unit, and to boost competitiveness.

Bank of Greece chief submits annual Monetary Policy report to parliament

Central bank governor Nick Garganas said on Tuesday it was necessary to continue with the policy of fiscal adjustment and structural reforms, as he tabled the Bank of Greece's annual report on the 2006-2007 Monetary Policy in parliament.

Turning over the report to parliament president Anna Psarouda-Benaki, Garganas said that, based on the report's conclusions, "the developments in the Greek economy, with regard to the growth rate and inflation, are positive, and the prospects for the current year are auspicious".

He added, however, that in order to maintain the high growth rate of the past decade on a more permanent basis, certain chronic problems needed to be tackled over the coming years, citing for example the ongoing loss of international competitiveness, which he said was one of the main factors contributing to the high deficit of the current accounts balance and was due, inter alia, to the fact that inflation in Greece continued to exceed the eurozone average.

Garganas further underlined that "the policy of fiscal adjustment being successfully exercised in recent years must continue. The same holds true also for the structural reforms, which are necessary for the Greek economy to acquire greater dynamism, for a drastic reduction in unemployment, and for the benefits of growth to be distributed among all the social groups and all the regions of the country".

Psarouda-Benaki express satisfaction with the positive conclusions of the report, stressing that everyone's attention must focus on the problems pointed out in the report.

She explained that the report would be put before the parliament's standing committee on economic affairs and also to all the deputies for study and discussion.

Reactions to Bank of Greece's report on 2006-2007 monetary policy

The General Confederation of Workers of Greece (GSEE) in an announcement on Tuesday, in response to the annual report by the Bank of Greece on the 2006-2007 monetary policy, expressed "its disagreement and indignation to the continuous provocative austerity recepies by the governor of the Bank of Greece."

The GSEE added that "in a period when the most violent and dramatic redistribution of income against the working people is being carried out, while the profiteering of businesses and banks registers a historic record, it is provocative for even more savage austerity to be proposed."

The Communist Party of Greece (KKE) stressed:"The report reveals yet again how reactionary and parasytic contemporary capitalism is, it shows what 'competitiveness' means and at which the EU's Lisbon strategy aims. At the same time, it reveals the hypocricy of the New Democracy (ND) government but also of the leadership of the (main opposition) PASOK, who both adopt and support this strategy, claiming, nevertheless, that they are not in favour of the anti-popular measures and that they have different policies."

Coalition of the Left, Movements and Ecology (Synaspismos) Political Bureau member Panagiotis Lafazanis said "it is a tragic irony for the governor to attribute inflation to the so-called disproportional increase in the cost of labour and to sidestep the increase, which he admits, of the net profits of banks in 2006 by 50 per cent, a fact which confirms that inflation in our country is first of all, and mainly, inflation of profits."

[12] HEPO chief in Australia to prepare for FinMin's visit

Greece's national economy and finance minister's visit to Sydney in late March to early April, at the head of a business delegation, will aim at promoting Greek exports to Australia, Hellenic Exports Promotion Organisation (HEPO) managing director Panayotis Drosos told ANA-MPA in Melbourne on Tuesday, where he is currently on a visit to prepare for the minister's tour.

He said the minister's visit comes after three Greek business delegations' visits to Australia in the past two years, with particular focus on the food and beverage sector.

Alogoskoufis' visit aims to further promote Greek interests in and exports to Australia, while cooperation between Greek and Australian companies will also be discussed, Drosos said.

According to the HEPO chief, there has been an impressive increase in Greek exports to Australia over the past two years, and the predictions indicated an even greater increase.

"Over the past two years, we have no longer spoken with intent but with action. We succeeded in the Greek enterprises' penetration abroad, under the supervision of Mr. Alogoskoufis, and now we have the biggest increase in Greek exports. Our efficiency is very large, and this is due firstly to Mr. Alogoskoufis, to HEPO, and also to all the Greek companies that have become competitive," Drosos explained.

During his visit, Alogoskoufis will meet with important Australian economic bodies and businessmen.

The visit and Alogoskoufis' contacts are being prepared in cooperation with the state government of Victoria, state minister for industry Fanos Theophanous, who recently visited Greece and had talks with Alogoskoufis, and the local Greek-Australian MPs.

Alogoskoufis' meetings, and a business forum that will take place in Melbourne, will aim at boosting Greek interests in the region.

According to Drosos, some 40-50 major Greek enterprises will take part in the business delegation, representing such branches ad food & beverage, pharmaceutics, medical services, construction material and minalers, the tobacco industry, industrial equipment, Greek banks, and the services sector (software, IT, etc.).

"The top Greek businessmen are coming here to meet with the top Australian and Greek-Australian businessmen in the country," Drosos said.

He also announced that a big Greek Cuisine Festival will take place during Alogoskoufis' visit, in the framework of HEPO's "Kerasma" (treat) initiative, to be held at a posh local restaurant with the participation of eminent chefs.

The aim of the Kerasma event is an organised promotion of Greek cuisine, Greek foodstuff and drinks/beverages, Drosos said, adding that the projection will continue later at the Fine Food exhibitions in Sydney and Melbourne.

[13] N. Greece industrialists urge more support measures for region

SBBE also urged for the rapid completion of transport infrastructure projects in the region.

The requests were made during a board council meeting in Kavala.

During the meeting, SBBE president George Mylonas noted that although the region of eastern Macedonia-Thrace was included in the highest subsidy rate, the situation was unfavourable towards attracting any significant investments from Greek enterprises in the region.

[14] Greece a major tourism market for Cyprus

Cypriot Industry and Tourism Minister Antonis Michailidis on Tuesday characterized Greece's tourism market as most important for Cypriot tourism, stressing that it is among the top priority markets included in the Tourism Development Strategy of the SE Mediterranean island.

Addressing the Hellenic Chamber of Hotels and the Cypriot Association of Hotel Owners boards of directors, he noted that a total of 127,000 Greek tourists visited Cyprus in 2006 underlining that the objective is to attract more tourists from Greece. Last year, a total of 400,000 Cypriots visited Greece, 320,000 of them for vacation purposes.

Michailidis hailed the Hellenic Chamber's decision to include Cyprus in the meetings it holds away from urban centers stating that it is a step toward further strengthening the existing cooperation between Greek and Cypriot hotel owners.

[15] Helexpo to open representation office in New Delhi

The representation office in New Delhi will have a task of attracting Indian exhibitors and commercial visitors to Helexpo's trade fairs in Thessaloniki.

Helexpo's chairman, Aristotelis Thomopoulos, participated in a Greek business delegation that recently visited India.

[16] ACCI organizing business mission to Romania

The Greek business delegation will have scheduled meetings with Romanian businessmen to examine ways for further cooperation, and visit TIBCO international exhibition on consumer goods in Bucharest.

[17] Halkidiki farmers suspend indefinitely their blockade of roads

The farmers were due on Tuesday evening to depart for Halkidiki with their tractors, which have been lined up these past few days outside the Macedonia-Thrace Ministry, while by the early hours of Wednesday they are due to withdraw completely, after a blockade of 25 days, from the National Highway-Thessaloniki-Nea Moudania, at the height of Nea Triglia, as well.

According to the president of the Struggle Committe, Filalithi Kapandrea, "the lifting of the blockade does not also mean the halt of efforts for the settlement of the problem."

The farmers believe that the objective of their demand "has been achieved to a great degree" and that after their meeting on Monday at the Agricultural Development and Foods Ministry with Deputy Minister Alexandros Kontos and Secretary-General Costas Skiathas, "the bases have been laid for a more correct re-examination of it."

[18] Greek stocks rebound after 5-day decline

Sector indices moved higher with the Banks (1.49 pct), Utilities (1.43 pct) and Constructions (1.26 pct) scored the biggest percentage gains of the day, while the Industrial Products (0.34 pct), Raw Materials (0.21 pct) and Food-Beverage (0.09 pct) suffered losses.

The Big Cap index rose 1.12 pct, the Mid Cap ended 0.15 pct higher and the Small Cap index rose 0.05 pct.

Interfish (13.08 pct), Desmos (12.5 pct) and Gener (11.76 pct were top gainers, while Newsphone Hellas (11.36 pct), Lana-cam (8.0 pct) and Vis (7.95 pct) were top losers.

Broadly, advancers led decliners by 141 to 96 with another 76 issues unchanged.

Sector indices ended as follows:

Insurance: +1.21%

Industrials: -0.34%

Commercial: +0.27%

Construction: +1.26%

Media: +0.63%

Oil & Gas: +0.54%

Personal & Household: +0.19%

Raw Materials: -0.21%

Travel & Leisure: +0.30%

Technology: +0.39%

Telecoms: +0.15%

Banks: +1.49%

Food & Beverages: -0.09%

Health: -0.02%

Utilities: +1.43%

Chemicals: -0.01%

Financial Services: +0.61%

The stocks with the highest turnover were Marfin Popular Bank, National Bank, OTE and Piraeus Bank.

Selected shares from the FTSE/ASE-20 index closed in euros as follows:

Alpha Bank: 24.24

ATEbank: 4.04

Public Power Corp (PPC): 21.92

HBC Coca Cola: 30.50

Hellenic Petroleum: 11.00

Emporiki Bank: 21.90

National Bank of Greece: 39.24

EFG Eurobank Ergasias: 29.66

Intralot: 25.30

Cosmote: 22.50

OPAP: 29.32

OTE: 21.98

Titan Cement Company: 44.02

[19] ADEX closing report

The February contract on the FTSE 20 index was traded at a discount of 0.35 pct and on the FTSE 40 index at a discount of 0.19 pct. Volume in futures contracts on the FTSE 20 index totaled 26.608 contracts worth 333.129 million euros, with 23,983 open positions in the market, while on the FTSE 40 index volume was 752 contracts worth 20.81 million euros with 1,474 open positions.

Volume in futures contracts on equities totaled 8,578 contracts worth 7.335 million euros with investment interest focusing on Alpha Bank's contracts (1,028) followed by OTE (687), PPC (213), Piraeus Bank (325), National Bank (1,017), Intracom (861), ATEbank (813) and Mytilineos (754).

Volume in stock repos was six contracts and in reverse stock repos 2,596 contracts.

[20] Greek bond market closing report

The 10-year benchmark bond (July 20, 2016) was the most heavily traded security with a turnover of 1.265 billion euros, while the yield spread between the 10-year Greek and German bonds was 0.23 percent. The Greek bond yielded 4.36 pct and the German Bund 4.13 pct.

In the domestic interbank market, interest rates moved higher. National Bank's overnight rate rose to 3.70 pct from 3.56 pct on Monday, the two-day rate rose to 3.58 pct from 3.56 pct, the one-month rate was 3.61 pct from 3.60 pct and the 12-month rate was unchanged at 4.09 pct.

[21] Foreign Exchange Rates - Wednesday

U.S. dollar 1.312

Pound sterling 0.675

Danish kroner 7.513

Swedish kroner 9.239

Japanese yen 159.25

Swiss franc 1.636

Norwegian kroner 8.175

Cyprus pound 0.583

Canadian dollar 1.537

Australian dollar 1.694

General News

[22] Symbolic proclamation of Acropolis as top European monument

Culture Minister George Voulgarakis announced on Tuesday that an indication will be placed at the Acropolis on March 26 that this emblem of Greek cultural heritage will be proclaimed the top monument on the European Heritage Monuments List being prepared. He was speaking here at the end of the informal meeting of European Union culture ministers.

The theme of the informal council was "The economy of culture", meaning economic activity about culture that produces income and jobs and constitutes a new dimension.

"We are still at the beginning. It is a policy in the making," Voulgarakis told Greek reporters, underlining the different starting points of rapprochement between countries whose "cultural" interests concern, for example, a developed cinema industry and others, such as Greece, whose "heavy artillery" of cultural interests lies in the utilisation of their cultural heritage.

The Greek minister also referred to the European Heritage Monuments List being prepared, that was scheduled recently at the initiative of France, Spain and Hungary and was supported by Greece, stressing that the ultimate aim of the undertaking is its inclusion in a programme of the European Union to enable funds to be found for the preservation of monuments.

[23] Metropolitan of Aetolia & Akarnania passes away at 85

The deceased was born in 1922 in Kalavryta, and graduated from the Athens University's School of Theology.

He served parish priest and senior Archimandrite in Patras, and also as rector of the university church of Kapnikareas in central Athens, as well as senior Archimandrite of the Athens Archdio-cese.

He was elected Metropolitan of Aetolia and Akarnania in 1965.

His funeral will take place early Tuesday afternoon at the Metropolitan church of Aghios (St.) Spyridon in Messolonghi.

[24] Public prosecutor begins address at November 17 group's retrial

Koutzamani said that all of the organisation's activities, "that were decided secretly and in a conspiratory manner and were carried out with deceitful means" harmed the country and marginalised it internationally.

On the question of homicides and attempted homicides, combi-ned with allegations of "political motives" invoked by the defendants, Koutzamani stressed that murders carried out "with premeditation, in cold blood and cowardly, and are followed by moral disdain for the victim through a proclamation, cannot have noble motives."

Referring to the group's structure and functioning, the public prosecutor said that in N17 there was "a one man rule", attribiting a decisive role to Alexandros Yiotopoulos. Speaking about the defendant in question, she said that he was the "absolute leader, the centralised focus of power" who decided about everything in the organisation.

The public prosecutor said that Yiotopoulos "was above all. Koufontinas was next to him and a little behind." The latter, she said, had the role of "chief of staff".

She further said that Yiotopoulos was the moral accomplice of all the activities of N17 and stressed that it was he who triggered the decision among the members of the organisation to carry out the acts included in the arraignment.

Yiotopoulos, according to the public prosecutor, wrote the proclamations with which he justified the selection of the targets and in this way he convinced the members about the correcteness of the selection.

Referring to the act of creating and joining a criminal organisation, Koutzamani proposed a verdict of guilty, as being members of the organisation, for Alexandros Yiotopoulos, Dimitris Koufontinas, Christos Xiros, Vassilis Tzortzatos, I. Kostaris, C. Karatsolis, V. Xiros and D. Georgiadis.

She also proposed an end to prosecution for the same offence, due to the writeoff process, for N. Papanastasiou, Yiannis Serifis, Thomas Serifis and Pavlos Serifis.

Koutzamani will continue her address on Wednesday on the activities of the organisation, that are included in the arraign-ment, and the defendants' involvement in them.

[25] Police investigating abduction of boy later found locked up in a car

The kidnappers had sought one million euros in ransom from the father for the release of the boy.

According to available information, the 12-year-old boy was snatched by unknown individuals on Tuesday morning from the Pefki suburb as he was on his way to school.

At approximately 9:30 a.m., one of the abductors telephoned the boy's father, who is a building contractor, and demanded one million euros as ransom for the release of the 12-year-old.

The father immediately notified the security police, who launched investigations thoughout Attica prefecture. At 12:30 p.m., the boy was found locked up in a car in the Nea Philadelphia district, banging on the car window and calling for help.

The boy was taken to the security police headquarters for questioning, in the hope that he would be able to provide information that would lead to the arrest of his abductors.

[26] Suspect in Vartholomeos homicide to testify on Thursday

The accused suspect has also requested the appointment of a forensics expert to conduct an investigation on the circum-stances surrounding the incident.

The man is alleged to have fatally assaulted Vartholomeos during an altercation in the entrance of an apartment building in the east Athens district of Zografou because he (the suspect) suspected the latter was having an affair with his wife, a long-time administrative assistant at IKA.

[27] Demonstration by disabled seeking more special education staff

Representatives of the groups met Deputy Education Minister George Kalos, who promised that they would soon be briefed on the contents of a bill on special education that is being prepared. He also promised that the ministry will sign a circular that precisely outlines the duties and responsibilities of special education staff by the end of next week.

According to Kalos, another 180 staff will be hired in special education once an appointments process is completed, while 54 secretaries have already been hired for Diagnosis, Assessment and Support Centres, of which 13 are disabled persons.

[28] Officer involved in fatal shooting of robbery suspect released

The officer was charged a day earlier with the felony count after he shot and killed a robber fleeing police in the northern Athens district of Maroussi on Saturday afternoon.

A police report said the officer and his partner were near the fastfood restaurant when the robbery took place and pursued the two robbers as they tried to escape on foot. According to his own testimony, the officer was forced to open fire after one of the two robbers trained a gun on his partner.

On Tuesday, the officer's attorney submitted video footage from the fastfood outlet, while his client maintained that he aimed for the fleeing suspect's legs. Both police officers told investigators that the perpetrators of the robbery were armed, with the second man taking his fallen accomplice's weapon when the latter was shot.

[29] Former judge Constantina Bourboulia arrested

Her arrest was made following a warrant, after a decision by the Crime Department of the Supreme Court which accepted the revocation of Supreme Court deputy public prosecution F. Makris against the ruling of the Athens Appeals Court Council by which Bourboulia was released from prison.

The former judge is being held at the Attica Police headquarters and she is expected to be led to Athens' Korydallos prison on Wednesday until the convening of the Athens Appeals Court Council which will again judge the request for Bourboulia's release.

[30] Four injured in armed scuffle

According to initial reports, a group of foreign nationals made lewd remarks to a woman compatriot, and her escort returned later with a group of friends. In the confrontation that ensued, with the use of guns and knives, four people were injured, who were rushed to the Red Cross hospital.

[31] Prefecture urges precautions against bird flu

So far, there have been no reports of suspected bird flu cases in Greece.

The prefecture circulated a reminder listing the measures that need to be taken, acting on recommendations from the Rural Development and Food Ministry.

These call for poultry bred in facilities situated less than 2km away from wetlands, lakes and other large water reservoirs, where wild birds gather, to be kept confined within closed facilities, while poultry bred in facilities situated more than 2km away from such vulnerable areas should be kept fenced-in.

In addition, poultry breeders who come across sudden and unusually high number of poultry deaths should notify autho-rities immediately, while citizens should report any sick or dead wild birds to authorities to have them tested for the bird flu virus.

[32] Weather forecast: Overcast, windy on Wednesday

Cyprus Affairs

[33] Spokesman: Mobility for Cyprus talks depends on goodwill of both sides

Government Spokesman Christodoulos Pashiardes said that any mobility in 2007 regarding the Cyprus problem would depend on both sides' goodwill to cooperate for the implementation of the July 8th agreement.

Cypriot President Tassos Papadopoulos and Turkish Cypriot leader Mehmet Ali Talat agreed on July 8th 2006, during a meeting in Nicosia in the presence of UN Undersecretary General for political Affairs Ibrahim Gambari, to begin a process of bicommunal discussions on issues that affect the day-to-day life of the people and concurrently those that concern substantive issues, both contributing to a compre-hensive settlement to the Cyprus problem.

The spokesman was asked during his daily briefing Tuesday whether 2007 would be a year of mobility or preparation regarding efforts to solve the Cyprus problem and he was also invited to clarify a statement made by President Papadopoulos in an interview with a Greek newspaper that he continues to believe that in 2007 no time must be lost due to elections but also that in 2007 no mobility will take place because it is a year of preparation.

"President Papadopoulos' statement in that interview was clear. He expressed the conviction that 2007 should not be lost", Pashiardes said.

He added that the Greek Cypriot side's belief is that every opportunity should be exploited in order to achieve progress.

"Surely, this step for progress towards solving the Cyprus problem does not solely depend on us, it also depends on the other side", he stressed.

The spokesman noted that the United Nations and the interna-tional community are now making efforts to promote the July 8th agreement.

He reiterated that the Greek Cypriot side is ready to cooperate to achieve the implementation of the July 8th agreement.

Cyprus has been divided since 1974, when Turkey invaded and occupied its northern third. The Republic of Cyprus joined the EU in May 2004.

[34] New UN Undersecretary General to have Cypriot government's cooperation

Cypriot Government Spokesman Christodoulos Pashiardis said on Tuesday that new UN Undersecretary General for Political Affairs Lynn Pascoe would have the sincere cooperation and assistance of the Cypriot government in his efforts to solve the Cyprus problem.

Replying to questions, Pashiardis said that Pascoe's previous post at the US State Department was ''no serious reason to question his impartiality and objectity in carrying out his current duties.''

''Mr. Pascoe is now a UN official and the UN are not a branch of the State Department,'' he pointed out.

Pashiardis added that Pascoe's current role regarding the Cyprus problem is ''to promote the full and effective imple-mentation of the July 8 agreement and in this effort of his he will have our side as a consistent assistant and sincere associate.''

Replying to questions, Pashiardis said there had been no contact yet with Pascoe.

[35] Spokesman: Turkey's intention to explore waters west of Cyprus is illegal

Turkey's intention to proceed to the exploration of oil and natural gas resources in the coastal waters west of Cyprus constitutes an illegal action, said Tuesday Government Spokesman Christodoulos Pshiardes.

The spokesman was commenting on information that the National Oil and Natural Gas Company of Turkey (TPAO) is ready to explore and exploit oil and natural gas west of Cyprus.

"Fact is, that Turkey is so much addicted to illegalities that its withdrawal from this addiction is becoming a difficult thing to achieve", he said.

Pashiardes noted that "this information was broadcast by the Turkish NTV channel and as it has been proven in the past, news it broadcasts is not reliable, some of it is being dictated".

"We do not comment on unconfirmed information by Turkish TV channels. But let me say that any research on behalf of Turkey for the exploration of hydrocarbon resources in the coastal areas of Cyprus, as mentioned by NTV, is illegal", he stressed.

Commenting on a journalist's remark that last week, while Turkey was threatening Cyprus regarding the oil issue, the Cypriot government was giving its consent in the EU for the opening of two more negotiating chapters with Turkey, the spokesman said that the two chapters are not included in the eight chapters that have been frozen upon a decision by the EU Foreign Affairs and External Relations Council last December.

He said that the Cypriot government intents to examine each of the remaining EU-Turkey negotiating chapters without any negative prejudice and based on the nature of the chapter that the EU intends to open.

[36] Cyprus applies to join the Eurozone on Jan. 1, 2008

The Cyprus Republic on Tuesday submitted an application to the European Union to join Eurozone on January 1, 2008.

The application, signed by Finance Minister Mihalis Sarris and the governor of Cyprus central bank Christodoulos Christo-doulou was submitted to European Commissioner Joaquin Almunia and the European Central Bank.

Copies were also sent to the finance minister of the German EU presidency and the prime minister and finance minister of the Eurogroup presidency Luxembourg.

Sarris expressed confidence that the application would be granted, stressing that Cyprus is fully ready and fulfils the criteria for joining the eurozone in 2008.

[37] Commission receives Cyprus' official application to join Eurozone

The European Commission received on Tuesday Cyprus' official application to join the Economic and Monetary Union on January 1st 2008.

EU Commissioner for Economic and Monetary Affairs Joaquin Almunia's spokeswoman, Amelia Torres said that all usual EU procedures and timeframes will be followed for Cyprus' application.

The European Commission will examine Cyprus' application based on the Maastricht criteria and will then submit to the Economic and Financial Affairs Council (ECOFIN) its recommendation report in mid May. The same procedure will be followed by the European Central Bank.

Both reports will then be examined by the EU Ministers of Finance who will make their own recommendation to the EU leaders.

Torres said that the final decision will be taken at the European Council in Brussels in June. The next stage will be the irre-vocable fixing by ECOFIN of the exchange rate, based on which the Cyprus pound will enter the Eurozone.

Cyprus fulfills all Maastricht criteria for accession to the Eurozone except the precondition for the national currency's participation for two years in the Exchange Rate Mechanism II. Cyprus entered the ERM II in May 2005 and will fulfill this criterion on May 2007.

On January 23rd, Commissioner Almunia expressed his satisfaction for Cyprus' fiscal policy, which he called "a healthy one".

Regarding Cyprus' convergence programme the Commission said that it is based on a realistic macroeconomic plan.

The Republic of Cyprus entered the EU in May 2004.

[38] Deputy culture minister for sport visiting Cyprus

Visiting Greek Deputy Culture Minister for Sport George Orfanos and Cyprus Education and Culture Minister Neoklis Sylikiotis termed their meeting on Tuesday constructive and friendly.

The Greek deputy minister said in a statement that the cooperation protocol, that he will be signing on Wednesday with the president of the Cyprus Sport Organisation, contains all the necessary elements of a dynamic cooperation between Greece and Cyprus in the sector of sport. He also expressed the conviction that cooperation with the Cyprus Sport Organisation will continue with success.

Orfanos mentioned that he and his colleague from Cyprus also exchanged views on school sport issues and its influence on young people.

Sylikiotis said on his part that cooperation between Cyprus and Greece in the sport sector is beneficial for both countries and expressed his belief that this cooperation will become even stronger and more stable.

[39] Greece's ambassador meets with Nicosia mayor

Greece's ambassador to the Cyprus Republic Dimitris Rallis met with Nicosia mayor Eleni Mavrou on Tuesday and discussed cooperation in the sectors of local government and culture.

Mayor Mavrou referred to her immediate priorities as head of the local government and to the particular problems faced by Nicosia, with the Greek ambassador pledging unrestricted assistance to her endeavors.

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