Macedonian Press Agency: News in English, 99-09-04

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From: The Macedonian Press Agency at http://www.mpa.gr and http://www.hri.org/MPA.

Last Update: 23:27 GMT+2

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[A] GREECE

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[A] GREECE

[01] THE PRIME MINISTER'S SPEECH ON THE GOVERNMENT'S ECONOMIC POLICY

Web Posted: 20:56 GMT+2

Reviewing the past year the assessment is positive, stated the prime minister stressing that steady steps have been made, while the necessary pre-conditions are being created for progress and prosperity, for security and peace and for social justice and solidarity.

The prime minister referred to the election of the new president of the republic and stated that it should not be a cause of confrontation for the political parties but on the contrary, it should be an expression of the unity of the Greek people, reiterating that current president Kostis Stephanopoulos will again be the choice of the governing socialist party of PASOK.

He said that the course toward the EMU has political stability as a pre- condition, while every factor that can upset it must be prevented, adding that Greece's bid for joining the EMU will be submitted by mid March of the year 2000 and based on the practice so far, the Greek application will be considered in the Summit meeting in June 2000. Mr. Simitis said that since 1993 has been followed a course that brings Greece very close to its joining the EMU, stressing that in this course has participated every Greek and finally, the sacrifices of the people give the desired results. He said that he had stated repeatedly that the EMU is not an end in itself but it is a significant means for Greece in order to achieve its big economic, social and national goals.

The prime minister referred to the package of benefits he announced on Thursday and added that in the next few years the growth, prosperity and solidarity of the Greek society will be based on three factors. Namely, the 15 trillion drachmas worth Development Plan which covers spending in the public and private sectors, the 45 trillion drachmas Social Budget which concerns public and private sector spending for the period 2000-2004 and will finance projects of social support, social networks, solidarity and cohesion, and the 9 trillion drachmas that will be allocated within the framework of the agriculture policy and the Community Framework of Support and will guarantee the income of the farmers and the growth of the farm sector.

The prime minister stated that the farm sector enters a new period of competitiveness in the new decade and the Greek farmers should realize the significance of the changes in the production models in order to safeguard their prosperity. He said that the transformation of agriculture will depend on the investments, infrastructures, technologies, quality, progressive production choices, institutions and the mobilization of the individual farmers.

On the social policy followed by the government, the prime minister stated that the social spending shows an upward course for the past years and gets closer and closer to the European Union average. He also said that wages, taking under consideration the taxes imposed, have increased by 9.4% in the period 1994-1998, while special groups of employees have enjoyed even bigger increases adding that similar improvements have been made to the pensions and the increase of the Social Solidarity Benefit the pensioners receive means that after 12 months there will be a 20% additional overall increase to their income.

He said that the country now has a complete National Action Plan on Employment aimed at mobilizing all the production forces in the effort to counter unemployment.

Prime minister Simitis stated on Greece's place in Europe, that the United Europe is not some kind of an automatic pilot but a dynamic process and most benefited will be those who have knowledge and plan, stressing that his government has both for the 21st century Greece. He said that his policy guarantees a strong Greece which will be at an equal footing with the rest European Union members, a Greece that it is competitive, enjoying social cohesion and solidarity. A Greece of education and culture that will develop its national identity even more within the united Europe.

[02] PAPANTONIOU: THE 500 BILLION DRACHMAS WORTH BENEFITS GIVEN TO THE WEAKER ECONOMIC CLASSES ARE UNPRECEDENTED

Web Posted: 16:57 GMT+2

Mr. Papantoniou reiterated that the biggest part of the benefits offered will be covered by the taxation imposed on the stock exchange transactions. He clarified that if the transactions volume remains at today's levels the revenues will be hundreds of billions and therefore, the burden on the state budget will be very limited possibly lower than 200 billion drachmas.

Mr. Papantoniou also stressed that the three goals set by the government have been met namely, the public sector reform, the increase of investments and the structural changes, while he reiterated that inflation will be limited to 1.5% by the end of the year. The minister also predicted that the public deficit will drop to 1% by the end of 2000 and by 2001 it will be zero percent.

He reiterated that inflation will be limited to 1.5% by the end of the year while the interest rates will continue to drop. Mr. Papantoniou stated characteristically that by the end of next year the business loans will be granted with an interest rate of 5-6%.

Regarding the sector of investments, he admitted that there had been problems in the Delors package funds but reminded that the absorption rates have been restored and will be maintained at a high level in the 3rd Community Framework of Support funds as well, which favor especially Thessaloniki and northern Greece in general, underlining that by the year 2005 at the latest the infrastructure network projects in the region will be completed.

On the structural changes in which there have been delays, Mr. Papantoniou maintained that the government has abolished the "Napoleon era like" organization of the Greek state by moving certain powers and authority to the regions away from the capital. He also said that in the past 2 years the government has collected 2.5 trillion drachmas, or 6.5% of the GDP, from the privatization of state-owned businesses.

[03] REPPAS: WE ARE FOLLOWING A POLICY OF PRINCIPLES

Web Posted: 15:51 GMT+2

The surplus and the transfer of funds from profit-making activities is being used today to reinforce the social justice aspect in the government policy, said Mr. Reppas and added that the goal is for Greece to enter the 21st century as a country that is strong both at an international level and domestically.

The government spokesman categorically denied the rumors on early elections and stressed that those who spread them have been politically paralyzed by the recent announcements made by the prime minister. Mr. Reppas called on all those to commit themselves that the next parliamentary elections will be held according to schedule namely, in September of the year 2000.

[04] SIMITIS: THE GOVERNMENT HAS A CLEAR POLITICAL WILL TOWARD MAKING NORTHERN GREECE A LEVER OF DEVELOPMENT

Web Posted: 15:51 GMT+2

The prime minister observed that the necessary efforts are being made in order to change the existing situation in the region, concluded that steps have already been made and after listening to the demands expressed by the representatives of the local authorities referred to them. To some of them gave direct answers, while others were referred to the responsible government ministers.

[05] THE PRIORITIES OF THE GREEK POLICE ARE TO GUARD AND INSULATE THE BORDERS AND TO TACKLE CRIME

Web Posted: 15:51 GMT+2

Chief of the Greek Police Ioannis Georgakopoulos pointed out that the efforts are focused now on countering illegal arms trade, drug trafficking and prostitution rings.

[06] FURTHER DROP OF INFLATION IN AUGUST

Web Posted: 15:51 GMT+2

According to the news agency Reuters, inflation in the month of August dropped to 2% from 2.1% in July.

[07] MR. SIMITIS' SCHEDULE

Web Posted: 15:51 GMT+2

On Sunday morning, he will visit Thessaloniki's International Trade Fair management building and the exhibition grounds, while at 1pm he will give a press conference at the "Ioannis Vellidis" Conference Center, at 6pm he will visit the archeological site of Dion and at 8:30pm he will leave for Athens.

[08] REACTIONS OF THE OPPOSITION PARTIES TO THE SPEECH OF THE PRIME MINISTER

Web Posted: 15:51 GMT+2

New Democracy spokesman Aris Spiliotopoulos commented that the measures are of pre-election nature and display the old party politics followed by the Simitis government.

The references of the prime minister to the Yugoslav crisis are an effort to whitewash the murderous policy followed by NATO and the EU and a falsification of history mentions the Greek Communist Party.

The Coalition of the Left stresses that the prime minister promises a future paradise in view of the next elections and accuses him of not feeling the need to protest against all that takes place in Kosovo at the moment.

Democratic Social Movement president Dimitris Tsovolas stated that Mr. Simitis provokes the people when he speaks about social justice, while on the Yugoslav issue he accused the prime minister and the government of being the yes-men of the United States and NATO.

[09] THESSALONIKI IS AT THE CENTER OF THE POLITICAL AND ECONOMIC DEVELOPMENTS

Web Posted: 15:51 GMT+2

According to information, the prime minister is expected to call on the political parties to deal with the issue of the election of the new president of the republic in a responsible way in order to safeguard the political climate needed by the country and by keeping inflation under control to be able to join the EMU. He is also expected to give assurances that the government in the following years will be able to allocate more money for the improvement of the position of the pensioners and farmers as the economy will have a positive course.

Mr. Simitis in the opening of the Trade Fair yesterday referred to the Greek-Turkish relations and to the promotion of Thessaloniki in order to become an economic center of south-eastern Europe which is a goal, a commitment and a basic priority of the government for the next four years.

The prime minister said that the creation of good neighborly conditions will be mutually beneficial for Greece and Turkey under the pre-condition that Turkey will respect international law and the treaties that determine the status quo in the region. Outlining the government policy on the Greek- Turkish relations, he said that national interest is being safeguarded while the policy followed aims at the steady improvement of relations.

On the relations with FYROM, Mr. Simitis said that the foreign policy of stability and peace followed by the government gives results, adding that keeping in mind the national interests the efforts continue for a solution to the problem of FYROM's name, while he reminded that recently he had fruitful contacts with his FYROM counterpart in the north-western Greek city of Florina.

He said that Greece has proved in action that it is a major political and economic factor in the region by undertaking political and humanitarian initiatives, such as the program FOCUS, while it actively contributes to the peacekeeping effort in Kosovo by sending a infantry brigade. The prime minister also stated that the international recognition of Greece's stance was displayed with the decision to base the European Organization for the Reconstruction of the Balkans in Thessaloniki.

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