From: zarros@turing.scs.carleton.ca (Theodoros Sp. Zarros)
Subject: News (in ENGLISH)- Sat, 4 Dec 1993 (Greek Press Office BBS, Ottawa).

Athens News Agency Bulletin, Dec. 4, 1993

	Athens, 4/12/1993 (ANA): National Economy Minister George
Yennimatas yesterday announced the government's proposed
measures concerning development and tax policy aimed at reviving
the country's ailing economy. Announcing the proposals to the
representatives of 21 organisations and the social partners, Mr.
Yennimatas requested them to submit their replies by Monday. Mr.
Yennimatas announced series of measures which, he said, were
aimed at curbing widespread tax evasion, curtailing socially
unjust privileges for certain categories of taxpayers and
ensuring justice in sharing the tax burden.

	The measures include taxing incomes of small companies and
liberal professions such as doctors on the basis of "objective
criteria". Such criteria would be the value of the premises and
equipment used by members of such professions. A small presumed
income would be added to this value, calculated on the basis of
corresponding incomes earned by salaried persons employed in the
same profession. The resulting figure would serve as the tax
basis subject to adjustment according to profession. The final
arrived at will be considered the taxable income, unless the
income declared by the taxpayer is higher.

	A "trading tax" will also be levied on tradespersons operating
without business premises, such as street vendors. Tradespersons
in this category will pay tax in the form of an annual lump sum.
The government also plans to introduce an instalment tax on the
income of construction workers, to be retained by the contractor
or owner of the building.

	Mr. Yennimatas is also proposing the application of objective
criteria for estimating farmers' incomes, from which an amount
of tax will also be retained. Criteria for farmers include type
and size of arable land and the value of equipment used.
According to the proposals, objective criteria will also be
applied for calculating VAT owed by certain categories of small
companies. The imposition of VAT, at a rate of 18 per cent, will
also be extended to construction costs, with the simultaneous
abolition of property transfer tax. Mr. Yennimatas is proposing
continuation of the present tax scale by inclusion of a maximum
rate of 45 per cent for annual incomes exceeding 15 million
drachmas.

	Other measures include the registering of shares of joint stock
companies (societes anonymes) in the health and education
sectors. This would apply to the shares of private schools,
private clinics etc. A 10 per cent tax on the dividends of
unlisted shares of joint stock companies is also among the
measures. As part of the government's concerted drive to stamp
out tax evasion, Mr. Yennimatas is proposing gaming rooms be
taxed on the basis of the number of tables and entrance tickets
be introduced for nightclubs.

	Other measures proposed by Mr. Yennimatas are: A supplementary
tax on luxury homes of over 300 square metres. The use of rent
as a criterion for calculating estimated living expenses. The
re-introduction of the means test to establish source of wealth.
The test will not apply to the purchase of first homes or the
acquisition of listed shares. It will also apply to tax
officials. The reduction of indirect state subsidies. The
re-introduction of a discount for taxpayers who pay their tax
dues in a single lump sum. Increase of tax allowance granted to
salaried workers and pensioners.

	Turning to the government's development policy, Mr. Yennimatas
said that emphasis would be placed on sectors of production
which boost Greece's competitiveness internationally, create
stable and well-paid jobs, increase domestic added value and
limit the economy's foreign dependence. In addition, he said,
the government plans to strengthen investment activities which
have repercussions on employment. At the same time, he went on,
it would considerably strengthen the links in the chain of
know-how in competitive production. Emphasis would also be given
to the transfer of technology, particularly in the sectors of
agriculture, manufacture and services.

	Other targets include the creation of a suitable institutional
framework for the credit system to foster the development of new
financial services to better meet the needs of companies in the
new environment of liberalised markets. The government also
plans to reduce the high cost of money by implementing a policy
aimed at restricting public spending. Mr. Yennimatas said the
export activities would be backed, particularly in the case of
companies exporting or investing in the Balkans and East Europe.
He said that the National Economy Ministry would undertake two
initiatives: drawing up a "Development Charter" and formulating
"National Development Plans". The former would contain the
necessary measures to be taken at a institutional,
organisational and financing level for promoting development,
while the development plans would cover major areas of domestic
production.

	Mr. Yennimatas said amendments to the law on development
incentives would include a stricter selection process for
investments qualifying for incentives. The government, he said,
would support initiatives for collective business activity by
companies aimed at facilitating access to new markets, securing
joint supplies of materials and meeting quality control needs.
Special incentives would be introduces, he went on, for regions
in need of urgent restructuring, citing areas which have been
badly hit by de-industrialisation in recent years. Assistance
for tourist infrastructure works of a high standard would
continue, Mr. Yennimatas, said, but the suspension of assistance
for investments aimed at increasing accommodation capacity would
be extended.

	Mr. Yennimatas said that the process of privatisation was
compatible with the government's policy, to the extent that it
did not lead to private monopolies, the abandonment of social
services, the undermining or weakening of strategic activities,
or threats to the country's national security. He said that the
state telephone company (OTE), power company (DEH) and possibly
other organisations would be called on to increase their capital
through the stock exchange, so that 15 per cent of their share
capital may pass into private ownership.


	Brussels, 4/12/1993 (ANA - G. Daratos): Foreign Minister
Karolos Papoulias yesterday called on Turkey to revise its
negative position on the question of a Community observer in the
UN-sponsored Cyprus peace talks, at talks with his Turkish
counterpart Hikmet Cetin on the sidelines of the NATO Council of
Foreign Ministers. Mr. Papoulias said that as long as an
occupation army remained in Cyprus Greek-Turkish relations would
certainly continue to 'drag their feet'. Mr. Papoulias said
Athens should pressure and influence Turkish Cypriot leadership
to also contribute to a solution to the Cyprus issue.

	Mr. Cetin was noncommittal on the observer issue, adding that
he would see who would win the "elections" on December 12 in
Turkish-occupied northern Cyprus and in what way he would
contribute to prompting it to take a substantive part in the New
York negotiations. On the question of the Kurdish separatist
rebellion in Turkey and the action of the Kurdish Workers Party
(PKK), Mr. Papoulias said a solution cannot be found by using
police force against Kurds. "It is necessary to uproot
oppression of the Kurdish populations in south-eastern Turkey
exercised by Ankara", he said. Mr. Papoulias termed his
45-minute talks with Mr. Cetin an "exploratory acquaintance
meeting" focusing on all matters concerning relations between
Greece and Turkey. Talks centred primarily on the Balkans and
the situation in former Yugoslavia and Bosnia. Referring to the
Geneva peace talks, Mr. Papoulias said: "Something is moving and
the fact the warring sides are sitting round a table discussing
specific matters, is very important in my opinion". The two
ministers will continue their exchange of views on the situation
and the future of the Balkans on December 9 at the meeting of
Black Sea countries in Sofia. Mr. Cetin and Mr. Papoulias agreed
that their governments should refrain from making provocative
statements against each other, to avoid creating tension and
provoking public opinion in their countries. Mr. Cetin referred
to the Kurdish issue, terming it a "major problem" creating
concern in Ankara and, in particular, to "terrorism emanating
from the Kurdish Workers' Party".


	--- Mr. Papoulias said the meeting of NATO foreign ministers
was "positive and constructive "as also the joint meeting with
foreign ministers from central and east European countries on
the sidelines of the North Atlantic Co-operation Council. He
told reporters the proposal inspired by the U.S. on
"co-operation for peace" is very important and a "big step
forward" paving the way for co-operation with central and east
European countries and the CSCE in general.


	Athens, 4/12/1993 (ANA): Alternate Foreign Minister Theodoros
Pangalos had a meeting yesterday with the German Ambassador to
Athens. The envoy later told the press subjects discussed
related to co-operation in the context of European Union. "I
shall not say anything more on our conversation" he said. Asked
if the question of diplomatic relations with Skopje had also
been raised, he referred the questioner to a recent German
Foreign Ministry statement that the matter of upgrading
relations with the Former Yugoslav Republic of Macedonia (FYROM)
was under consideration by the eleven European union
member-countries, and no decision had yet been taken on if and
when such relations should be raised to embassy level.


	--- Alternate Foreign Minister Theodoros Pangalos yesterday
refuted reports his German counterpart Klaus Kinkel had informed
him of a move within the European Community to forge diplomatic
ties with the Former Yugoslav Republic of Macedonia. "Mr. Kinkel
told me that Germany would establish diplomatic ties with Skopje
and set-up a diplomatic representation there. He never told me
that he was in contact with other states on a joint move", Mr.
Pangalos said. "I have the impression that he (Kinkel) should
have notified me", he told a news conference. Mr. Pangalos said
he was informed of the issue in a German newspaper report about
a move by its 11 European Community partners to grant diplomatic
recognition to the former Yugoslav republic before Christmas.

	Germany's ambassador to Athens told reporters after a meeting
with Mr. Pangalos that Bonn was reviewing the issue of
recognition with EC member states, but no decision had been
taken. Greece has been blocking international recognition of the
former Yugoslav republic, saying its use of the name "Macedonia"
implies territorial ambitions on Greece's northern province of
the same name.


	--- The government yesterday did not rule out a meeting between
Prime Minister Andreas Papandreou and French President Francois
Mitterrand and German Chancellor Helmut Kohl on the issue of the
recognition of the Former Yugoslav Republic of Macedonia
(FYROM). Asked about the possibility of Mr. Papandreou's
requesting such a meeting, government spokesman Evangelos
Venizelos replied: "Nothing may be ruled out, should the need
arise". Asked if Germany exerted pressure on Greece to prevent
Alternate Foreign Minister Theodoros Pangalos from handling the
European Union, the spokesman said that the premier alone
appointed ministers. "No pressure of any kind is being exerted
on Greece", he added.


	Athens, 4/12/1993 (ANA): The balance of current accounts showed
a 669.5 million dollar surplus in the period January-September
this year compared with a deficit of 1601.1 million dollars in
the same nine-month period of 1992, according to figures
released by the Bank of Greece yesterday. The surplus for the
month of September was 101 million dollars compared to a deficit
of 705.9 million dollars for the corresponding month in 1992.
The balance of trade deficit fell to 8,884.7 million dollars,
from 10,171.1 million dollars in 1992. Imports totalled 12,700.4
million dollars down form 14,734.5 million dollars in last year.
Exports were also down, from 4,563.4 million dollars in 1992, to
3,815.7 million dollars.

	Other figures showed travel exchange totalling 2,592.5 million
dollars, a slight rise form 2,545.4 million dollars in 1992.
Remittances from emigrants and Greek workers overseas reached
1,713.9 million dollars, compared with 1,733.9 million dollars
last year. Net inflows from the EC totalled rose to 4,087
million dollars from with 2,853 million dollars. Business
capital inflow amounted to 1,575,6 million dollars down from
with 1,631.1 million dollars last year. Foreign exchange from
Greeks overseas for property purchases totalled 715.7 million
dollars from 819.4 million dollars. Foreign exchange reserves
rose to 7,801 million dollars from 5,132.6 million in 1992.


	Athens, 4/12/1993 (ANA): Russia has shown interest in
establishing a consulate in the northern Greek city of
Thessaloniki, government sources said yesterday. Russian envoy
to Athens Valery Nikolayenko made his country's intention known
to the Greek government at a meeting with Macedonia-Thrace
Minister Constantine Triarides, the sources added. Mr.
Nikolayenko said the consulate would highly contribute toward a
co-operation programme between southern Russia and Macedonia.
"Russia wishes to develop relations with Thessaloniki, the
future economic and banking centre of the Balkans", he said.