Athens News Agency: News in English, 07-08-08

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

CONTENTS

[01] Inner Cabinet approves draft law on nat'l Social Cohesion Fund

[01] Inner Cabinet approves draft law on nat'l Social Cohesion Fund

Speaking to reporters after the meeting, Economy and Finance Minister George Alogoskoufis called the bill an important step in the reform of social policy.

The Fund will finance programmes for boosting the incomes of citizens who were below the poverty level, in accordance with the European Union (EU) criteria, Alogoskoufis said, adding that the Fund's aim was to improve the effectiveness of the welfare state.

Asked whether the bill constituted a campaign benefit ahead of election, Alogoskoufis said the government has achieved fiscal adjustment and consolidated fiscal discipline in the state's finances, adding that it remained committed to fiscal discipline until it achieved a balancing of the budgets in 2010.

He stressed, however, that this did not mean that the government would not implement its programme for reinforcing growth, employment and social cohesion.

To a question regarding opposition accusations that benefits recently announced by the government were a pre-electoral ploy, he said that such devices were employed by preceding governments "in times of weakness."

Development Minister Dimitris Sioufas, in turn, said the bill was an important conquest for the welfare state, and stressed that it's approval by the prime minister and Inner Cabinet constituted the materialisation of a platform commitment for strengthening social cohesion.

Employment Minister Vassilis Magginas noted the exceptional importance of the Inner Cabinet's decision for the establishment of the Social Cohesion Fund.

Up until the present, he said, substantial outlays were being spent without having the corresponding effectiveness. Today, however, the resources would go to targeted actions, and there would be harmony between the resources and their effectiveness.

To another question, Magginas said none of the measures being decided constituted a pre-electoral benefit, but comprised the materialisation of the government's platform commitments.

Caption: ANA-MPA file photo of the Maximos Mansion in Athens, the prime minister's office.

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