Macedonian Press Agency: News in English, 02-04-30

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

CONTENTS

[01] CHANGES IN POLICY

[02] COMPETITIVENESS IS THE KEY FOR GREEK ECONOMY

[03] COUNTERFEIT EURO IN THESSALONIKI

[04] 15% DROP IN TOURIST TRAFFIC

[05] ASE DROPS 0.43%

[06] FINAL RESULTS OF 2001 CENSUS

[07] EVENTS FOR MAYDAY

[08] 3.7 R EARTHQUAKE IN ATHENS

[09] NO STEPS FROM TURKISHCYPRIOTS

[01] CHANGES IN POLICY

A broad range of initiatives to be taken by the Prime Minister, aiming at reversing the negative atmosphere, will come into full effect today, after the decision of the Maximos Mansion.

According to the Imerisia newspaper, which lists close associates of the Prime Minister as sources, Mr. Simitis is determined to dynamically intervene to stop the prevailing cycle of introversion, which even includes scenarios concerning a change in leadership, intertwined with a possible defeat in October. According to verified information, during his in private meetings with top government and party staff members, Mr. Simitis will ask them:

- To clarify their position on the scenarios of succession in the party.

- To contribute to the improvement and control of the atmosphere in the Parliamentary Group, which looks like quicksand lately.

- To stop the attacks against government staff members in the form of leaks, such as those taking place against N. Christodoulakis and G. Papandreou.

This situation, where every governmental action is followed by interior turbulence, cannot continue, stressed a close associate of the Prime Minister characteristically.

This framework has a specific time plan, since a top ranking government staff member stated that anything to happen, must happen before the people leave for the summer, while it is considered certain that Mr. Simitis wants a better atmosphere when he goes to PASOK's Parliamentary Group and Central Committee meetings, scheduled to take place in the last 10 days of May. Apart from the initiatives concerning the improvement of PASOK's interior image, there is a series of initiatives so that Mr. Simitis can improve his personal image. Such as his meeting yesterday with women working in the data processing information field, as well as his political speech in Rhodes in Easter Monday.

[02] COMPETITIVENESS IS THE KEY FOR GREEK ECONOMY

Director of the Bank of Greece and soon to be Vice-President of the European Central Bank, Lucas Papadimos, presented his latest annual report on the course of Greek economy, stressing that the road to full employment and real convergence of the Greek economy to that of the rest of the euro-zone, passes through two major points. Those are the improvement of competitiveness and the completion of the fiscal reform.

The improvement of competitiveness should be one of the main priorities of the government, stressed the departing Director of the Bank of Greece, who foresees a rise in labor cost per unit produced between 3% and 3.5%, in contrast to 2.9% in 2001 (while the corresponding rate in the rest of the euro-zone will be 1.8% in contrast to 2.4% of 2001).

At the same time average annual inflation for Greece will be 3.5%, a level non-compatible with price stability. "The rise and deviation from the euro-zone's inflation will limit international competitiveness of the economy", pointed out Mr. Papadimos, and he added: "If such deviations take on a more permanent character, their accumulative consequence on competitiveness will be serious with negative consequences on real income and employment".

Furthermore, the Bank of Greece estimates that Greek economy will have a development rate of 3.5%, slower than the 3.8% expected by the government. According to Mr. Papadimas, factors such as the 3rd Communal Support Framework and the Olympics will support the economy in the short run, but their favorable effect will "evaporate" within five years.

Consequently, in order to secure a more permanent situation as far as development rates are concerned, it is crucial that necessary structural changes are made, such as the social security and tax reforms and the control of primary costs, the modernization of public administration and the improvement of the labor market.

[03] COUNTERFEIT EURO IN THESSALONIKI

The first counterfeit euro bank notes, since their circulation in January, were found in Thessaloniki, a fact seriously troubling local authorities.

During the past few days, Thessaloniki authorities have found and seized three counterfeit 20 euro bank notes in as many businesses throughout the city, without however tracing the counterfeiters who put them into circulation.

Police officers confirm that it is the first batch of counterfeit euro bank notes to be found in Thessaloniki, without going into any details, until investigations are complete.

According to information, the officers handling the case appreciate that the counterfeit currency was most probably printed in illegal printers functioning in Italy and neighboring Balkan countries during the past few years.

As was revealed, the three bank notes were not photocopied, but printed with latest technology machinery, thus making them very difficult to be discerned as counterfeit. Also, police officers state that it is quite possible for more counterfeit 20 euro notes to turn up in the market, as they were worried by the fact that they were located in three different shops.

[04] 15% DROP IN TOURIST TRAFFIC

The tourist market is in an especially rough spot, with this year's crisis in tourist traffic even in the major tourism markets abroad. Even if the number of tourists reaches the levels of 2001, which will be very difficult, the "Imerisia" newspaper mentions that the financial return will be 15% less than last year, since it will be the result of inexpensive packets and special offers.

The image being formed in tourist traffic due to interior and exterior reasons, seriously downgrades the advantage Greece had concerning the 2004 Olympics.

The business plan on tourism which was to plan and materialize actions to help Greek tourism escape the crisis and develop at an institutional and investment level is absent, giving its place to fragmentary actions covering but not dealing with today's tourism policy dead end.

[05] ASE DROPS 0.43%

Losses were recorded in the Athens Stock Exchange today, with the general index dropping to 0.43%, at 2,218.38 units, while the volume of transactions was at 87.6 million euro.

Of the stocks trading today, 240 had losses, 74 recorded gains, and 59 remained unchanged.

[06] FINAL RESULTS OF 2001 CENSUS

The real population of Greece increased by 6.9%, according to the final results of the 2001 census, which was published by the National Statistic Service.

Specifically, the real population of Greece (people who were recorded during the census) comes to 10,964,595, in contrast to 10,259,900 and 10,134,534, during the 1991 census (with an increase then of 6.9% and 0.7%).

[07] EVENTS FOR MAYDAY

Strikes and protest rallies will take place throughout Greece in all major cities, in celebration of the 1st of May

[08] 3.7 R EARTHQUAKE IN ATHENS

A weak seismic vibration, recorded at 3.7 points on the Richter scale, took place at 12.36 in Attica, its epicenter in the underwater area of Rafina, 20km east of Athens.

[09] NO STEPS FROM TURKISHCYPRIOTS

Prime Minister Kostas Simitis had telephone communications with EU Representative on Joint Foreign Policy and Defense Issues, Xavier Solana, and the President of the Cypriot Republic, Glafkos Cleridis.

Those were his statements to the Press after his meeting with the Greek President of the Republic, Kostis Stefanopoulos, whom he informed on foreign policy issues of the governments and developments in the Middle East, the Balkans and the Cyprus issue.

Leaving the Presidential Mansion, Mr. Simitis made the following statements to the press:

With President of the Republic, Mr. Stefanopoulos, at our regular meeting, we discussed foreign policy issues and interior developments.

As far as foreign policy issues are concerned, the center of attention is at present the relationship of the EU and NATO (also known as the Euroarmy issue) and negotiations to resolve the Cyprus issue.

I had a communication concerning the first issue yesterday, with the High Representative of the European Union on Issues of Joint Foreign Policy and Defense, Mr. Solana, in order to advance the examination of the issue from an EU point of view, as I had pointed out recently, when I met with the Secretary General of NATO, Mr. Robertson, in Athens, whom I told what I told Mr. Solana. There must be other views than the ones supported so far.

I also had a discussion with Mr. Cleridis. Negotiations leading to the 2nd phase are over and will recommence on May 7. The Turkish-Cypriot side has submitted a memo with its positions. Mr. Cleridis pointed out that he could see no discernable progress in the issue.

I believe that the Turkish Cypriot side has an obligation to make proposals that will lead to an essential discussion on the issue. The discussion taking place in a UN framework is not just taking place so that views can be exchanged, and serve as an alibi. It is a discussion that must lead to a solution.

The solution, of course, depends on how much the Turkish-Cypriot side will conform to the decisions of the UN. A change in their tactics is necessary, movements on their behalf in the right direction, so that a commonly acceptable solution is found. I hope that this can take place in the next round of negotiations.

Mr. Cleridis and I agreed that we will have a meeting in mid-May or early June, depending on the developments.

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