Athens News Agency: Daily News Bulletin in English, 96-11-30

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From: The Greek Press & Information Office, Ottawa Canada <[email protected]>

ATHENS NEWS AGENCY BULLETIN (No 1054), November 30, 1996

Greek Press & Information Office
Ottawa, Canada
E-Mail Address: [email protected]

CONTENTS

[01] Crucial state budget tabled in Parliament

[02] Revenue

[03] Expenditure

[04] Reactions

[05] Simitis, Evert debate over tabled budget

[06] EU member-states' ambassadors in Athens briefed on Greek positions concerning IGC

[07] Simitis to attend OSCE meeting in Lisbon

[08] Gov't says allegations of Turkish ties to forest fires under scrutiny

[09] Mitsotakis doesn't rule out another run at premiership

[10] Yiannopoulos attends EU Council of Justice Ministers meeting

[11] Gerry Adams presents his autobiography in Athens

[12] Eurodeputy raises question of press freedom in Turkey

[13] G. Papandreou meets with Vartholomeos at Phanar

[14] Farmers' mobilizations block roadways throughout nation

[15] Gov't breaks off negotiations with Makedoniko Metro consortium over Thessaloniki metro

[16] Upgrade projects for border post announced

[17] Jobless rate rises in first 10 months of '96

[18] Participants at Lisbon World Expo meet

[19] Four suspects charged with drug smuggling remanded in custody

[20] The Athens dailies at a glance

[01] Crucial state budget tabled in Parliament

Athens, 30/11/1996 (ANA)

A five-day debate on the budget, submitted by National Economy and Finance Minister Yiannos Papantoniou, begins in Parliament on Tuesday, Dec. 17, culminating in a vote on Saturday, Dec. 21.

The relevant Parliamentary committee will hold a three-day discussion on the budget starting next Wednesday.

Presenting the budget, Mr. Papantoniou reiterated that no new taxes would be imposed in 1997, apart from those already announced and contained in the budget.

He added that the present time is the "most difficult but best phase of the great struggle for convergence."

"There will be no further tax legislation in 1997," Mr. Papantoniou said, stressing that all tax measures announced "refer exclusively to the wealthy and high-income brackets."

He also pointed out that if tax brackets were index-linked to inflation, as demanded by trade unions, the loss of revenue for the state would be in the region of 100 billion drachmas.

Mr. Papantoniou said a list of major tax evaders whose cases have been referred to justice would be published in the next few days.

More names would be announced during 1997, he added, of individuals involved in fuel smuggling, evasion of VAT payments and other financial offenses.

A principal government target is achieving GDP growth amounting to 3.3 per cent in 1997 (since the corresponding average in the OECD and the European Union will be 2.5 per cent) and renders the real convergence of the Greek economy with the EU feasible for the second consecutive year and in general will make 1997 an exclusive year of recovery and development.

He said the government's target of 4.5 per cent inflation for 1997 was "ambitious but necessary because everything depends on the reduction of inflation."

Mr. Papantoniou called on workers and the producer classes to curtail their income demands and on businesses to contain their prices.

He pledged that public utility rate increases in 1997 would be "small or zero", adding that civil servants' salaries would increase by 7.9 per cent on average in 1997 and pensions by about 6 per cent, "despite what the opposition and workers might be claiming."

The fact is, Mr. Papantoniou stressed, that the expenditure entry in the budget for all categories of remuneration, including salaries, pensions etc., is up by 7.7 per cent against 1996, namely 3.294 trillion drachmas in 1997 compared to 3.058 trillion drachmas the previous year.

Mr. Papantoniou said that on the basis of an estimated rate of inflation of 7.8 per cent at the end of 1996, real average annual increases in the public sector this year exceeded 10 per cent, the highest rate for the last five years.

At the same time, pensions increased nominally by 14.8 per cent in 1996 and in real terms by 7 per cent on average.

For the economy as a whole, including the private sector, where pay increases were smaller than in 1995, the gross average remuneration of workers increased in 1996 by 10.9 per cent, compared to an increase of 12.7 per cent in 1995.

Mr. Papantoniou pointed out, however, that pay increases exceeded inflation for the third successive year and, therefore, there was no reduction in real income.

[02] Revenue

Athens, 30/11/1996 (ANA)

The additional revenue will come from 19 main sources, including the natural increase in revenue due to the increase in national income, the last installments for the settlement of outstanding tax affairs, the new provision for the collection of taxes assessed and the adjustment of taxation of legal persons.

Other sources are taxation of bonds, treasury bills and foreign exchange deposits, taxation of large real estate holdings, abolition of tax exemptions and fines for illegal construction.

The 1997 regular budget provides for revenue of 2.271 trillion drachmas from income tax and 127.5 billion drachmas from real estate tax, of which 25 billion drachmas will come from the new provision taxing large real estate holdings.

Indirect taxation will contribute 5.014 trillion drachmas to state coffers, of which 84 billion drachmas will come from road tax, 145.3 billion drachmas from the special consumption tax on private vehicles, 955.5 billion from fuel tax, 76. 2 billion drachmas from the tax on alcoholic beverages and 465.2 billion drachmas from the tobacco tax.

Value Added Tax (VAT) is expected to contribute a total of 2.520 trillion drachmas, while non-fiscal revenue will reach 843.6 billion drachmas.

The total revenue of the general budget is 9.532 trillion drachmas, an increase of 17.5 per cent over 1996, of which the regular budget will account for 8.715 trillion drachmas, marking an increase of 15.6 per cent.

[03] Expenditure

Athens, 30/11/1996 (ANA)

On the basis of these figures, the deficit, or borrowing requirements, will total 2.010 trillion drachmas, marking a drop of 27.1 per cent. The regular budget deficit, without debt servicing, is estimated at 1.510 trillion drachmas, marking a decrease o f 31.7 per cent.

As a percentage of GDP, the deficit will therefore fall to 6.2 per cent, from 9.3 per cent this year.

The state budget for 1997 is expected to record a primary surplus of 1.458 trillion drachmas, an increase of 105.6 per cent, while it is estimated that GDP at current prices will reach 32.643 trillion drachmas, an increase of 10.4 per cent.

The 1997 budget allocates 696.85 billion drachmas for defense, an increase of 12.8 per cent, 1.158 trillion drachmas for education, up 18.4 per cent, 809.95 billion drachmas for health and social welfare, an increase of 10.9 per cent, 1.015 trillion drachmas for social security, up 2.8 per cent, 175 billion drachmas for social policy, 390 billion drachmas for agriculture, an increase of 7 per cent, and 4.176 billion drachmas for other expenditures, an increase of 15.7 per cent.

A total of 1.286 trillion drachmas has been set aside for subsidies and a further 575.4 billion drachmas for consumer expenditures.

In addition, a reserve of 100 billion drachmas has been formed for contingent expenses.

The main elements in the agricultural sector, apart from price supports and the speeding up of structural changes in agricultural produce, are an increase in farmers' pensions at a higher rate than inflation, the transformation of the Farmers Pension Fund (OGA) into a main insurance fund and the extension of health and welfare services to farmers, which is supported financially by the 1997 budget.

The total amounts of inflows for agriculture from national and European Union funds are expected to total 1.556 trillion drachmas (672.4 billion drachmas as national and 884.1 billion drachmas as EU funds) in 1997, and will be 2.1 per cent higher than i n 1996. According to proposals contained in the budget report, the effort to tackle structural problems in Greek agriculture, which is imperative at present, will continue through these funds.

The EU Structural and Cohesion Funds will provide Greece with increased resources next year, which to a great extent will offer financial support for the planned increase of the Public Investment Program (totaling 1.66 trillion drachmas in 1997), according to the budget. The aim is the unimpeded implementation of all projects, primarily the major ones, so that delays in the absorption of funds of previous years are covered.

The total receipts from the EU budget are expected to amount to 1.926 trillion drachmas in 1997 as against an assessment on the absorption of 1.817 trillion drachmas by the end of 1996 (a 6 per cent increase). Thus, Greece's payments to the EU will amount to 396.7 billion drachmas (a 13.9 per cent increase compared to 1996) and as a result the country's net receipts from the EU are estimated at 1.529 trillion drachmas (a 4.1 per cent increase compared to 1996).

Greece's net fiscal benefit (receipts less payments paid to the EU) is expected to amount to more than 1.469 trillion drachmas this year and will be 36.3 per cent higher compared to last year (slightly more than 1.077 trillion drachmas).

For the first time Greece will have to contribute to funding the EU's social policy in 1997 due to Britain's absence.

[04] Reactions

Athens,30/11/1996 (ANA)

Mr. Evert said the policy of increasing taxes would lead the economy into recession and dismissed government forecasts of inflation for 1997 as "unrealistic."

The aim of the forecasts, he charged, was to affect incomes policy and negotiations on collective labor agreements.

In particular, the ND leader attacked Prime Minister Costas Simitis, saying "from an unreliable prime minister one cannot expect a reliable budget."

New Democracy, Mr. Evert added, was opposed to increasing taxes and in favor of reducing the "voracious" state, and promoting development through investments. ND parliamentary spokesman Stavros Dimas described the budget as "the harshest, most unfair, deceitful and ineffective" of the last 15 years.

"This budget reduces the purchasing power of workers and pensioners, prolongs economic recession and contributes to the even greater divergence of the Greek economy from the economies of the other European countries," Mr. Dimas said.

Coalition of the Left and Progress (Synaspismos) leader Nikos Constantopoulos said the tabling of the 1997 budget was surrounded by "an atmosphere of rage and indignation" in Greek society.

He said the Greek people did not have a need for advertising campaigns in order to "realize the choices and the measures increasing social problems."

Mr. Constantopoulos said the budget "follows the established course" in dealing with the problems of development, social cohesion, public sector restructuring and use of the country's social and national resources.

Describing the 1997 budget as "insincere," he said its basic figures, like inflation, "are portrayed with the traditional government tricks."

Concluding, Mr. Constantopoulos said his party will debate the budget in Parliament, even though "there was no timely briefing or political and social dialogue."

The leader of the Democratic Social Movement (DHKKI), Dimitris Tsovolas, said the budget was "inhumane", "class discriminating," and led to a "deadlock."

"The 1997 budget will make the rich richer and the poor poorer and will increase instead of solve the financial and social problems," he added.

Mr. Tsovolas said the budget will lead the Greek economy to disorganization and diversion as well as social upheaval.

Concluding, Mr. Tsovolas called on all citizens "who are subjugated by the government's economic policy and are concerned about their future" to struggle.

The Political Spring (Pol.An) party issued an announcement accusing the government of "lack of political courage."

According to the announcement, the lack of political courage that characterizes the governments in the past 17 years is "worse and more catastrophic than the gigantic public deficit and debt which is forcing the Greek economy and the nation to oblivion. "

General Confederation of Greece's Workers (GSEE) leader Christos Polyzogopoulos said the government's appeal to workers to be understanding of its economic policy "cannot be accepted."

Noting that business profits in the past decade have increased as opposed to employee wages and pensions, Mr. Polyzogopoulos urged the government to proceed with the indexation of the tax scale and corrective measures to protect the income of employees and pensioners.

Under these conditions, he added, the trade unions would be willing to discuss the government's economic policy regarding development, stabilization of the economy and social problems.

[05] Simitis, Evert debate over tabled budget

Athens, 30/11/1996 (ANA)

During discussion of a question tabled by Mr. Evert concerning the Organization for the Restructuring of Enterprises (OAE), the ND leader spoke of "a disintegration of the state", for which "Simitis and his government are proud of"

The opposition leader said that domestic borrowing had risen from 4.2 trillion drachmas last year to 11 trillion drachmas, marking an increase of 158 per cent.

Replying to Evert, Mr. Simitis said it was well known that debts had accumulated and "who is responsible for this." The premier added that the government was making a great effort to tackle the problem.

"There is already a draft law aimed at cutting spending, while with the budget tabled today (yesterday), the aim of the government is to secure funds and curb expenditures," Mr. Simitis said.

[06] EU member-states' ambassadors in Athens briefed on Greek positions concerning IGC

Athens, 30/11/1996 (ANA)

Mr. Kranidiotis stressed the need for the EU to move forward on the basis of the principle of equality among member-states and "institu-tional balance."

He expressed reservations about the efforts of certain EU countries, such as France and Germany, to promote the concept of "flexibility" as a general EU principle.

Such a principle, he added, entailed the risk of splitting Europe into two categories of countries and thus undermining the very foundations of the 15-member Union.

Mr. Kranidiotis also underlined the need for a new EU treaty to contain provisions on respect for the inviolability of borders and the territorial integrity of the EU, as well as an expressed clause on political solidarity.

He told the EU member-states' ambassadors that consolidation of these principles would be a prerequisite for ratification of the new treaty by the Greek parliament.

[07] Simitis to attend OSCE meeting in Lisbon

Athens, 30/11/1996 (ANA)

Government spokesman Dimitris Reppas did not rule out the possibility of Mr. Simitis meeting briefly with US President Bill Clinton on the sidelines of the meeting, although he said there is no official meeting scheduled between the two.

[08] Gov't says allegations of Turkish ties to forest fires under scrutinity

Athens, 30/11/1996 (ANA)

Mr. Reppas said no demarche has been made as yet, as all aspects must be carefully examined, adding that Athens is also awaiting the initiatives to be undertaken by judicial or other authorities in Turkey, "if Ankara is thinking of closely following the issue, so that the truth may shine."

The government spokesman said that if Athens wishes, it could ask for intervention by Turkish courts, and has the ability to request an appeal in a political manner to international fora or to undertake legal initiatives.

[09] Mitsotakis doesn't rule out another run at premiership

Athens, 30/11/1996 (ANA)

"I support Mr. (George) Souflias' (a recent party leadership contender) candidacy, which can be unifying and can open prospects for the country," he said.

"From there on, I have said that as long as I am in active politics, of course I am at the disposal of the party and of the country. If at any time I can offer a service, I will do so."

Mr. Mitsotakis said the forthcoming party congress must be "representative and genuine", and must express the "popular base", adding that "if this occurs, ND will find its way, as long as the elections for the new leader provide the opportunity for the grass roots to express their will, and they are not held based on contrived mechanisms, which will simply recreate the crisis."

The former prime minister said that he will accept ND president Miltiades Evert's election at the congress if the election is honest and representative.

"If the congress is honest and representative, I personally believe Mr. Evert will not even be a candidate, he will not have the ability to appear," he said.

Meanwhile, Mr. Souflias called on Mr. Evert to clarify whether he will be a candidate for the leadership.

"An honest congress devoid of doubts requires conditions for candidates to be equal," he said. "This applies for Mr. Evert as well, who can not alternate between being a referee and a player."

Mr. Souflias' proposed the congress be expanded to 1,889 members, who would be elected directly by all members of party organizations.

[10] Yiannopoulos attends EU Council of Justice Ministers meeting

Brussels, 30/11/1996 (ANA - M. Spinthourakis)

Speaking at the Council, Mr. Yiannopoulos supported the common action plan, adding that crimes concerning an underage victim constitute a grave offense for social living conditions, since they harm both the body and mental health of young people.

"The concept is common, that combating the rapid spread and trafficking of drugs, both in Europe and internationally, requires the taking of coordinated action," he added.

[11] Gerry Adams presents his autobiography in Athens

Athens, 30/11/1996 (ANA)

Mr. Adams said he would make representations to the Irish Republican Army (IRA) for resumption of the peace process in Northern Ireland, expressing regret that British Prime Minister John Major has rejected new proposals submitted by him and Social Democratic Labor Party leader John Hume for a lifting of the deadlock.

"Mr. Major should accept negotiations without preconditions," he added.

Replying to a question by ANA, he said the Australian government's decision not to grant him a visa was isolated and the result of British pressures, adding that if Britain had been able, it would have pressured Greece, too.

According to Mr. Adams, the British administration in N. Ireland was akin to the now defunct apartheid system in South Africa, with the Catholics sustaining an unemployment rate of two-and-a-half times greater than the Protestants.

"The citizens of my country have the right to self-determination and respect for their cultural difference," he added.

[12] Eurodeputy raises question of press freedom in Turkey

Brussels, 30/11/1996 (ANA)

Mr. Kranidiotis requested to be informed of the possible reactions of the two EU bodies on the issue.

According to Mr. Kranidiotis, Turkish Justice Minister Sevget Kazan told the Turkish Parliament earlier this week that the "mass media must be brought under control so as to stop disparaging, insulting, and ridiculing the Turkish government."

Prime Minister Necmettin Erbakan has also announced plans to promote a series of measures controlling all media, with the exception of the Islamic press.

[13] G. Papandreou meets with Vartholomeos at Phanar

Istanbul, 30/11/1996 (ANA-A.Kourkoulas)

Mr. Papandreou, who left for Istanbul yesterday, also held talks with Ecumenical Patriarch Vartholomeos.

After the meeting he told reporters he was particularly pleased over his visit to the Ecumenical Patriarchate, adding that within the framework of his visit he will take the opportunity to meet with members of the small ethnic Greek community of Istanbul.

[14] Farmers' mobilizations block roadways throughout nation

Athens, 30/11/1996 (ANA)

Farmers' committees are scheduled to hold meetings over the next few days in order to decide on further mobilizations, while they continued to request a meeting with Prime Minister Costas Simitis in order to receive an immediate reply to their two main demands, namely, subsidized fuel and increases subsidies per stremma of crops.

On his part, government spokesman Dimitris Reppas underlined the government's sensitivity in "demands put forward by social groups, particularly when they are just."

However, he added that mobilizations must not be taken to the extent that they make communication and dialogue difficult. The government spokesman underlined the "important steps the government has taken for farmers," saying mobilizations should not be escalated with such ease.

In a related development, Agriculture Minister Stephanos Tzoumakas acknowledged that farmers are facing serious problems, but said these problems cannot be solved through blockades, adding that mobilizations originate in certain political circles and develop according to a specific plan.

Replying to Mr. Tzoumakas' statements, Communist Party of Greece (KKE) Secretary General Aleka Papariga replied: "We have never hidden the fact that we support and participate in the farmers' mobilizations."

Meanwhile, Coalition of the Left and Progress (Synaspismos) Eurodeputy Alekos Alavanos submitted a question in the Europarliament asking for approval of an income support fund so cotton producers' income reaches 90,000 drachmas per cultivated stremma.

[15] Gov't breaks off negotiations with Makedoniko Metro consortium over Thessaloniki metro

Athens, 30/11/1996 (ANA)

A statement by the environment, town planning and public works ministry yesterday stated that the decision was taken due to the fact that Makedoniko, as a provisional contractor, is unable to meet obligations regarding both construction and management o f the concession after completion of the project.

The statement also said that construction of the project is "the government's immovable decision and commitment" and that credits already approved will not be transferred elsewhere.

Makedoniko president Prodromos Emfietzoglou, who is also the president of the Mechaniki construction firm participating in the consortium, appealed to Prime Minister Costas Simitis to reconsider the ministry's decision, and announced that the consortium would appeal to the Council of State and responsible organs of the European Union.

He claimed that divergences referred to in the ministry's decision were related to two conditions introduced two years after approval of the consortium as a provisional contractor. Mr. Emfietzoglou also charged that "in Greece the competent ones are undermined and the money is given to the foreigners," and expressed doubts that the project will be ultimately constructed by the Thessaloniki Metro consortium, led by the French company Bouyues.

[16] Upgrade projects for border post announced

Athens, 30/11/1996 (ANA)

[17] Jobless rate rises in first 10 months of '96

Athens, 30/11/1996 (ANA)

As documented by the Organization for the Employment of Human Resources (OAED), unemployment this year reached 7.3 per cent of the working population, up from last year's 6.9 per cent.

However, unemployment figures fell slightly in October to 7.1 per cent, compared to 7.2 per cent for the same month in 1995.

[18] Participants at Lisbon World Expo meet

Lisbon, 30/11/1996 (ANA)

Greece was represented by the national economy ministry's international economic relations secretary general, Nikos Zahariadis, in his capacity as Greece's general commissioner at the exhibition.

During a relevant ceremony, where the Greek flag was raised in the presence of Athens' ambassador to Portugal, the Greek commissioner signed the contract for Greece's official participation.

[19] Four suspects charged with drug smuggling remanded in custody

Athens, 30/11/1996 (ANA)

A Serres magistrate ordered the four women in custody on charges of "possession, sale and distribution of narcotic substances", after questioning them for 15 hours over the past three days.

According to reports, the four suspects were identified as Diana Iordanova, 50, Aleka Dimitrova, 53, Elisabeth Valtseva, 51 and Milia Angelova, 50.

During questioning, the four claimed that they intended to deliver the pills to compatriots in Athens for sale at street markets.

According to information in the hands of police and customs authorities, the four women are "known" members of the Bulgarian underworld, and are alleged to have illegally entered Greece from Bulgaria on several occasions with quantities of heroin and hashish, which they subsequently sold in Athens and Thessaloniki.

The four were arrested while traveling on a bus heading for Athens from Sofia via Thessaloniki. The illegal narcotics were discovered in the false bottoms of their suitcases.

[20] The Athens dailies at a glance

Athens, 30/11/1996 (ANA)

ADESMEFTOS TYPOS headlined "The rage of the desperate - The people the only opposition to the government" (pp. 26, 39-40), "They knew about the Turkish arsonists, they concede now, but did nothing to catch them" (p. 6), and "Evert once again becomes a bulldozer - He and his Executive Committee rejected proposals for widened Congress" (p. 5).

APOGEVMATINI led with "Farmers' revolution - National highways occupied" (pp. 4, 11-14,), and "Greece sighs and strikes, ND bickering over the Congress, and (Prime Minister Costas) Simitis rubbing his hands in glee" (p. 5).

AVGHI headlined "Yesterday's strike strongly felt - The government worried over the message of resistance to austerity" (p. 3).

AVRIANI led with "Parliament covered up the casino scandal" (p. 4), "Evert seeking rift in ND" (p. 3), "Simitis instructions: Nab the big-time tax evaders - Arrests and publication of big names of tax dodgers" (p. 7), and "Athens to seek explanations from Ankara" (p. 3).

ELEFTHERI ORA headlined "Mitsotakis: Evert has turned ND into a whore" (p. 6).

ELEFTHEROS led with "Lessons from PASOK" (p. 11), and "No to the looting of incomes" (pp. 8-10).

ELEFTHEROS TYPOS headlined "Terror from the uprising - They're holding back the tax bill for a 'face-lift' - Simitis searching for Trojan Horses among the trade unionists" (pp. 22-24, 41).

ELEFTHEROTYPIA led with "Farmers escalating the roadblocks" (pp. 7, 20, 45), "Tax evaders to be arrested" (p. 4), and "ND ring: Blows without knockout" (p. 5).

ETHNOS headlined "The Turks burnt Attica" (pp. 4-5), and "Strikes: It's going to be a hot December" (pp. 14-17).

EXOUSIA led with "International exclusive: 300 Greek investors victims of fraud in Switzerland - The nephew of an ND deputy the mastermind" (p. 33), "The ND congress up in the air - ND back to square one" (p. 9), and "(Turkish Foreign Minister and former premier Tansu) Ciller directly linked with Turkish mafia" (pp. 4-5, 7).

KATHIMERINI headlined "Threats against tax evaders" (p. 4), and "Desperation their only incentive - The mobilizations in the absence of the trade union movement" (pp. 3, 7).

LOGOS led with "The Grey Wolves 'burned' - The Turkish arsonists para-state militants" (p. 3), and "Strikes: Strong message to government" (pp. 8-9).

TA NEA headlined "Arrests of 50 tax evaders for 500 billion dr." (p. 53), and "Strike: Dynamic response to the measures" (pp. 54-55).

NIKI led with "The farming sector laying siege on Simitis" (pp. 6-7), "Nationwide strike: The people spoke" (pp. 6-7), and "Forests: Document 'burns' Ankara arsonists" (p. 11).

RIZOSPASTIS headlined "The just causes will be judged on the streets - Workers, employees, farmers, pensioners and youths protested" (pp. 12-19).

End of English language section.

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