Prime Minister Andreas Papandreou yesterday called on protesting farmers to end two weeks of protests, saying their actions were crippling the economy. "I appeal to you to put an end to the revolt," Mr. Papandreou said in a televised address. "The mobilisations have split the country in two and created great problems."
Soon after his televised speech, National Economy Minister Yiannos Papantoniou announced increases in farmers' pensions. But farmers rejected the increases, branding them insufficient and pledged to decide on further action after events marking the anniversary of the 1909 farmers' uprising at Kileler on Sunday.
Meanwhile, all main north-south road and rail links continued to be blocked by the farmers who want a new tax law rescinded, cheaper fuel for their tractors, higher price supports and a number of other demands.
The controversial new tax law sets out "objective criteria" to determine what the farmers must pay regardless of their declared income. The law aims to clamp down on rampant tax evasion and the government has said it can not back down on its efforts to impose tax justice.
The blockades have caused unprecedented traffic chaos, hampering lorries from distributing vital supplies to cities in the north. "We appeal, especially to the farmers, to put an end to the revolt," Mr. Papandreou said. "The cost to the economy will be huge if it continues."
Mr. Papantoniou said farmer's pensions would be increased by 3,500 drachmas -- rising to 25,000 drachmas from 21,500 drachmas -- at a fiscal cost of 16 billion drachmas for 1995 and 60 billion for 1996. Similar increases were announced for low-paid pensioners in other sectors, as well as resistance fighters, whose pensions -- abolished during the previous ND government -- will be reinstated retroactively at a total cost of 20 billion drachmas.
Mr. Papantoniou said the "sacrifice" measures were beyond the endurance of the economy and appealed to social classes to display "self-restraint." "All social classes should display responsibility and self restraint as we live through a period where efforts are being made for the state to escape the stifling stranglehold of an over-inflated deficit," Mr. Papantoniou said.
Noting that his ruling PASOK party had "substantially raised farmers' standard of living," Mr. Papandreou said: "We stood by you and we know you will stand by us." Mr. Papandreou lashed out at opposition parties saying they were fuelling the situation for political purposes. "The aims of those leading the revolt are for purely political reasons," he said.
His appeal followed a meeting of government ministers at Mr. Papandreou's home in the outer Athens suburb of Ekali. The meeting was attended by National Economy Minister Yiannos Papantoniou, Finance Minister Alexandros Papadopoulos and Agriculture Minister George Moraitis. Earlier, nine ministers and two under-secretaries met at the National Economy ministry to examine the situation.
Mr. Papantoniou also met with President of the Republic Kostis Stephanopoulos, whom he briefed on the mobilisation and the government's efforts to resolve the issues. The government has ruled out using force to quell the protests but conceded that it was taking measures to prevent the protests from spreading to other parts of the country.
Government spokesman Evangelos Venizelos reiterated that riot police would not be used to open the roads. "The government has the ability to impose order, but prefers to display caution and self-control," he said.
Flights to and from the northern port city of Thessaloniki continued on schedule but passengers were having difficulty reaching and leaving Macedonia international airport because of road blocks by farmers. Passengers were having to use farm roads while others walked approximately 4 kilometres to and from the airport.
More than 10 factories in Thessaly, central Greece, have stopped operating as a result of acute shortages in raw materials and inability to distribute their manufactured goods. Thousands of factory workers have been placed on temporary leave until the crisis subsides.
In Piraeus, the Merchant Marine Ministry authorised two freighter vessels to conduct urgent routes to assist in the transportation of needed supplies to the port cities of Thessaloniki and Volos. "The move aims to assist in the immediate and urgent needs of transportation which has been affected by recent mobilisations," Merchant Marine Minister George Katsifaras said.
Industrialists in Thessaly have begun chartering vessels to transport their goods but complain of high chartering fees. "The cost is five times more expensive than hiring lorries," said Apostolos Papadoulis, director of the Federation of Industries in Central Greece and Thessaly. He says industrialists fear that the harm to their businesses will continue even after the end of the crisis. "Their products have disappeared from the shelves of the market places. They have been replaced by products manufactured in other regions of the country. In effect, they've lost a share of the market they controlled," Mr. Papadoulis said.
The main opposition New Democracy party countered the prime minister's criticism later, saying his televised appearance and chairing of the crisis talks with cabinet ministers served only to project the image of a leader involved in politics rather than solving problems. "Since Mr. Papandreou does not realise (the necessity) of stepping aside, the initiative (to overthrow him) belongs to the members of PASOK," leader Miltiades Evert said.
Political Spring leader Antonis Samaras accused the government and conservative ND party of engaging in a "contest of irresponsibility by exchanging insults." He said his party had tabled a six-point proposal as a framework for dialogue between the government and protesting farmers."
Commenting on Mr. Papandreou's statements and the announcement of the measures by Mr. Papantoniou, Communist Party of Greece Secretary-General Aleka Papariga described them as "the greatest provocation ever waged upon the people."
The Coalition of the Left and Progress criticised the government for giving "provocatively low" increases in pension fees. The party accused the government of intensifying the current crisis with its failed and flawed policies.
The farmers mobilisation committee in the Larissa region, meeting after the prime minister's statement, expressed dissatisfaction over the measures announced. It said that the pension increases granted were not enough to cover "even the cost of coffee and cigarettes".
The farmers claimed that they were open to dialogue, and that if provisions had been made for a reduction in the price of petrol and the return of VAT, they would have freed the blockaded highways. Pensioners also expressed displeasure at the measures announced by Mr. Papantoniou.
After events marking the anniversary of the 1909 farmers' uprising at Kileler on Sunday, new meetings will be called to decide on the further course of action.
Foreign Minister Karolos Papoulias held "extremely successful and productive" talks with Bulgaria's entire political spectrum during his two-day visit to Sofia. "In a short period of time there will be a tripartite meeting between Greece, Bulgaria and Russia for the signing of necessary documents on the implementation of the Burgas-Alexandroupolis oil pipeline plan," Mr. Papoulias said.
Mr. Papoulias outlined efforts by the Greek government to promote this plan, starting with his meeting with Russian President Boris Yeltsin in Moscow in early June 1994 when complete acceptance was achieved. He said he had discussed the issue with his Russian counterpart Andrei Kozyrev and with the Russian government's Foreign Economic Relations Minister Oleg Davidov. "If you add the Bulgarian government's efforts, I think the preliminary cycle has been completed," Mr. Papoulias said.
Replying to questioners on the same issue, Bulgarian Prime Minister Jan Videnov said "the oil pipeline plan is greatly related to Russia's position. It depends on economic criteria. I think the main programme has big advantages and will be examined seriously."
Referring to the bilateral issues of the River Nestos waters and the new passages, Mr. Papoulias ascertained a "coinciding political will" in all his meetings, adding that the two foreign ministries would soon reach a mutually acceptable solution.
Mr. Videnov said he thought the "issue of the River Nestos waters will find a solution in the immediate future, maybe in the next few months or in a year's time." The volume of bilateral economic exchange in 1994 amounted to 500 million dollars and Mr. Papoulias said continuous contact would be maintained to facilitate business activity further. "Greece will facilitate Bulgarian businessmen in ridding themselves of bureaucratic inconveniences on the issue of entrance visas," Mr. Papoulias said.
Athens also tabled a plan on the "seasonal employment of Bulgarian workers in Greece" and a plan on the "re-entry of illegal immigrants" and the official exchange of documents ratifying investment promotion agreements was made. Many of the economic issues will be examined at the upcoming meeting of the Joint Inter-Governmental Economic Co-operation Committee in Athens.
Common initiatives to resolve the Yugoslav crisis and the lifting of the embargo against Belgrade were among the main issues discussed by the two delegations. Mr. Papoulias said that on the sidelines of the forthcoming meeting of Black Sea Co-operation foreign ministers in Athens, efforts would be made for a joint confrontation of the problem by countries harmed by the embargo.
Bulgarian Foreign Minister Gueorgui Pirinski called for Greece's support for Sofia's effort to become a full European Union member. Mr. Papoulias said Greece offered its support as an EU and NATO member when Bulgarian demands came up for consideration and supported Sofia's efforts to approach European structures and European fora. He also referred to bilateral co-operation as part of "Partnership for peace" and to upcoming military exercises.
Mr. Papoulias invited Mr. Pirinski to visit Athens and delivered an invitation by Greek Prime Minister Andreas Papandreou to Mr. Videnov to pay an official visit to Greece. Mr. Videnov will respond to the invitation in the summer. Mr. Papoulias also invited Bulgarian President Zhelyu Zhelev to visit Athens on behalf of President Kostis Stephanopoulos. Mr. Zhelev accepted the invitation and in turn invited Mr. Stephanopoulos to visit Sofia.
Mr. Papoulias said he ascertained inter-party consensus from Bulgaria's entire political spectrum and the importance attributed to the development of relations between Greece and Bulgaria.
The Chief of the National Defence General Staff, Admiral Christos Lymberis, will pay an official visit to Germany between April 2-5 at the invitation of his German counterpart General Klaus Nauman. The two military chiefs will discuss defence issues of mutual interest. During his stay, Mr. Lymberis will visit a number of military installations and give a lecture at Germany's armed forces war academy. General Nauman will take over as president of Nato's Military Committee on January 1, 1996.
Ruling socialist PASOK party Central Committee Secretary-General Akis Tsohatzopoulos met with British Labour Party member Tony Benn, former leader of the party's left wing, in London on Thursday night immediately after his arrival.
Mr. Tsohatzopoulos stressed the importance of strengthening relations between PASOK and the Labour Party which he had already discussed with its new leader Tony Blair. He said that he would have another meeting with Mr. Blair in Brussels on May 2 on the sidelines of the European Socialist Party's presidency meeting. He said that during his stay in London he would not meet Mr. Blair since he was currently in Scotland.
Commenting on contacts a joint parliamentary delegation under his leadership had in Germany, Mr. Tsohatzopoulos said: "It was a three-day trip with substantive contacts with Germany's political leadership and distinguished journalists of major German newspapers with whom we had the opportunity of discussing issues shaping Greece's image abroad."
Mr. Tsohatzopoulos was due yesterday to visit the Greek Centre in London, attend a dinner given by the dean of Surrey University, meet European Parliament Socialist Group leader Pauline Green and deliver a speech at the National Hotel on "The new Europe an political prospect: the Cyprus issue, the Balkans and the Mediterranean."
A Greek parliamentary delegation yesterday condemned the military invasion of 35,000 Turkish soldiers in northern Iraq and efforts to exterminate the Kurdish people, during the 93rd Inter-parliamentary Conference currently being held here.
Panhellenic Socialist Movement (PASOK) party deputy and head of the Greek delegation Alexander Baltas requested the recognition of rights for the Kurdish people and the intervention of the international community. Main opposition New Democracy party deputy Yiannis Stathopoulos said the invasion was an attempt to exterminate a nation which the international community was watching apathetically.
The Inter-parliamentary Conference is held every six months and is attended by parliamentary representatives of 135 countries. The Greek delegation is also made of representatives of the Political Spring and Communist Party of Greece parties.
Outgoing Greek Ambassador to Ankara Alexander Philon met yesterday with Turkish Prime Minister Tansu Ciller. According to sources, Ms Ciller expressed the wish for the bettering of relations between Greece and Turkey while Mr. Philon had the opportunity to reiterate to the prime minister the negative outcome of statements made which blame Greece for any problems faced by her country.
The gesture of a farewell meeting is considered unusual, as none of the previous 15 Greek ambassadors had a farewell meeting, and contradicts recent messages by the Turkish government. Also attending the meeting was former Turkish foreign minister Murat Karayalcin, who is scheduled to take on diplomatic missions in the future.
Ecumenical Patriarch Vartholomeos departs tomorrow for Tokyo, Japan to take part in the first part of the International World Church Ecological Conference. The second session of the conference will be held at the Windsor Castle in London, April 29 through May 4, according to a Patriarchate announcement. The Patriarch is also scheduled to visit Korea, April 8-13, which falls within the jurisdiction of the Patriarchate, the announcement added.
Inflows of shipping exchange rose by 17.7 per cent in December last year to total 205 million dollars, compared with 174.1 million dollars in the same month of 1993, according to figures released yesterday by the Merchant Marine Ministry. In 1994, inflows of shipping exchange totalled 1,963.3 million dollars, compared with 1,920 million dollars the previous year.
Greece's economic co-operation with its Balkan neighbours opens the way to their accession to the European Union, National Economy Minister Yiannos Papantoniou told a one-day conference on the development of Greek-Romanian trade relations yesterday, organised at the Athens Chamber of Commerce and Industry by the 'Balkan News' newspaper.
Romanian Finance Minister Florin Georgescu stressed that his country had made important strides towards development, and referred in particular to the issue of privatisations, the legal framework for foreign investment, major public works projects, telecommunications and tourism.
National Economy Under-Secretary Ioannis Anthopoulos said that the current conjuncture provides an historical opportunity for the consolidation of permanent liaison between business-people in both countries, and that Romania's rapid economic development will also help Greece in many ways.
Private savings decreased in the first two months of the year, the Bank of Greece revealed yesterday. According to the bank's latest information bulletin, private deposits decreased by 424 billion drachmas.
More specifically, savings bank deposits decreased by 296 billion drachmas, sight deposits by 98 billion drachmas and time deposits by 30 billion drachmas. Deposits had again decreased over the same period last year but at a slower pace, by 138 billion drachmas. Repos also continued their downward trend over the same period.
Investments in repos fell to 134 billion drachmas in February this year, compared to 318 billion drachmas in December 1994 and 1.9 trillion drachmas in December 1993. In the sector of private investments in state titles over the January-February period this year, investments in the primary market amounted to 395 billion drachmas for one-year titles, suggesting a considerable increase compared to the corresponding period last year (172 billion drachmas).
If investments in state titles of a duration of over a year are added, the total amount of private capital invested in state securities, in the primary market, amounted to 476 billion drachmas compared to 343 billion drachmas in the first two months in 1994.
The money supply index, M3, which calculates money in circulation, repos, private deposits and bank bonds, decreased by 872 billion drachmas in the first two months in 1995, while the rate of change of M3 compared to December 1993 slowed down by about 3 .5 per cent. This was due to the substitution of private deposits and repos by state titles which offered higher interest rates. This development is in harmony with the anti-inflationary policy applied by the Bank of Greece.
Moreover, the economy's total liquidity (M4) also slowed down but at a slower rate than M3. The 12-month M4 rate was limited to 12 per cent in February this year compared to 13.5 per cent in December last year (the target for the annual rate of M4 increase is 11-13 per cent).
The European Commission yesterday approved the granting of 180 million Ecu from the European Regional Fund for the completion of a project to build a natural gas pipeline that will import natural gas from Russia to Greece.
The programme is part of the INTERREG initiative, which will cover 40 per cent of the total cost. The sum is complementary to funds already provided through the Community Support Framework, and work is expected to be completed by 1997.
The relevant Commission statement yesterday said the project concerns the completion of the high pressure pipeline for the transportation of Russian natural gas from the Greek-Bulgarian border to Athens, as well as the work for the reception, processing, and transportation of liquefied natural gas from Algeria.
The cost of ancillary works (medium and low pressure networks, the necessary compulsory purchases and relevant studies) amounts to 825.4 million Ecu, 43 per cent of which will be covered through the Regional Development Fund. According to the Commission, the project will lessen Greece's dependence on oil and significantly improve the quality of the environment.