The rejection of military intervention as a means of resolving the Bosnia crisis was the conclusion of discussions among foreign ministers of the 15 European Union member-states. Greece's Karolos Papoulias said afterwards that the foreign ministers' council had not reached any definitive decisions, but the views expressed converged on "the exclusion of the military solution."
Yesterday's meeting was attended by the EU's new mediator for the former Yugoslavia, Sweden's Karl Bildt, who, Mr. Papoulias said, stressed that "the military solution can only be made acceptable if those who will undertake it are resolved to carry it to the end."
For his part, the Greek foreign minister emphasised that such an eventuality would mean "a new Balkan war and the irreparable unsettling of security balances in Europe." He also warned that the cost of withdrawal of peacekeeping forces would be very high and that interventions of limited scope, such as aerial bombardments, "created greater impasses."
"We all accept that the only solution is the political-diplomatic one, and it cannot be successful without prior negotiations among all parties involved in Bosnia," Mr. Papoulias said. He referred to the positive response given a Greek proposal for the convening of a Geneva-style international conference with participation of all involved parties, which would aim mainly at effecting a cease-fire, strengthening protection for peacekeepers and securing the provision of humanitarian aid to civilians.
Mr. Papoulias said if an agreement, which was nearly achieved recently between Serbian President Slobodan Milosevic and US emissaries, concerning the recognition of Bosnia-Herzegovina by Serbia with a simultaneous "generous lifting of lifting of sanctions" against Yugoslavia was implemented, then "the road to Geneva 1995 would open in the next few days." He added that he would have the opportunity to expand on these proposals to Bosnian Foreign Minister Mohammed Sacirbey, expected in Athens on Thursday.
Mr. Papoulias also had a private discussion with his Russian counterpart Andrei Kozyrev, in view of the latter's forthcoming visit to Athens, saying he found "a coincidence of estimates and measures that must be adopted on Bosnia." He praised the competence of Mr. Bildt, whom he described as "a man of clear mind, realism and well-versed, who adapted to the Balkan labyrinth in a very short time."
The main target of the government's 1996 economic policy is a continuation of efforts to stabilise the economy while at the same time accelerating development and increasing investments. According to the National Economy Ministry's semi-annual report on current developments and prospects in the Greek and international economies, a prerequisite for attainment of this target is realisation of 1995 macroeconomic targets, particularly with regard to inflation, as well as strict adherence to this year's state budget.
In the report the general directorate for economic policy of the National Economy Ministry forecasts a 2.3 per cent increase in gross domestic product (GDP) in 1996, which is 0.6 per cent higher than an estimate contained in the revised economic convergence programme. The accelerated growth of GDP is expected to result from an increase in domestic demand, particularly private investments (up approximately 5.1 per cent) and public investments (up to 10 per cent).
By contrast, public consumption is expected to fall by 0.5 per cent. The government's economic policy for 1996 will focus on modernising public services, strict implementation of tax law and any additions or modifications deemed necessary after a year in effect. Continued implementation of the current anti-inflation, monetary and exchange policies are other areas the government will focus on.
In addition, efforts will be made to speed up completion of public works, make better use of public organisations' assets, combat unemployment and continue with a cautious incomes policy which, however, envisions a safeguard of workers' incomes.
On the development front, the main thrust of the government's efforts will be to strengthen the competitiveness of the Greek economy through implementation of a new development law, a further reduction of loan interest rates, simplification of investment procedures, modernisation of the stock exchange and an increased participation of private capital in the production process.
According to the National Economy Ministry, investments are expected to pick up during the current year. At fixed prices, it is estimated that total investments will increase by 8.7 per cent. Production investments are expected to account for 6.8 per cent, and private investments and housing for 1 per cent. It is anticipated that the corresponding increase for public investments will be much higher.
Forecasts are based on the fact that with regard to public investments, outlays from the Public Investment Programme increased by 33.3 per cent in the first five months of 1995 compared to the corresponding period last year.
As far as private investments are concerned, the capital goods production index rose by 4.1 per cent between January and April this year, compared with a 1.5 per cent drop in the same period of 1994. In addition, applications submitted for approval by the National Economy Ministry of investments under provisions of the development law appear to further substantiate forecasts.
An increase in the volume of exports by 4.8 per cent in 1995 and 5 per cent in 1996 is also projected in the ministry report. This forecast is based on a considerable increase in the growth of GDP in European Union countries and an only small increase in the cost of Greek labour.
However, the rate of increase forecast for Greek exports is lower than a corresponding increase for international trade, which means Greek exports are losing their share of international markets. This may be attributed to various factors, the report stated, such as the difference between the increase in the cost of production and distribution in Greece as compared with competitor countries, but also to structural weaknesses.
The recently publicised OECD report on the Greek economy in 1994 pointed to just such weaknesses, stressing in particular the small volume of Greek exports to the United States and Asia, where demand is increasing much faster than in other parts of the world.
Another structural weakness of the Greek economy is the fact that high - and medium - technology products, for which demand has increased internationally, account for only a small proportion of Greek exports At the same time, an increase in the volume of imports of 4.3 per cent in 1995 and 5.3 per cent in 1996 is expected due to an anticipated acceleration of the growth of GDP and investments in equipment.
The rate of increase of imports is expected to be higher than the corresponding increase of exports, with no improvement in the trade balance as a percentage of GDP projected. Volume of imports now stands at more than three times higher than the volume of exports.
President of the Republic Kostis Stephanopoulos said Greece was not responsible for problems created with Albania and Skopje in speaking to island residents during a tour of smaller islands in the eastern Aegean.
"The embargo was a defensive move on Greece's part after recognitions (by other countries) of the Former Yugoslav Republic of Macedonia (FYROM). Greece does not feel threatened by Skopje, but it has been insulted. The insult stems from the propaganda, the maps, school books, the symbol and the name," Mr. Stephanopoulos added.
Referring to the issue of relations between Greece and Turkey, Mr. Stephanopoulos said "the problem which exists emanates from the neighbouring country's stance, which suffers from a lack of democracy and respect for human rights." Mr. Stephanopoulos accused Turkey of lack of respect for international agreements and conditions, being the only nation refusing to ratify the Law of the Sea Convention, which gives Greece the right to extend its territorial waters to 12 nautical miles.
During his trip, President Stephanopoulos was accompanied by Interior Minister Constantinos Skandalides and Aegean Minister Antonios Kotsakas. He announced that he will visit other Dodecannese islands in September during his trip to Patmos for the 1,900th anniversary of the writing of St. John's Book of Revelations.
Speaking on the island of Kos Saturday, President Stephanopoulos said "political animosities in Greece are being lessened, while a national consensus in behaviour and decisions is beginning to prevail."
Negotiations for the signing of a final agreement for construction of the new Athens international airport at Spata suddenly collapsed late last night. Although Environment Minister Kostas Laliotis said after meeting with the prime minister yesterday that the contract would be finalised in an evening meeting with representatives of the consortium of companies led by the German Hochtief group, later discussions did not produce a successful result. Mr. Laliotis said afterwards that negotiations would be resumed, but without specifying when.
Parliament President Apostolos Kaklamanis yesterday praised the European Parliament's positive stand regarding the issue of human rights violations in Turkey and reservations on that country's prospective customs union with the EU. Speaking at an official dinner in honour of European Parliament President Klaus Haensch, who arrived in Athens yesterday.
Mr. Kaklamanis said this position was yet another proof of adherence to principles of democratic liberties and human dignity, in contrast to the "indifference of certain governments" wishing to play a primary role in a common European course. Greek citizens, he said, expected the Europarliament to provide solutions to the EU's pressing problems in employment, social infrastructure, environment as well as internal and external security.
He said Greece looked forward to the Intergovernmental Conference of 1996, as it fully believes in basic principles such as a safeguarding of political and economic cohesion, Community solidarity and unanimity in decision-making with respect to the defence of vital national interests.
Mr. Kaklamanis also referred to issues of foreign policy and defence, the creation of conditions for convergence of economies and to the emergence of a European cultural identity through the safeguarding of cultural and linguistic autonomy.
In his address, Mr. Haensch said Turkey's customs union with the EU should proceed independently of the issue of human rights. In response, Mr. Kaklamanis said the realisation of such a union under present conditions would create a danger inside Europe.
Representatives of several national Orthodox Churches met at the seat of the Ecumenical Patriarchate yesterday and addressed a call to the Roman Catholic Church to abstain from celebrations of events that weigh heavily on the memory of the Orthodox Church. The statement made particular mention of the upcoming 400th anniversary of the convening of the so-called 'unitary' synod of Brest Litovsk.
The gathering was called by Ecumenical Patriarch Vartholomaios and attended by representatives of the Churches of Constantinople, Alexandria, Antioch, Serbia, Romania, Georgia, Albania, Greece, and Finland.
Delegates reviewed the progress of dialogue with the Roman Catholic Church in the light of proposals contained in the latest papal encyclical on criteria for an theological dialogue between the two churches. The Patriarch briefed the committee of delegates on the recent discussions held in the Vatican with pope John Paul II.
The committee decided to continue the dialogue only on the issue of the Uniate Church - an eastern rites sect found in several eastern European countries that recognises the primacy of the pope - with a possible expansion of topics after evaluating the progress recorded.
Hellenic Telecommunications Organisation (OTE) inaugurated yesterday a pilot programme of the "telepoint" telecommunications system on Rhodes. The project is part of the Telecommunications Urgent Development Programme (EPAT), with implementation assigned by OTE to the Dassault and Intracom companies.
Rhodes was chosen by OTE for the pilot programme due to its developed tourist industry, which is expected to secure the financial return for the investment. Rhodes and four other Dodecannese islands (Simi, Tilos, Halki and Kastellorizo) today possess an advanced telecommunications network with 70,000 digital telephones and "mini-links" radio systems for the remotest areas.
A 36-year-old Bulgarian woman was sentenced yesterday to 13 months in prison for assisting in the escape of a hospitalised inmate, according to judicial sources in the Thracian city of Komotini. Attorney and economist Kallinika Polimerova was handed the prison sentence by a three-member court in Komotini. She was arrested Friday together with her boyfriend Lazaros Papadopoulos, wanted since his escape from a local hospital.