Athens News Agency: Daily News Bulletin in English, 16-09-12

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

Monday, Sept 12 2016

CONTENTS

[01] Greece 'very close to positive developments' on debt, Greek PM predicts at TIF

[02] Greek PM presents road map to the future

[03] Athens welcomes Geneva truce plan for Syria

[04] Public-sector media have 'irreplaceable role', says State Minister Pappas at TIF

[05] Labour minister unveils measure to ease OAEE debt burden for self-employed, talking to ANA

[06] Energy Minister Skourletis addresses Greek-Russian energy forum at TIF

[07] Restricting TV channels to four will reduce diversity in the media, ND's Hatzidakis says

[08] Government will stand by flood-stricken Thermaikos, Charitsis says

[09] Management of NPLs key to the sustainability of banking system, National Bank CEO says

[10] Wildfire rages on Thassos for second day; call by President Pavlopoulos

[11] Dimitris Senikidis wins silver medal in F20 shot put event at Rio Paralympics

[12] Egnatia Highway closed for third day from Kili to Siatista junctions

[13] Rain causes serious flooding in Argos

[14] Athens News Headlines at a glance Politics

[01] Greece 'very close to positive developments' on debt, Greek PM predicts at TIF

Replying to main opposition New Democracy's repeated call for elections, meanwhile, Tsipras said that ND leader Kyriakos Mitsotakis was still betting on a 'left interlude' instead of supporting the country, which he said needed stability and not elections at this time.

Noting that Greece was an oasis of stability within a large destabilised region, Tsipras said there would be little to gain by bringing elections forward:

"We have a goal and a plan and now also allies in Europe. We can go after and achieve more," he said, noting that growth was expected to take off in 2017.

"Whether this will last depends on the negotiation with the EU and the IMF. We would like to have the main opposition as an ally but, unfortunately, we find them against us once again," he added.

Greece's debt was not a bilateral issue but also concerned the European Commission, the European Central Bank and the International Monetary Fund (IMF), Tsipras pointed out. Germany's views would play a crucial role but were not the only ones to consider, he added.

"It is a problem that has an international dimension, because the solution to this problem will play a decisive role for growth in the European economy, which in turn determines the global economy," he said, noting that there was no disagreement with Germany.

Germany believes that rules must be followed and Greece was doing this, but expected its partners to do likewise, Tsipras said. He noted that the reforms carried out by Greece were "a pleasant surprise" and that the conclusion of the first review amounted to 75 pct of the Greek programme.

"We have not reaped any results due to the Germany-IMF dispute," Tsipras pointed out, adding that political developments in a single country could not act as an obstacle to the changes that Europe needs.

Referring to the prior actions that were still pending for the conclusion of the review and a full disbursement of the first tranche of loans, he said these were primarily of a technical nature.

With respect to the second review of the programme, Tsipras said the outstanding prior actions were also largely technical and that Greece intends to "run, to accelerate and finish the process of implementing the agreements." There were also political issues, primarily concerning labour regulations, he added, but here Greece would treat European practice and law as its last line of defence.

Questioned about primary surplus targets and the creditors' refusal to lower these further, Tsipras noted that the surplus targets after 2018 would depend on the decisions taken for Greece's debt on a European and international level. He appeared confident that negotiating lower surpluses was feasible, however, and said the government will aim to do just that.

"If after 2018 we have the option of smaller surpluses, we will have a fiscal space of 3.0 billion euros," he noted, adding that he will come to TIF as prime minister in two years time to outline how this will be allocated. The main goal will be to ease the taxation burden on businesses, gradually introduce a fairer property tax and take steps to support the weak in society, as well as education and health.

Tsipras outlined plans to make Greece an energy hub in the region, while noting that the construction of the Trans-Adriatic Pipeline (TAP) had largely achieved this goal. "To the degree that there are other pipelines at our borders, we will be quick to welcome them in the framework of EU treaties and the rules of free competition," he added, saying talks were already underway with Italy and a deal already set up between Greece's public gas company DEPA, Russia's Gazprom and an Italian firm.

The prime minister was also questioned about the ongoing case against the former head of Greece's independent statistics authority Andreas Georgiou, investigating allegations that he artificially inflated ELSTAT's estimate of Greece's 2009 deficit to 'facilitate' the country's entry into bailout programmes. Tsipras pointed out that the fallout concerning ELSTAT's figures in 2009 primarly concerned the ND and PASOK parties, which were then in power, not SYRIZA.

He underlined, however, that Greek justice was independent and that the investigation will be carried out in depth, to shed light on what actually happened, while the discussion did concerned neither the third bailout programme nor the discussion about easing Greece's debt.

"The Europeans have not asked that Greek justice not investigate what happened," he added, while expressing his surprise at Georgiou's statement that the country will not receive all it can for the debt if the investigation continues.

On the migration and refugee issue, Tsipras asked Greece's European partners to speed up implementation of the EU-Turkey agreement with respect to resettlement of refugees, and noted that Turkey had largely kept its end of the bargain, giving Greece some much-needed respite.

Talking about privatisations, Tsipras said the government had striven to escape a "firesale" mentality and better defend the public interest, while "acting within the framework laid out by the agreement." While the revenue from privatisations went toward paying down the debt, the government had worked hard for developmental investments and higher prices, he said. "We succeeded in the case of COSCO, the Hellinikon site and this is what we want for Thessaloniki port and the rest," he said.

Tsipras referred to pension reforms, pointing out that 90 pct of pensioners had not seen their main pensions reduced, despite the opposition's dire warning that this would be impossible, and that only 5 pct suffered drastic reductions, while 10 pct had seen a small reduction.

He promised that the government will provide incentives to protect jobs in the television stations that did not receive a nationwide general content licence and said the revenue raised by the relevant tender was "unexpected" and will be spent on unscheduled actions.

Referring to agricultural policy and the adverse effect of the Common Agricultural Policy (CAP), he said the goal was to support production and invest in good-quality, competitive products.

"We have seen 'two speeds' generated in Europe due to CAP, with the South trailing behind. In our country, especially, there was a twisted logic and chiefly a devaluation of cooperative production.

There must be collaborations jointly seeking a restructuring of agricultural production and a reduction of production costs, as well as tackling unethical commercial practices in the food chain, by the so-called cartels. We must direct all the tools we have, such as the Juncker plan, to investments that boost the productive base," he said.

[02] Greek PM presents road map to the future

In 2008, before the crisis, Greece had a per capita income of 98 pct of the EU average and in five years this fell to 68 pct, a percentage similar with that of Greece compared with European Economic Community countries in 1975. Within this five-year period and the catastrophic choices of New Democracy and Pasok, one fourth of our national wealth was destroyed, available income fell by 40 pct, unemployment soared to 28 pct and poverty widened to 38 pct. Today, with all signs and indexes showing that this cycle is closing, we have to plan the next day, at least for the next five years. In five years we have another great anniversary. It will be 200 years since the Greek Revolution which laid the foundations for the creation of the Greek state, the PM said and asked: what Greece we want for 2021? what is the Greece we want for the 21st century?

I think that only a few will disagree with the goal of a Greece with an established presence in the core of the EU as a really modern, European, democratic state. A Greece as a pole of stability, a beacon of democracy and social justice. A Greece that will have left behind for good the five years of crisis and the mistakes that led to that.

The question, however, is how can we reach this goal? Many will say we can't reach it unless our partners change their stance. I will not disagree that this is important. But it is not the only thing. In fact, I would turn this logic around. I would say that we can reach this goal only if we change our way of thinking and strategy. If we stop having in our minds only public finances and we turn towards changing the country's productive model, creating new wealth and changing the way of distributing this wealth, to innovation, research and healthy business activity.

Our country has huge comparative advantages. Beyond the natural environment and tourism, we have a unique geographical positions, making us a hub for trade and energy routes of the future.

We have inexhaustible and unused alternative energy sources, we have the ability to produce unique in quality farm products and the most significant but totally unused advantage: exceptional scientific resources, highly-trained young scientists, who can create new wealth through a combination of research, innovation, new technologies and and start-up businesses.

We can achieve the goal of a new Greece by 2021 if we join forces to create new wealth and ensured that this wealth will be distributed fairly, not to those who share the benefits of growth before the crisis as lute to make tax-free earnings in foreign banks, or the state-fed oligarhs, with the off shores and the easy money, whose interests are strongly defended by the New Democracy of Mitsotakis. To distribute this wealth to the people of work, creation and production, to the people of science and innovation. This is the Greece we have strengthen. A Greece of social justice, equality, democracy and transparency. This is our strategic goal to become equal among equals in a 21st century Europe. In a Europe where we fight to change its orientation. A Europe where the people will have the biggest say and not technocrats.

The Greek PM said that this transition for Greece and Europe won't come just like that. It will be a result of a constant fight, a daily hard battles which will bear fruit at the end. Tsipras said this fight has already begun offering fruit as the image of Greece was changing. He noted that a 1st Euro- Mediterranean Summit held in Athens offered evidence of this change. Greece is no longer a pariah country, but transforms into a leader of political developments in Europe. With specific interventions to overcome economic and structural inequality between North and South, to put an end to the policy of austerity which leads to poverty and social exclusion and to deal with the challenges of a refugee crisis.

The Greek PM said that this change of the country's image abroad was not a natural phenomenon or just luck, but the result of specific policy choices and battles. We managed to escape from commitments made by the previous government after long and hard negotiations. We achieved lower budget surplus targets, offering a breathe to the society and the economy. In 2015 we pledged for a budget target of -0.25 pct and we presented a surplus of +0.7 pct and in 2016 we will continue surpassing targets.

The agreement reached with our partners last summer offered a compromise leaving the door open for tomorrow. We stopped economic and social irationality but the burden falling on the society remains heavy. I fully understand that the tax paying abiilty of lower incomes has been exhausted, but today, for the first time since 2009 we can finally have a realistic road map for the recovery of the economy and to lower burdens.

Figures so far show that budget revenue are surpassing targets, putting an end to any talk of possible additional measures. The country's GDP grew in the second quarter by 0.2 pct compared with the first quarer and all estimates show that we return to positive growth rates in the second half of 2016. The country's economic sentiment index grew to 92.5 points in August, the best performance in the last 12 months, while tourism sets successive records, with the number of visitors expected to significantly surpass last year's record of 26.1 million.

That's why we are at a turning point. There is no room for complacency but we all need to concentrate to move forward, to plan the road ahead step by step. The first step is to positively conclude a second review of the Greek program soon. In the labor relations issue we have a strong ally in negotiations: European laws. We cannot accept anything less than that. Introducing collective bargaining agreements is a fundamental precondition to safeguard workers rights in our country.

The second step is to finalize the measures and ways of debt relief, in continuation of a decision by the Eurogroup.

The third step is to include Greece to European Central Bank's QE program to reduce borrowing costs, restore liquidity, lifting capital controls and return to capital markets.

The fourth step is to achieve high economic growth rates in 2017 and the fifth step is a leap to a sustainable growth.

We want to turn recovery to fair growth. This is the big challenge for the goverment.

A basic condition of fair growth is to move to a extrovert economy, based on supporting labor, innovation, building networks and regulating business environment.

Economic competitiveness is not achieved with cutting payroll cost, on the contrary, raising wages and redistributing incomes is a precondition of growth and not its result.

Innovation, because the country's real capital are its people. Building networks and supporting social economy. We want modern cooperative formations.

This is the only road to deal with the number one problem of the country: unemployment.

A prolonged recession did not only shrank the country's GDP but its ability to create income as well. Investments fell by 60 pct. In order to boost investment activity we promote a series of measures and initiatives, using all funding tools to create a Development Fund to fund investment plans, small- and medium-sized enterprises and participating in taking business risks.

We exploit a Juncker package, introducing a new development law and offer a 12-year stable tax environment for large foreign and domestic investments of more than 20 million euros. We also simplify licensing procedures, support healthy businesses and focus on sectors with comparative advantage such as agricultural production, IT and communications, energy, environment, transport, culture and tourism.

We protect and exploit state assets while we fully exploit community funds. But this is not enough so I call all domestic and foreign investors to take advantage of business opportunties and a favorable framework in the country, saying: Invest without any hesitation to Greece. It will be mutually beneficial for you and the economy.

The Greek PM said that after completion of these steps, the country will exit the program at the end of the next two years and reiterated the government goals to cut budget surplus targets to 2.5 pct of

GDP in 2019 and 2.0 pct in 2020. Tsipras said the government will achieve to markedly expand the tax base in the next two years by introducing a new legislation on expanding the use of plastic money, based on the standards of all advanced states. The government will also present a law for the voluntary disclosure of income.

The Premier said in two years, the government will have the necessary fiscal space to reduce indirect taxes and to lower taxation on property replacing ENFIA with a new more fair tax. He stressed that the government to implementing fully its commitments made in the 80th TIF last year: protecting home owners, supporting farmers, maintain ADMIE under state control, offering healthcare to 2.5 million people with no social security, preserving main pensions and abolishing a zero deficit clause for supplementary pensions, reforming civil admiistration, presenting a new regulatory framework for education, taking measures to support new scientists, revising legislation on public works, voted a law on combatting tobacco smuggling and fuel smuggling, reviewing tax evasion lists and finally completed a tender for TV licenses in a fully transparent way beneficial for public interests. The 246-mln euros to enter state coffers will be used to cover the needs of social state.

Tsipras announced that this money will be used to fund a program offering food to another 60,000 pupils and students in the poorest municipalities, covering 260,000 pupils around the country, offering access to additional 15,000 children to kindergardens and to fund an ambitious program offering incentives to thousands of young scientists to return to Greece.

Part of this money will be used to improve services offered by state hospitals with the hiring of 10,000 doctors and medical assistance personnel.

The Greek PM said that the government was moving towards changing education in the country.

"It is time to move from the brain drain era to the brain gain period," he said.

He said the government would pay 900 million euros to expand a Social Solidarity Income in 2017.

The most crucial battle was that against unemployment, boosting employment and protecting work.

Tsipras said the first positive results were visible as unemployment fell to 23.5 pct in May from 26.5 pct at the end of 2014 and new hirings set a 15-year record in July.

Referring to big infrastructure projects, the Premier said the government managed to change a chaotic situation prevailing in the past and has achieved to restart all big project, to renegotiate contract on road projects saving 765 million euros and to reschedule the monitoring of timetales for these projects. He said that all five road projects will be completed by the end of the first half of 2017. Tsipras also referred to the agreement with Cosco for the port of Piraeus and noted that a project in Helliniko was nearing the point of work beginning. The government also signed an agreement for the 14 regional airports maximizing benefits for the state.

Referring to Thessaloniki, the Greek PM said binding offers for the port were expected by the end of the year, with five candidates expressing interest so far. The government seeks to implement a plan for private investments up to 180 million euros in the port in the period 2017-2021. Another project expected to be completed by 2020 is the Metro, an 1.5 billion euros project.

Norther Greece will also benefit from a series of other projects such as completion of a railway line (high-speed, fully electrical), reconstruction of Thessaloniki airport, building a natural gas pipeline

TAP with a project of 2.0 billion euros creating more than 8,000 job positions. Alexandroupoli will be transformed into a commercial, logistics and energy hub for the Balkans with a new port, a railway line with Burgas and building an IGB pipeline and a LNG terminal.

Tsipras said the government was seeking to upgrade the Thessaloniki International Fair and the city as weel and that China will be the honored country in the 82nd TIF in 2017.

The Premier ended his speech with a political commitment, offering a breather to hundreds of thousands of small and medium-sized professionals with heavy debts. He announced that all social security debts becoming arrears up to December 31, 2016 will freeze, without write off, allowing professionals to continue working.

The Greek PM said the government's plan was building wide and stable social alliances in a national effort to find our footing after the country learned its lesson from the past and expressed his optimism that the country will achieve its goals.

[03] Athens welcomes Geneva truce plan for Syria

"The Ministry of Foreign Affairs welcomes the ceasefire agreement the United States and Russia announced on Syria.

All parties must fully implement this agreement to immediately stop the bloodshed, protect civilians and allow for the unimpeded and seamless distribution of humanitarian aid.

This truce will hopefully be an important step in the direction of an agreement that ultimately ends a long-lasting civil war and the drama of the Syrian people," the announcement said.

[04] Public-sector media have 'irreplaceable role', says State Minister Pappas at TIF

ANA General Director Michalis Psilos asked for the state's assistance in preventing content theft from the ANA, with Pappas noting that such phenomena were part of a prevailing media "culture" in Greece that the government was prepared to stop, noting a recent such example involving the use of material broadcast by ERT.

"The public agency must claim its legal rights and we will proceed to make a register of the online media, where we can have some sort of supervision of what is happening in this area," he said, announcing an end to the "raiding" of public news providers content.

[05] Labour minister unveils measure to ease OAEE debt burden for self-employed, talking to ANA

"The self-employed workers that were outside the system could not pay off their old social insurance contributions. If they start paying their current contributions from January 1, 2017 they will be considered up to date insurance-wise and we will put the old debt 'on hold' and see how we will deal with it," Katrougalos explained.

The labour minister said that this would be one of the key issues that the government will negotiate with the institutions.

He also announced that a measure restricting the amount of backdated payments for pensioners to 10 pct of their pension would be added to a bill coming to Parliament next week.

The minister repeated that there will be no cuts to pensions where the main and supplementary pension is less than 1,300 euros in total, saying that this represented 20 pct of pensioners. He admitted, however, that most pensioners will see some small reduction and that roughly 5 pct will see their pensions slashed by as much as 40 pct.

Asked about the prospect of job losses in the media after the closure of television channels, Katrougalos said the government would seek to ensure that employees received all the compensation due under the law, initiating legal action against those that failed to comply, while also listing incentives that the government intends to provide to protect jobs, such as the 'employment cheque' to subsidise jobs.

[06] Energy Minister Skourletis addresses Greek-Russian energy forum at TIF

Skourletis said that renewable energy and energy conservation and efficiency were areas of strategic importance that allowed Greece to combine its energy sources in the best possible way.

He also referred to a project to be undertaken by Greek and Russian scientists on a Russian public building to save energy and achieve the greatest possible energy upgrade. The minister said that this was an opportunity to pass from theory to practice in the cooperation between the Greek centre for renewable energy KAPE and the Russian Energy Service.

The minister predicted that a state-controlled Public Power Corporation will continue to make a decisive contribution in the next phases of Greek energy policy, retaining its leading role. He also announced that the government was mulling new prospects in cross-border cooperation for RES, as well as new regulations for geothermic energy and biomass.

Russian Energy Minister Alexander Novak said that Greece's experience in promoting RES would allow it to participate in joint projects and investments involving the development of technology and the energy market. He said that RES development was a priority for Russia, which has to reduce carbon emissions by 60 pct by 2050.

[07] Restricting TV channels to four will reduce diversity in the media, ND's Hatzidakis says

He accused Prime Minister Alexis Tsipras of doing the opposite of all he promised at the Thessaloniki International Fair (TIF) two years ago, such as on the issue of non-performing loans.

The country lacked governance and was in a state of chaos, with the weakest in society bearing the brunt of the problems, Hatzidakis said.

"Paradoxically, in relation to the expectations that it cultivated, the only thing that we can expect from this government is that we will remain in the memorandums for ever," he said, stressing the need for the country to get a 'new start'.

"We don't promise miracles. We do, however, promise to follow the path followed by other countries, such as Ireland and Cyprus, who were in memorandums and exited," Hatzidakis added, while dismissing talk of ND 'infighting'.

"ND is proceeding united. The problems will henceforth be faced by SYRIZA," he said.

[08] Government will stand by flood-stricken Thermaikos, Charitsis says

Charitsis said that money for short-term work on infrastructure will be disbursed on Monday, while a detailed description of the damage and needed work will be carried out.

Financial News

[09] Management of NPLs key to the sustainability of banking system, National Bank CEO says

The Greek banker said that 2015 was marked by the successful recapitalization of the country's four systemic banks and noted that banks managed to secure a large sum to cover their bad loans.

"The management of these capital in the future will determine the sustainability of the system," Fragiadakis said.

He added that factors such as boosting confidence among depositors, economic stability and a recovery of macro-economic figures were necessary conditions for a medium-term and long-term safeguarding of improving bank results. Fragiadakis noted, however, that the banking system itself must maximize its available capital by finding a balance between developing new activities and improving portfolio quality.

Banks can contribute in the improvement of economic conditions for both businesses and households in two ways: the first is by boosting funding and credit and second by trying to raise productivity of both enterprises and households, hit by a drastic decline in income and currently facing difficulties in repaying their debts. Banks must focus on this part of the population, hardly small in size, offering drastic and long-term solutions.

"National Bank, enjoying a strong liquidity position, continues its funding programme, but at the same time it is focusing on new funding actions with international partnerships to help enterprises," Leonidas Fragiadakis said, noting recent partnerships with EBRD and the European Investment Fund for small- and medium-sized enterprises which will offer liquidity to SMEs.

He stressed that a fair management of non-performing loans was an one-way road for growth and to maintain respect towards depositors and shareholders.

General News

[10] Wildfire rages on Thassos for second day; call by President Pavlopoulos

A meeting was held on the island on Sunday morning to assess the situation, with the participation of Alternate Minister for Citizen Protection Nikos Toskas, Rural Development and Foods Minister Vangelis Apostolou, four Kavala MPs, the Kavala Region deputy governor, the island's mayor and the General Secretary for Civil Protection.

Toskas reported that nearly all the country's aerial fire-fighting forces had been deployed to get the fire on the island under control and prevent the situation from deteriorating further, especially for mountain villages. Meanwhile, more than 80 fire engines, 120 fire men and many volunteers among local residents were fighting the flames on the ground.

The meeting conducted an overall assessment of the situation after the fire began at dawn on Saturday, with Toskas noting that the state machinery was in full readiness and that a state of emergency had been declared on Thassos, speeding up payment of compensation and restoration of burnt areas.

Among others, the fire has completely destroyed hundreds of hectares of olive trees and hundreds of beehives, as well as an still unknown area of virgin forest, creating fears for winter flooding in coastal areas.

Operations to put out the fire resumed at dawn on Sunday, while Apostolou and Toskas inspected the extent of the fires in a helicopter, ahead of Sunday's meeting.

According to Thassos' mayor, fire-fighting efforts during the night had been largely successful in preventing the fire from spreading to inhabited areas and farm land, though some homes were burnt on the fringes of mountain villages that had already been evacuated, so there were no deaths or injuries. The nuns at the Agios Panteleimonas and Archangelos nunneries returned after being evacuated on Saturday.

[11] Dimitris Senikidis wins silver medal in F20 shot put event at Rio Paralympics

President congratulates Senikidis on silver medal in Rio

President of the Hellenic Republic Prokopis Pavlopoulos on Sunday sent a telegram congratulating Paralympic athlete Dimitris Senikidis on winning the silver medal in the F20 shot put event at the Rio Olympics.

[12] Egnatia Highway closed for third day from Kili to Siatista junctions

The fire brigade announced that pumping was completed on Sunday and the road is being washed clean of mud that covered about one kilometre of the road's surface.

[13] Rain causes serious flooding in Argos

Many basement and ground-floor homes and shops were flooded, while two people had to be rescued from their homes by the fire brigade as a precaution.

[14] Athens News Headlines at a glance

TO VIMA: "Black market for cash!"

ETHNOS: "No more confiscations of company payrolls"

AVGHI: "The social state set up again"

RIZOSPASTIS: "No compromise with poverty and the anti-popular attack"

ELEFTHEROS TIPOS: "'Troika 'blackout' for Tsipras' fiesta"

REAL NEWS: "'ND president: I will 'finish' with Exarchia in the first month"

VRADYNI: "New cuts to supplementary pensions"

PROTO THEMA: "Tsipras back on the tough going"

KONTRA NEWS: "The 'vultures' want to snatch our houses for free"

TO PARON: "Confiscations for 1,573,858 debtors"

DIMOKRATIA: "[Former prime minister Costas] Simitis' swap an odious crime"

TO HONI: "The South awakens"

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