The Hellenic Radio (ERA): News in English, 10-12-02

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From: The Hellenic Radio (ERA) <www.ert.gr/>

CONTENTS

[01] ECB Decisions on Interest Rates & Liquidity

"The European Central Bank will continue its program of buying government bonds", said ECB head Jean Claude Trichet on Thursday in his effort to calm down markets which doubt Europe's moves to address the financial crisis. ECB head promised injection of liquidity program would go on but refused to give figures for the amounts involved which gave rise to frictions among the members of ECB administration board. Interest rate remains at 1% historical low record. Within this climate European leaders refuse that the euro is in danger and belied that an extraordinary Summit Meeting is scheduled for the weekend. In the meantime, speculative domino threatens south European countries. Borrowing cost hit record high in Portugal, Spain and Italy while neither France avoided speculators' attacks. Spain assures that it would not need financial support.

Monetary Policy Measures Unchanged

European Central Bank monetary policy would continue unchanged said ECB chief Jean Claude Trichet in an interview in Frankfurt, on Thursday after a meeting with strong pressures for new measures.

Jean Claude Trichet said that current 1% interest rate would remain as pressures on prices remain more or less at same level and in any case within ECB chart limits or lower but close to 2% although he spoke of "uncertainty" on this figure.

According to Eurostat report annual inflation rate was at 1.9% in November, therefore within the above limits said Trichet.

ECB chief announced that bank system refinancing would continue with the present interest rate for as long as necessary and certainly till April, 12, 2011 as well as monthly and three-month financing which expire on January, 26, February, 23 and March, 30. He added that buying government bond program would also continue.

Mr. Trichet said the above announcement indicate that ECB monetary policy remains unchanged.

Furthermore, ECB chief suggested eurozone member states to adopt long-term fiscal stability plans and reforms aimed to purge national economies if they have fiscal deficits, low competitiveness as expressed in the exchange and commercial balances.

Sources: ÍÅÔ, ÍÅÔ 105.8, ÁNA-ÌPA

News item: 50226

[02] Focus on Labour Relations

The next days are considered crucial for the determination of terms and preconditions for the implementation of business contracts as provided by the memorandum. Although yesterday's meeting was cancelled, employers associations have an open line of communication. It seems that there are points of convergence on extension of sectoral contracts not represented in unions, length of business contracts and percentage of salary cut. Furthermore, Hellenic Federation of Enterprizes and Industries(SEV) have raised issues such as cut down cost on overtime and Saturday work, suggesting a day off.

Points of Convergence

Statio radio NET 105.8 says that social partners have agreed on two -year length business contracts with up to 12% cut in salary -as provided by relevant union - but ban in lay offs during that period. In businesses with less than 20 employees, negotiations will be held with the respective sectoral unions while the right to be included in collective labour contracts of employees without union representation will be maintained.

GSEE (General Confederation of Greek Labour), however, has kept a distance from the agreement claiming clear determination of terms where a business contract could be lower than sectoral contract. It also asks business contracts to be signed in businesses with employee unions.

In the meantime, SEV has suggested overtime and Saturday work be paid with days off.

Employment undersecretary Basilis Gegeroglou said the ministry in no case would adopt theses proposals describing them as extreme.

Source: ÍÅÔ - ÍÅÔ 105.8 - ÁNA-ÌPA

News item: 50186

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