Investment interest so far this year has exceeded all expectations, Alternate National Economy Minister George Romaios said yesterday.
The ministry has approved some 639 investment projects worth 234 billion drachmas, he said, a development which had "exceeded the Ministry's expectations". The numbers stand in stark contrast to the 424 investment projects worth 86.8 billion drachmas approved for the whole of last year.
Mr. Romaios said investments so far this year would receive 94.6 billion drachmas in state subsidies and would create 7,356 new jobs and said the increased demand had led the ministry to increase the initial 60 billion drachmas earmarked for investment subsidies for the first half of the year by another 34.6 billion.
Broken down by sector, investments valued at four billion drachmas have been approved in the primary sector, which will receive 1.5 billion drachmas in subsidies. In the secondary sector, investments of 187.4 billion drachmas have been approved, which will receive 80.8 billion drachmas in subsidies. Investments approved in the hotel sector were valued at 30.9 billion drachmas, with subsidies totalling 8.3 billion drachmas, while in the services sector, investments valued at 11.6 billion drachmas will receive subsidies of four billion drachmas.
Foreign Minister Karolos Papoulias will pay a one-day visit to Slovakia today, the first such visit by a Greek minister since the break up of Czechoslovakia on January 1, 1993. Foreign Ministry spokesman Constantine Bikas said the visit to Bratislava was within the framework of Greece's contacts with the countries of central and eastern Europe.
Trade between the two countries is at a minimal level, with Greek exports amounting to $16 million, and imports from Slovakia to $20 million in 1993. Among the top priorities of the Slovak coalition government is the country's membership of the European Union and NATO, and Mr. Papoulias' interlocutors, President Kovac, Prime Minister Metsiar, and his counterpart Senk, are expected to ask for Greek support.
Slovakia entered into an association agreement with the EU on February 1, 1994, and it has also acceded to Nato's Partnership for Peace programme. Mr. Papoulias is due to return to Athens this evening.
European Affairs Minister George Mangakis left yesterday for Messina, Italy to attend a series of events marking the 40th anniversary of the European Union. A group of EU officials will also meet during the events to draft the agenda for next year's review of how the Union works.
It was in Messina, 40 years ago, that foreign ministers from Germany, France, Belgium, the Netherlands, Italy and Luxembourg agreed to negotiate the creation of a common market. The result, in March 1957, was the Treaty of Rome, which turned the six -- then part of the European Coal and Steel Community -- into the European Economic Community.
Greece yesterday expressed the hope that there would soon be some progress in resolving its differences with the Former Yugoslav Republic of Macedonia. "Greece hopes that there will soon be some result and some progress in the Skopje issue," Foreign Ministry spokesman Constantine Bikas told a press briefing when asked if there was still optimism towards a settlement of the problem, as recently expressed by Foreign Minister Karolos Papoulias.
Mr. Bikas said the mediation efforts were continuing and denied there was any "secret diplomacy" going on. "There are the discussions going on in New York and the statements of the parties involved and our country maintains the hope that there will be some result soon," Mr. Bikas said. Replying to another question, Mr. Bikas reiterated that "the Greek retortion measures will be lifted when Skopje gives specific examples of good will, but this is nothing new."
Asked to comment on a FYROM spokesman's statement that Skopje would not enter into negotiations if the Greek trade sanctions were not lifted, and therefore on what bases the Greek Foreign Ministry could express optimism, Mr. Bikas replied: "We did not speak of optimism, but of hope." Meanwhile, the government yesterday denied as "totally inaccurate" a US report that it had concluded a "secret trade agreement" with FYROM in order "to get round" Greek sanctions against the neighbouring state.
"There is no secret agreement," government spokesman Evangelos Venizelos said, denying that Greece's permanent representative at the UN, Christos Zaharakis, had any discussions on "what is being referred to as a secret trade agreement."
Mr. Venizelos attributed the report to either "incorrect information" or to the "misinterpretation" by the correspondent of "things which have been stated publicly." It is possible, he added, that the correspondent misinterpreted Gree-ce's position that it would be prepared to lift the trade embargo against Skopje if the latter made some concrete move evidencing good will.
Government spokesman Evangelos Venizelos reiterated yesterday there was no question of a government reshuffle. He was replying to questioners referring to press reports and to the Parliamentary recess.
The Greek Parliament unanimously ratified the Law of the Sea convention, giving Greece the right to extend its territorial waters from six to twelve miles, early Wednesday, but the government said the new convention was simply a restatement of international law currently in force.
Greece's ratification of the convention, government spokesman Evangelos Venizelos said, adds nothing new at the level of international law. On the possibility of Greece officially extending its territorial waters, Mr. Venizelos said that "the determining of the extent of territorial waters is an inalienable right of each country and this right may be exercised whenever the government of a country sees fit."
"The Greek government has had no official response from Turkey concerning the neighbouring country's reaction to parliament's ratification of the new Law of the Sea convention," he said, commenting on Turkish media reports presenting the ratification as a cause for war. Turkey, which is not a signatory to the convention, has repeatedly threatened that any attempt by Greece to extend its territorial waters in the Aegean would be a cause for war. Greece and Turkey have argued for years over boundaries and rights of passage in the Aegean where Greek islands lie close to the Turkish coast.
Commenting on the Turkish media reports, Mr. Venizelos said that "they presage a Turkish stance repeating the well-known phenomenon of manufactured tension and provocations against Greece."
Turkey said Greece's ratification of a treaty al lowing it to extend territorial waters was not a reason for war, although it might be another matter if Athens actually claimed new waters.
In Athens, the opposition Political Spring party yesterday called on the government to immediately lay the groundwork for the implementation of the convention.
Mr. Venizelos later criticised Turkish Foreign Ministry spokesman Nurettin Nurkan for misreading his statements earlier yesterday. Mr. Nurkan expressed "surprise" at Greece's "accusations that Turkey is creating tension with its exercises in the Aegean." Turkey yesterday began scheduled land and sea exercises in the Aegean Sea. The exercises are due to last two weeks.
"It would be good if Mr. Nurettin had read carefully the full text of my statement," Mr. Venizelos said. Mr. Venizelos said he had not referred to Turkey's planned exercises in the Aegean but to press reports "which presage a Turkish stance repeating the well-known phenomenon of manufactured tension and provocations against Greece."
Sixteen party delegations from the Balkans and 12 from Europe will be in Athens tomorrow to attend the Coalition of the Left and Progress' forum on crisis and co-operation in the Balkans. Coalition of the Left and Progress president Nikos Constantopoulos will open the forum, entitled "Balkan Forum of the Left". It will end on Sunday.
A speech by Foreign Minister Karolos Papoulias will also be read, stressing the need for co-operation between countries in the region to solve their problems and noting that ethnocentric approaches lead to impasses.
A delegation from the Gorbachev Foundation, headed by academic Georgi Sahnazarov, held talks with Mr. Constantopoulos yesterday on the situation currently prevailing in the Balkans. The delegation is in Athens to attend the forum. The two sides agreed to develop their relations primarily on European, Balkan and Black Sea issues.
Parliament President Apostolos Kaklamanis yesterday officially announced the recess of Parliament for the summer today, several days before the expected date.
Addressing party spokesmen protesting over the move, Mr. Kaklamanis said parliament's presidium had been informed, and there was therefore no case of catching anyone by surprise. He added that the decision had been reached after consultation with the prime minister.
New Democracy party leader Miltiades Evert, in a statement later, acknowledged that the government had the right to adjourn parliament, but expressed indignation over the fact that his party had been informed of the decision only yesterday. He described it as "unacceptable, antidemocratic, unethical, and betraying a lack of sensitivity."
Communist Party parliamentary spokesman Antonis Skyllakos described the government's decision as unacceptable, and asked for the setting of a date for a special debate on the revision of the Treaty of Maastricht before the summer recess.
Political Spring party leader Antonis Samaras told Flash radio station that the decision amounted to a parliamentary coup d'etat, and accused New Democracy of colluding with the government. The Coalition of the Left also described the decision as unjustifiable, provocative and unacceptable.
Prime Minister Andreas Papandreou held a meeting yesterday with Interior Minister Costas Skandalides to discuss ministry issues. Following the meeting, Mr. Skandalides told reporters that talks focused on "all pending ongoing legislative initiatives such as civil defence and party funding."
Mr. Skandalides also briefed the prime minister on developments in regional works. President Kostis Stephanopoulos also met with Mr. Skandalides later.
Environment, Town Planning and Public Works Minister Costas Laliotis yesterday approved 6.2 billion drachmas for the first half of the year for public works projects in Thessaloniki, in the framework of a programme to prepare for the city's assumption of the Cultural Capital of Europe title in 1997.
The programme, which is part of a wider programme called "Thessa-loniki in the 21st century", has a total budget of 62 billion drachmas.
The European Economic Area's Financing Mechanism will provide subsidies of 2.4 billion drachmas, through the European Investment Bank, for the restoration and maintenance of monasteries on Mount Athos.
The contracts will be signed by Alternate National Economy Minister George Romaios and EIB Vice-President Panayiotis Yennimatas on June 5 at the "Panayia Philanthropini" cultural centre in the town of Ormylia, Halkidiki. The subsidies will complement the eight billion drachma package announced by the government on Monday.
Following Wednesday's stormy New Democracy parliamentary party session, milder tones prevailed in yesterday's meeting of the party's Central Committee. Leader Miltiades Evert said the PASOK government was in a state of collapse and that the opposition's aim was to propose reliable solutions.
Defending his tactics as opposition leader, Mr. Evert said "acrimonious and hard opposition only serve to hold PASOK together, and for this reason our tactics must be governed by proposals and solutions." Power is not an end in itself, he added. "The party must go out to society and convince it of the soundness of its positions."
Former minister Achilleas Karamanlis, who on Wednesday accused former premier Constantinos Mitsotakis of creating problems within the party, said Mr. Mitsotakis had "an increased responsibility to defend and implement party unity." The former premier refused to comment on Mr. Karamanlis' statements, saying he was not concerned.
The Council of Energy Ministers in Luxembourg yesterday devoted most of its time to the complicated issue of a common market for electric power. An extensive discussion focusing on a French European Union presidency proposal shaped two principal trends: complete market deregulation and controlled deregulation.
Industry, Energy and Technology Minister Costas Simitis backed the French proposal, siding with the second trend.
Representatives from France, Italy and Greece place particular importance on the safety of energy supply and serving economic interests in general. They claim the aims of mutual safety are better achieved when the possibility exists for long-term energy investment planning in member-states.
Another group, headed by Britain and Germany, favours the immediate deregulation of the electric power market and facilitating competition in the sectors of production, transfer and distribution of electric power.
Greek Energy Commissioner Christos Papoutsis believes the two conflicting trends can be combined into a compromise solution. The discussion was not expected to reach any decision and would be continued by future Councils.
The Council of Ministers ratified a resolution concerning the "Green Paper" on common energy policy. The resolution recognises the need to integrate the internal market and energy's contribution to economic and social cohesion. It takes into consideration Greek positions on environmental sensitivity, the relation with transport policy and research.