Athens News Agency: News in English, 07-03-06

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

CONTENTS

[01] Gov't comments on economy's upgrading

[02] Papandreou to chair party meeting on Tues.

[01] Gov't comments on economy's upgrading

"Greece has succeeded in the past three years in making substantial progress in the area of fiscal streamlining," Economy and Finance Minister George Alogoskoufis told reporters after the meeting, while he stressed the significant increase in employment and a reduction of the unemployment rate. He also described the upgrading of the Greek economy by the leading global rating agency Fitch, announce on Monday, as indicative of the confidence in Greece's economic policy.

Fitch Ratings on Monday upgraded the Outlook on Greece's foreign and local currency Issuer Default (credit) ratings (IDR) to "Positive" from "Stable", with the ratings affirmed for both foreign currency IDR and local currency IDR at "A", and the Short-term at "F-1", while the Country Ceiling remained unchanged at "AAA", reflecting Greece's membership of the European Monetary Union.

"The outlook change reflects recent improvements in the public finances, the growing fiscal credibility of the government and the expectation of large forthcoming positive revisions to the level of GDP, which will significantly enhance fiscal and other credit ratios" said Chris Pryce, Director in Fitch's Sovereign group, in a Fitch press release on Monday. Development minister Dimitris Sioufas, also addressing reporters after the meeting, said that "in the third year of changes and reforms, growth is extending throughout the entire country, providing new abilities and new opportunities," adding that "the citizens are urging us to carry on with our programme". Defence minister Evangelos Meimarakis, in turn, said that "the building of confidence measures will continue". Before the Inner Cabinet session, Karamanlis had separate meetings with Foreign Minister Dora Bakoyannis, in view of Turkish FM Abdullah Gul's expected visit to Athens, the exact date of which remains pending, as well as with Meimarakis.

Inner Cabinet meeting

The Inner Cabinet on Tuesday discussed matters falling under the competency of the economy and finance ministry, focusing chiefly on Greece's updated Stability and Growth programme, which was discussed at the European Union's ECOFIN (economy and finance ministers') council last week. Minister Alogoskoufis explained that the programme was related to the course of the Greek economy to date, but also with the economy's future course over the next three years. Greece, he said, has succeeded over the past three years in making substantial progress in fiscal streamlining, but added that the streamlining alone would not have been of much importance if it had not been marked by very high growth rates and a reduction of unemployment. Alogoskoufis noted that unemployment was reduced by 130,000 unemployed, adding that the progress in fiscal issues would not have been of significance "were it not for the significant initiatives of the government for safeguarding the social cohesion, such as the increases to low pensions, the OGA (farmers' social insurance/pension fund) pensions and the reduction in taxation rates on households and business enterprises". The economy minister further said that the government's reforms programme "is proceeding, and will be continued in the coming years and will have positive results both for the economy and society". Asked to comment on the Fitch upgrading, Alogoskoufis said "it is a very good indication of the positive course of the economy".

Caption: ANA-MPA file photo of Prime Minister Costas Karamanlis.

[02] Papandreou to chair party meeting on Tues.

The meeting follows an intensive party activity over the weekend on the preparation of the movement's programme, which culminated in a rally on Sunday addressed by Papandreou.

In his address, Papandreou repeated his heated criticism of the government and appeared confident of election victory in the next poll, while at the same time warning of "major interests" attempting to manipulate and control the party, interests he said want PASOK to "compromise".

In fact, Papandreou's address swayed back-and-forth from detailing PASOK's positions on a variety of issues to airing charges against the government.

He echoed other top PASOK officials' accusations over the past week over the government's culpability in the mismanagement of pension funds' assets, while referring to "shadowy games" between riot police and masked self-styled anarchists that often infiltrate protests through central Athens before engaging in vandalism and clashes with authorities.

"You cannot identify the younger generation with masked troublemakers, slackers and the apathetic," he said in reference to the government, noting that education issues should not be handled by the public order ministry, an indirect rebuke over the role of police during protests.

In turning to one of the three "axes" of PASOK's programme, as he said, Papandreou touched on the "green" aspect of economic development, while at the same time charging that the government is only interested in selling-off forestlands and coastal areas, as seen from its intent to revise Article 24 of the Constitution.

Regarding foreign policy, he said the government is falling back on mere "public relations tours", accusing it of being absent from international developments.

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