Athens News Agency: Daily News Bulletin in English, 98-05-23

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] IMF urges Greece to adopt tighter economic policy in 1999

[02] SE Europe defence undersecretaries agree on Balkan peacekeeping force

[03] NATO commander 'concerned' over S-300 deployment

[04] Gov't spokesman on S-300 missiles

[05] Joint Greek-US military exercise in early June

[06] Quake near Thebes

[07] Athens reiterates during Hannay visit that Luxembourg summit decisions must stand

[08] Some hopes remain for EU-Turkey Association Council meeting

[09] New code of ethics approved by ESHEA

[10] Papoutsis criticises US approach on EU-Turkish relations

[11] Younger Greeks travel less to EU countries than counterparts, Eurobarometer state

[12] Royal couple to open archaeological exhibition

[13] Communist parties meet in Athens to review and regroup

[14] Minor incidents during teachers' protests

[15] Conference on prefectural governments

[16] Albright cancels visit to Athens, Ankara

[17] Karamanlis criticism of gov't agricultural policies

[18] Karamanlis letter to Parliament President

[19] Kaklamanis at event on Greek public radio

[20] Vartholomeos' tour of Canada anticipated

[21] Barclay's Bank target of second bomb attack

[22] Another major bust of contraband cigarettes reported

[23] EKA labour conference starts with criticism of gov't, unions' leadership

[24] High-ranking meeting on digital TV issue

[25] Austria briefs government on Vienna's EU priorities

[26] Greek stocks surge on privatisation, Hellenic Petroleum float

[27] Athens bourse rises in week, focusing on smaller cap firms

[28] Drachma gains on foreign currencies in week

[29] German business leaders praise Greece's EMU groundwork

[30] Thessaloniki commuters caught in transport turmoil

[01] IMF urges Greece to adopt tighter economic policy in 1999

Greater effort and stringency would be needed in 1999, a landmark year for the economy before possible EMU entry, said the IMF's outline, which is due to be followed by a detailed report.

The IMF, which described the government's planned EMU entry date as ambitious, recommended the abolition of redundancy ceilings, cuts in severance pay and lower minimum wages, especially for youth and unskilled workers.

The recommended measures, coupled with the government's bid to make working hours more flexible and encourage part-time work in the public sector, would allow greater elasticity in the labour market, the IMF said.

Despite several years of progress in the economy, the government had to adhere to its existing policy and tighten it further, it said.

Any deviation from EMU targets or backsliding would lead to difficulties. "Markets will be tough," the report said.

The IMF's proposals on privatisation go further than a scheme announced by the government when it joined the EU's exchange rate mechanism on March 14 as a stepping stone to EMU.

The IMF urged the government to sell more than 51 percent of its shares in public utilities, and privatise state banks more aggressively.

The government should adhere faithfully to the timescale it announced for the revitalisation of loss-making state enterprises, whi-ch the IMF called an open sore on the economy.

Financial markets were especially sensitive to the issue, it said.

Also essential was rapid implementation of an overhaul for the state social insurance sector the government has promised.

Further cuts in public spending were needed, and 1998 wage rises in the private sector should have been lower in order to meet targets for consumer price inflation and competitivity, the report said. ND reaction: - Main opposition New Democracy deputy George Alogoskoufis yesterday said the IMF report is a total "vindication for the reservations ND has expressed over government policies".

Mr. Alogoskoufis, who holds ND's shadow government economy portfolio, added: "It confirms our fears over the difficulties of our country's accession into EMU even by the year 2001."

He stressed that ND has repeatedly accused the government over its privatisation policies through stock flotations, saying they allow for an increased state presence in the banking and public utility system."

Athens News Agency

[02] SE Europe defence undersecretaries agree on Balkan peacekeeping force

Albania, Bulgaria, FYROM, Greece, Italy, Romania, Slovenia, Turkey and the US signed a letter of intent setting out the force's political structure, which will provide the basis on which the respective defence ministers will discuss the military aspect of a plan at a meeting in Skopje on Sept. 26.

Undersecretary Dimitris Apostolakis signed the document on behalf of Greece.

The letter states that the signatories recognise that political and military cooperation strengthens the capacity for securing peace and stability in Europe. Further, it explains that the multinational brigade- size force is available for deployment unde r orders by the United Nations, the OSCE, NATO, or the Western European Union.

However, the exact relation between NATO and the force is not set out.

The text states that the force's mission would not just be to keep but also to make and build peace, ensuring the conditions necessary for the attainment of the desired result. It also refers to the assumption of missions of a humanitarian character.

Finally, the document specifies that the criterion for the assumption of action would be the principle of unanimity among the participants.

Albanian Deputy Defence Minister Ilir Bocka said four countries P Turkey, Greece, Bulgaria and Albania P had offered to host the force's headquarters but the document does not contain a mention of where the Multinational Peace Force South-East Europe ( MPFSEE) will be based. Diplomatic sources said that all efforts for an agreement on that aspect had failed.

Other sources said the Greek side sought to establish in the agreement that no NATO country could take advantage from its participation by obtaining concessions in return.

Participants also discussed the situation in the troubled Yugoslav province of Kosovo and the extension of the mandate, due to end on August 31, of the 700-member United Nations Preventive Deployment mission (UNPREDEP) in the Former Yugoslav Republic of Macedonia (FYROM).

Regarding the ongoing talks between Yugoslav authorities and Kosovo ethnic Albanians, it states that "the solution must be in agreement with the international prototypes and principles securing the rights of individuals and every people irrespective of national origin."

Athens News Agency

[03] NATO commander 'concerned' over S-300 deployment

Gen. Clark, speaking during a US Pentagon briefing on the situation in Bosnia, told reporters that Washington was "naturally very concerned about the situation with the S-300s and how it could develop in Cyprus".

"We are also interested in the continuation of peace between Greece and Turkey and in the strengthening of their cooperation in the Aegean," Gen. Clark said, adding that there had been "signs of progress" over the past year in the Aegean.

He said development of the Reconnaissance Aircraft Projector (RAP) at NATO headquarters in Naples had "allowed us to quickly ascertain and confirm incidents involving the Greek and Turkish air forces through information shared and easily analysed by the two sides."

"RAP is operating from the southeastern flank in Naples, and I think it is an indication of the partial progress that has been achie-ved," Gen. Clark said.

He described Cyprus as a "potential tension point", and said the best way to avoid concerns was to reduce the tension that existed there. Replying to questions, Gen. Clark said he did not see a role that NATO could play in Cyprus.

Athens News Agency

[04] Gov't spokesman on S-300 missiles

Mr. Reppas was commenting on Gen. Clark's remarks of a possible worsening of the situation in Cyprus in the event that the island republic deploys the S-300 missiles.

The government of Cyprus is handling the issue with utmost responsibility, with the backing of Greece, and if progress is achieved in talks on the Cyprus issue or procedures commence for the demilitarisation of the island, then new realities will be cre ated and the issue will be dealt on the basis of these realities, he added.

Athens News Agency

[05] Joint Greek-US military exercise in early June

The exercise entails cooperation and joint training between all Greek military branches on the one hand and US forces on the other.

The purpose of the exercise is to promote cooperation between the two nations' militaries. The exercise was held for the first time in 1993.

Athens News Agency

[06] Quake near Thebes

No damages were reported.

Athens News Agency

[07] Athens reiterates during Hannay visit that Luxembourg summit decisions must stand

Speaking after a meeting in Athens with the British presidency's special envoy for Cyprus, Sir David Hannay, Mr. Kranidiotis also stressed that EU member-states should in the future refrain from sending out the wrong messages to Ankara by isolating Gree ce, such as a recent decision to convene the Union's Association Council with Turkey. "The strengthening of Turkey's European orientation is its (Turkey's) own responsibility, which that country is being called upon to assume itself," the Greek minister s aid.

The two men exchanged views on Cyprus' EU accession course, which Sir David said was developing smoothly. He also briefed Mr. Kranidiotis on the results of British Foreign Secretary Robin Cook's recent trip to Ankara, as well as on Turkey's decision not to participate in the Association Council and on positions of the British presidency in view of the upcoming Cardiff summit.

Sources said the British official stressed to the Greek side that although his government was not prepared to endorse a revision of Luxembourg summit decisions, it considered that there was perhaps need to discuss certain "clarifica-tions" in Cardiff, but without changing the substance of issues.

Responding to questions after a meeting with Alternate Foreign Minister George Papandreou afterwards, the British diplomat declined to be drawn on whether Euro-Turkish differences could be brid-ged.

"I've been working in the European Union for about 30 years now and the one thing I've known is not to anticipate what our heads of government are going to do when they meet," he said.

He added that he would be visiting a number of European capitals to discuss the relevant issues, and then brief Prime Minister Blair ahead of the summit.

Finally, he described his visit to Greece and discussions with Greek officials as "extremely important". "Greece is a country which has a great deal of interest in this matter, so it's right to come here and to talk these things through in detail," he concluded.

Athens News Agency

[08] Some hopes remain for EU-Turkey Association Council meeting

According to Community diplomatic circles, Turkey's boycott of Monday's meeting does not necessarily rule out an Association Council meeting being convened under the British EU presidency.

The 15 EU foreign ministers are expected to discuss the issue of EU-Turkish relations during their meeting on Agenda 2000 on Monday.

Another source said that Turkey appeared "positive" on the possibility of another meeting being scheduled for early June, before the Cardiff EU summit.

Athens News Agency

[09] New code of ethics approved by ESHEA

Athens News Agency

[10] Papoutsis criticises US approach on EU-Turkish relations

The event was organised by the ISTAME-A. Papandreou foundation in Serres.

He was referring to statements by US officials on Turkey's accession to the European Union.

"In no way is it helpful when different messages are being sent to Turkey by the US and the EU. Because precisely this paves the way for the development of Turkish intransigence. At this point we must point out the responsibilities which the US also has ," he added.

"The participation of our country in Economic and Monetary Union (EMU) constitutes a national and long-term option since it safeguards our country's equal participation in the Union's central nucleus," he added.

However, Mr. Papoutsis underlined that EMU is a major option but is not a purpose in itself, adding that EMU constitutes a tool for Europe to face the economic challenges of our times with success.

"We must go ahead with with the necessary structural changes and indeed without delay.

This is a precondition for the economic development and the strengthening of the Greek economy's competitiveness.

However, these changes must be included in overall and visible planning.

Because otherwise, the impression is created that in order for us to improve economic indicators, we are limiting ourselves to liquefying our national wealth," he said.

Athens News Agency

[11] Younger Greeks travel less to EU countries than counterparts, Eurobarometer state

Greeks may not travel so much, but data shows that recently they are becoming more and more interested in their rights as European citizens, while Greece is seventh regarding the number of people requesting information on labour issues through free tele phone lines or through the Internet.

According to the Eurobarometer, it appears that citizens in the Netherlands, Belgium, Luxembourg and Denmark feel that they are well-informed on events taking place in the EU, in contrast to the Germans, Portuguese, Swedes and Italians, who said they we re less informed.

Another interesting aspect regarding the purchase of products is that European citizens insist on purchasing their own products, with the Swedes coming first with 37 per cent.

Athens News Agency

[12] Royal couple to open archaeological exhibition

Athens News Agency

[13] Communist parties meet in Athens to review and regroup

The conference, which marks the 80th anniversary of the host, the Communist Party of Greece (KKE), and the 150th anniversary of the Communist Manifesto, was inaugurated by KKE Secretary-General Aleka Papariga.

In the opening session, Ms Papariga proposed a new international meeting of the communists next year to deal with the "multilateral agreement on investments" drafted by the Organisation for Economic Cooperation and Development (OECD).

She also called for the adoption of a joint statement endorsing the Communist Manifesto.

Ms Papariga further called for "mobilisation on current issues" such as "NATO's activities and the establishment of multinational rapid deployment forces", and issues of democracy and solidarity with outlawed communist parties. She also called for suport for Cuba and a special meeting "against NATO and its expansion".

"Solidarity towards the peoples falling victim to imperialistic agreements and plans, such as the Palestinians, the peoples of the former Yugoslavia, and the Cypriot people" was also stressed by Ms Papariga.

The delegates will also discuss the prospective publication of a joint periodical by the communist parties.

She said, however, that in order for cooperation among the communists to be feasible, a number of problems needed to be tackled first. The main obstacle, she noted, was the "serious ideological and political differences existing among the Communist part ies".

The sessions, which are being held in camera, will wind up Sunday afternoon.

Athens News Agency

[14] Minor incidents during teachers' protests

The protesters then marched to parliament, from where organisers said they would head for the education ministry building.

The parliament building was cordoned off by a strong police force but there were no incidents.

Athens News Agency

[15] Conference on prefectural governments

Declaring the opening of the conference, President Stephanopoulos said that "despite shortfalls due to economic factors, prefectural administration must improve the quality of services provided."

"With praise and control people show willingness, but with praise and sanctions they can become even more honest," he said.

"The institution will not be judged at the elections, but the confidence of citizens in the institution will be expressed," he added.

Addressing the conference, Prime Minister Costas Simitis announced the initiation of central independent resources for prefectural administration to enable the strengthening of the institution's economic independence, adding that the "problem is known, but we must resolve it in the framework of the conjuncture in cooperation with the economic ministries."

Mr. Simitis stressed the government's will to strengthen the institution of prefectural administration and carry out radical institutional changes in the direction of decentralisation.

He further said that the processing of a legislative bill on the transfer of other duties from the centre to regions and prefectural administration is at its final stage.

Interior, Public Administration and Decentralisation Minister Alekos Papadopoulos stressed support for taxation reforms for prefectural administration. He announced that a committee will be set up in the next few days on the metropolitan organisation of

Attica and Thessaloniki.

"They will be neither municipalities nor prefectures. Metropolitan administration will concern a different type of function organisation," he said.

ENAE President Evangelos Kouloumbis referred to the course of the institution from the time it was initiated four years ago until today, considering it successful.

Athens News Agency

[16] Albright cancels visit to Athens, Ankara

Ms Albright will arrive in Luxembourg on May 28 for the NATO foreign ministers' summit, where she is expected to meet with Foreign Minister Theodoros Pangalos and her Turkish counterpart Ismail Cem. A heavy schedule was cited as the reason for the cancellation.

Athens News Agency

[17] Karamanlis criticism of gov't agricultural policies

Mr. Karamanlis criticised the government for what he called its lack of support towards the agricultural sector, while saying that farmers are in dire straits. He added that Greece did not prepare during the "three years of the Simitis government."

In presenting ND policies, he said Greece's participation in a unified Europe must be accompanied by hard fought battles for Greek agricultural interests.

He added that the Agricultural Bank must be restructured in order to provide low-interest loans to farmers in efforts to lower the cost of products.

The ND leader expressed his certainty that ND will win the next election and will establish "a government for all Greeks regardless of their political affiliations."

Later in the day, Mr. Karamanlis visited the Dion Museum, which houses artifacts found in the nearby archaeological site.

It should be noted that during his Thursday visit to Katerini, Mr. Karamanlis said Prime Minister Costas Simitis' fiscal and economic policies have failed, citing the country's marginalisation within the European Union.

[18] Karamanlis letter to Parliament President

Mr. Karamanlis' letter also stated that government policies on education have created chaos in the sector.

Athens News Agency

[19] Kaklamanis at event on Greek public radio

He presented the contribution of ERA in the information sector, art and culture sectors over the years, but he noted the negative repercussions of state and government control.

Mr. Kaklamanis also mentioned problems created by the radio and television model of development employed in Greece during recent years.

Athens News Agency

[20] Vartholomeos' tour of Canada anticipated

"This tour will heighten Orthodox morale, promote Orthodoxy to the Canadian people and awaken the religious sentiment of the Orthodox faithful, while strengthening the bonds between them."

It should be noted that the Patriarch will visit six Canadian cities during his tour.

Athens News Agency

[21] Barclay's Bank target of second bomb attack

A makeshift incendiary device, consisting of seven gas cannisters and a container of gasoline, ignited shortly after midnight just inside the bank. Police said the attackers had apparently gained access to the entrance of the bank where the ATM is inst alled by using a bank cash card. According to eye witnesses, the attackers were two young men wearing black leather jackets and jeans who fled the scene on a motorbike.

Responsibility for the attack, for which no warning was given, was claimed in a telephone call to the Athens daily "Athinaiki".

The fire caused damage to the bank's entrance while the initial blast shattered the windows of two apartments above the ground-floor branch. Police said it was sheer coincidence that no passers-by were injured, as the bank is situated in a part of Kifi ssia which is busy even at night. The same branch was the target of a similar attack, claimed by the deadly "November 17" terrorist group on January 25, 1991.

Athens News Agency

[22] Another major bust of contraband cigarettes reported

Acting on a tip-off from the Ierissos coast guard station, police officers located a truck carrying 165,000 smuggled packets. Documents found on the driver, 29-year old Ioannis Atmatzidis, a resident of Thessaloniki, bore five customs seals from various cities in Europe, which leads police to suspect that they are on the tracks of a major smuggling ring.

A second truck managed to evade capture.

Loss of revenue to the state in the form of customs dues are estimated at around 94 million drachmas.

It is the third time in the last few days that large quantities of contraband cigarettes have been confiscated in northern Greece. Athens News Agency OA employees' representatives return from meeting with EU's Kinnock

Representativesofthe Union of Flight Attendants and Stewards (EISTH) returned from Brussels optimistic after EU Commissioner Neil Kinnock appeared prepared, in their words, to help Olympic Airways' restructuring if the loss-making national carrier's man agement and the government achieve four targets mandated some time ago and still not implemented.

The four targets include non-intervention by the state in the carrier's administration; no further subsidies; its operation on private sector criteria and application of EU guidelines.

Speakers said responsibilities of both the administration and the government were huge in that no operational plan has yet been submitted.

They further stressed the imperative need for the government to take a position immediately and clarify what will become of the company.

Athens News Agency

[23] EKA labour conference starts with criticism of gov't, unions' leadership

Protesting delegates consisted of several striking Ionian Bank employees and state-run utilities and enterprises' (DEKOs) labour representatives, who criticised the labour ministry's leadership as well as top labour unions' leadership.

The President of EKA Grigoris Felonis called the conference historic, since it is taking place during a time of intense questioning of workers' past conquests, as he noted.

On his part, Labour Minister Miltiades Papaioannou said "a minority cannot cancel out democracy and its institutions..."

Athens News Agency

[24] High-ranking meeting on digital TV issue

Addresses were made by Press Minister Dimitris Reppas and Transport and Communications Minister Tassos Mantelis.

Mr. Reppas said that the government is proceeding with establishing a clear legal and institutional framework before the start of relevant business activities defining principles, rules and criteria without restrictions and with equal terms towards ent erprises wishing to enter the sector.

He said that legislation will be supplemented and specialised and also incorporate EU law. He stressed that the principles of objective and pluralistic information, respect for citizens' private lives, healthy and unadulterated competition, entertainment and education for citizens, avoidance of illicit exploitation and the provision of equal opportunities to all interested must be served.

Mr. Reppas said that agencies desiring to activate themselves will be judged with specific criteria and preconditions concerning, among others, avoidance of concentration in the mass media sector and particularly digital TV, control of the origin of eco nomic means, securing economic viability and safeguarding the quality of programmes broadcast.

He said that the process by which they will be judged and utilised will be based on an open invitation for interest to be shown, coming from the press minister, while the National Radio-Television Council will be responsible for control and evaluation a nd will set out its views and the decision will be issued by the press minister.

The relevant legislative bill will be ready in June and will be discussed with political parties and agencies.

Athens News Agency

[25] Austria briefs government on Vienna's EU priorities

Dominating Austria's six-month term will be preparations for the EU's economic and monetary union.

Vienna also plans to focus on reducing unemployment in the 15-nation bloc and supporting small and medium-sized enterprises.

Mr. Farnleitner, who came to Athens as part of a tour of EU capitals to outline his country's plans, met his Greek counterpart, Yiannos Papantoniou, and Development Minister Vasso Papandreou.

Athens News Agency

[26] Greek stocks surge on privatisation, Hellenic Petroleum float

Traders said the market had regained confidence over the government's privatisation drive ahead of an expected flotation of state-owned Hellenic Petroleum shares in June.

The general index ended 1.26 percent higher at 2,606.48 points to show a net gain of 5.53 percent on the week.

Sector indices were mostly higher. Banks rose 1.17 percent, Insurance ended 0.61 percent up, Industrials increased 1.74 percent, Construction soared 3.89 percent, Miscellaneous jumped 3.98 percent, Holding rose 0.23 percent.

Investment and Leasing bucked the trend, dropping 0.49 and 0.36 percent respectively.

The parallel market index for small cap companies increased 0.93 percent, and the FTSE/ASE 20 index ended 0.96 percent higher at 1,560.69.

Trading was moderate to active with turnover at 73.1 billion drachmas.

Broadly, advancers led decliners by 197 to 57 with another 13 issues unchanged.

Rilken, Intracom, Fourlis, St George Mills, Nafpaktos Mills, Babyland, Bank of Athens, Remek and Lavipharm scored the biggest percentage gains hitting the day's 8.0 percent limit up.

General Warehouses, Ergas, Desmos, Sato, Macedonian Plastics, Balkan Export and Hadzioannou suffered the heaviest losses.

National Bank of Greece ended at 53,500 drachmas, Ergobank at 27,100, Alpha Credit Bank at 32,000, Delta Dairy at 4,670, Titan Cement at 26,100, Intracom at 19,333 and Hellenic Telecommunications Organisation at 9,000.

Athens News Agency

[27] Athens bourse rises in week, focusing on smaller cap firms

A successful bookbuilding offering by National Bank of Greece in domestic and foreign markets was translated as a vote of confidence in the outlook for the Greek market.

Analysts expect that the outcome of a government plan to sell state-owned Ionian Bank will determine the market's short-term course.

Workers at the bank, which is a subsidiary of Commercial Bank of Greece, are staging an indefinite strike to protest against the privatisation. Both banks are listed.

The general index ended the week 5.53 percent higher reflecting sharp gains in Miscellaneous, Industrials and Banks of 12.05, 6.70 and 6.10 percent respectively. The index was 66.92 percent higher from the beginning of the year.

Turnover totalled 299.4 billion drachmas to reach a daily average of 59.8 billion drachmas, down from 63.8 billion the previous week.

Athens News Agency

[28] Drachma gains on foreign currencies in week

The national currency was 1.63 percent higher against the US dollar on the week.

It strengthened by 1.69 percent against the pound sterling and by 0.69 percent and 0.82 percent respectively against the DMark and the Ecu.

Since its entry into the European Union's exchange rate mechanism on March 14 and accompanying 13.8 percent devaluation, the drachma has gained 5.28 percent against the Ecu and 4.77 percent against the German currency.

The drachma stands 8.43 percent and 9.85 percent higher against the US dollar and the pound sterling respectively.

Athens News Agency

[29] German business leaders praise Greece's EMU groundwork

Hans-Olaf Henkel, chairman of the Federation of German Industry, told a meeting of the Federation of Greek Industry in Athens that the drachma's entry into the European Union's exchange rate mechanism was a decisive step towards participation in EMU.

Restructuring in the public sector, speedier privatisation and fiscal stability were the main factors that would affect Greece's entry into the euro, the single European currency, Mr. Henkel said.

Greece held a strategic position in western Europe and was playing a major role in developing economic relations in the Mediterranean region, he said.

Turning to the euro, Mr. Henkel underlined that a single European currency would rank equal to the US dollar in international markets.

He underlined that an EU expansion eastwards, including Cyprus, would help European industry by increasing its consumer base to 470 million people.

Markus Riess, managing director of Asset Management Company, a subsidiary of German insurer Allianz, told a mutual funds conference in Athens that the Greek government's success in containing inflation, reducing interest rates and cutting fiscal deficits was paving the way for swifter economic growth.

In turn, this would lead to large investment inflows in the Greek market, Mr. Riess said.

Athens News Agency

[30] Thessaloniki commuters caught in transport turmoil

Many commuters were forced to go to work by car, adding to congestion on the roads, since taxis were unable to meet the demand. Dozens of people stood at bus stops all over the city waiting for transport that failed to arrive.

Further morning and evening work stoppages have been announced for Tuesday, Wednesday and Friday next week.

Athens News Agency

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