Athens News Agency: Daily News Bulletin in English, 98-12-12

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

CONTENTS

[01] EU partners disagree on `Agenda 2000`, agree on employment policy

[02] Holbrooke, Miller to meet with Greek leadership over Cyprus issue

[03] Turkey`s status vis-a-vis EU unchanged, Simitis says

[04] Pangalos-Fischer meeting on Monday

[05] Robles: Cyprus solution, human rights necessary for Turkey's EU vocation

[06] Karamanlis says employment at the heart of EU's social cohesion

[07] Entrepreneurs from both communities on Cyprus, Greece, Turkey meet

[08] Multinational NATO force destined for FYROM begins disembarking in Thessaloniki

[09] ANA goes 'Windows', expands on-line services

[10] Home News

[11] Economic News

[12] Consumers' confidence falls in Greece for Oct., rises in EU

[13] Athens foreign exchange

[01] EU partners disagree on `Agenda 2000`, agree on employment policy

VIENNA, 12/12/1998 (ANA - S. Liarellis/M. Spinthourakis)

"There was no coincidence of views between the 15 on the issue of the EU's fiscal prospects during today's session and the issue will remain open until March, 1999 when, during the extraordinary summit, a definitive compromise solution must be found," h e said.

Mr. Simitis said Greece, Spain and Portugal clarified that the sole official proposal which can constitute a basis for negotiations is the Commission's report, "Agenda 2000",which anticipates an increase in EU expenditures at the level of 1.27 per cent of the EU's GDP.

Mr. Simitis said that the three countries from the EU's poorer south are opposed to northern EU countries' proposals for a freeze on EU expenditures at their present levels, as well as to proposals for a decrease in the reserves of EU budgets, adding th at the EU must adhere to the principle of EU solidarity for economically weaker regions.

He disclosed that he met with his counterparts from Spain and Portugal, Jose Maria Aznar and Antonio Guteries, respectively, in the fra-mework of the three countries' efforts to determine a common strategy on the issue of the EU's fiscal prospects. He a dded that the three countries agree that whatever compromise solution is agreed will have to have an overall character, resolve all problems in light of enlargement and leave no issues pending.

Replying to press questions, Mr. Simitis expressed optimism over the outcome of the so-called Santer package. He said that in the case of the EU's fiscal prospects as well, he is certain that the final settlements will secure EU funding and resources wh ich are necessary for Greece.

Referring to the other issue included in the summit, employment, Mr. Simitis said the "15" agree in general on the need of enacting an agreement for combatting unemployment and the precise implementation of guidelines which they agreed on during the Lux embourg summit.

Mr. Simitis said that the fact that "15" now agree that the responsibility for the EU's economic and monetary policy will lie jointly with the finance ministers and the Central bank Governors (that is to say not the central banks alone) allows for great er flexibility in the exercising of the EU member-states' employment policy.

He further said that the "15" assessed the national plans of action for employment, but added that each country must maintain, on the basis of its individualities, the possibility of exercising its own policy on combatting unemployment.

Mr. Simitis also referred to the discussion which took place on the issue of harmonising the tax policies of member-states, saying that any effort of creating a common tax policy for member-states would be pointless at this stage.

However, he said that measures must be taken against illicit tax competition between member-states and against social "dumping", adding that discussions on these issues will continue, as well as on the issue of elasticity in the market and working time.

Lastly, Mr. Simitis said that the "15" also discussed a proposal on European defence which, as he said, was enthusiastically accepted. He said that this proposal has a special dynamism and that discussions on its future, as well as on the future of rela tions with the West European Union (WEU), will continue within the EU.

In the morning session, Mr. Simitis noted that unemployment was the biggest problem facing both Greece and Europe.

National Economy Minister Yiannos Papantoniou told reporters that Mr. Simitis had asked the summit to send a strong message that the EU was determined to carry out policies on tackling joblessness.

The prime minister outlined the problem of unemployment in Greece and features of the domestic labour market that differed from other EU countries.

The features included movement of the rural population to urban centres, and a low percentage of women in the labour market at 40 per cent against the EU average of 50 per cent, despite a sharp domestic increase in recent years.

Another characteristic was the high number of undocumented workers living in Greece for financial reasons, which, as a percentage of the workforce, was comparable to Germany in the 1950s and 1960s.

Mr. Simitis noted that in addition to 250 billion drachmas allocated from EU funds to combat joblessness, the government would spend a further 500 billion drachmas in 1999.

The premier expressed Greece's full support for the signing of an Employment Pact to supplement the Stability Pact.

He told the summit that by the end of 1998 Greece would have satisfied the criteria for entry into European economic and monetary union except for inflation, the target for which would be met by the end of 1999.

The country would be ready to join EMU on January 1, 2001, the government's target date, Mr. Simitis said.

Finally, the Greek premier met with French President Jacques Chirac and British Prime Minister Tony Blair on the sidelines of the summit.

Mr.Simitis said he talked with Mr. Chirac on Turkey's relations with the EU as well as the financial protocol.

Athens News Agency

[02] Holbrooke, Miller to meet with Greek leadership over Cyprus issue

Athens, 12/12/1998 (ANA)

Although both sides are maintaining complete secrecy on the agenda of the talks, observers consider certain they will involve all aspects of the protracted problem, including the planned installation of Russian-made S- 300 missiles on the island, something vehemently opposed Turkey.

According to sources, the US intends to undertake a new initative with a view to reducing tension on the island and to a resumption of intercommunal talks.

Deputy Foreign Minister Yiannos Kranidiotis, who is to participate in the talks with the US officials, along with FM Theodoros Pangalos and Defence Minister Akis Tsohatzopoulos, confirmed Friday night that Athens had already asked for the assumption of such an international initiative.

"We are taking action towards the assumption of an international initiative in a United Nations, or other, framework, with a view to the island's demilitarisation and aga-inst the excessive presence of military forces," he said.

Mr. Kranidiotis also reiterated the terms and conditions set by Cypriot President Glafcos Clerides for a possible concellation of the installation of the missiles.

Athens News Agency

[03] Turkey`s status vis-a-vis EU unchanged, Simitis says

VIENNA, 12/12/1998 (ANA - M. Spinthourakis/S. Liarellis)

He added said that the view that prevailed during the dinner discussion was that decisions reached at the last EU summit in Cardiff regarding Turkey should be fully implemented.

The Greek PM also noted that Germany informed EU leaders at the summit that it did not intend to convene a conference of candidate-countries with EU member-states during its presidency in the first half of 1999.

Athens News Agency

[04] Pangalos-Fischer meeting on Monday

Athens, 12/12/1998 (ANA)

Mr. Fischer will be visiting Greece as part of a tour of European capitals in view of Germany's assumption of the rotating European Union presidency in January.

The meeting will take place at 8:30 a.m.

Athens News Agency

[05] Robles: Cyprus solution, human rights necessary for Turkey's EU vocation

VIENNA, 12/12/1998 (ANA - D. Dimitrakoudis/CNA)

Replying to questions during a press conference on the first day of the European Council Vienna summit, Mr. Robles expressed Parliament's desire that Turkey progress towards fulfilling Copenhagen criteria.

Mr. Robles made special reference to the need for respect of human rights and contribution towards a solution of the Cyprus problem as two of the criteria Turkey has to meet.

"We want progress to be made rapidly so that negotiations can proceed," the European Parliament president said, pointing out, however, that "this does not depend on us, but on Turkey."

Mr. Robles stressed "the rules for joining the club are what they are" and countries wishing to become members should see to them.

Invited to comment on recent tensions in relations between Turkey and Italy following Ankara's request for the extradition of Kurdish rebel leader Abudllah Ocalan, arrested in Rome, Mr. Robles reaffirmed the European Parliament's decision to hold a conf erence on the Kurdish issue.

"The parliament does not change its mind every fortnight, especially if there are no new developments to cause such changes," he added.

Mr. Robles said that "the Ocalan case, unfortunately, only complicates an already difficult issue."

Athens News Agency

[06] Karamanlis says employment at the heart of EU's social cohesion

VIENNA, 12/12/1998 (ANA)

The ND leader spoke after the end of the European Peoples' Party conference here.

"Two major issues were discussed at this summit meeting of the European Peoples' Party, those of employment and enlargement. On the issue of employment, I had once again, the opportunity to stress that it is at the heart of social cohesion, which must r eceive serious attention of all European countries, and indeed, particularly in the direction of strengthening small and mid-sized enterprises, which are primarily capable of creating new jobs," he said.

He also stressed that there could be no enlargement with keeping a lid on the Union's budget.

"Thoughts of a reduction are unacceptable and out of time and place. Not only do they rule out enlargement, but they also create a major problem to those countries, including Greece, which are trying to attain real convergence and not simply nominal ind icators," he said.

Referring to Cyprus' accession to the EU, he said ND's support is always a given, and that the island republic's candidacy should be considered on the same criteria as the others.

Athens News Agency

[07] Entrepreneurs from both communities on Cyprus, Greece, Turkey meet

ISTANBUL, 12/12/1998 (ANA - A. Kourkoulas)

US ambassador to the UN Richard Holbrooke and the US State Department's special coordinator for Cyprus, Thomas Miller, are expected to arrive in Istanbul today to attend the meeting. It is jointly organised by the Oslo Peace Institute and New York-based

Columbia University. The meeting is a continuation of previous meetings held in Oslo and Brussels last July and in November 1997, respectively.

Ankara is reportedly facing this initiative with reservations and puts forward the view that a political problem cannot be handled through the processes adopted by the initiative of the Oslo Peace Institute and the Columbia University. A senior Turkish Foreign Ministry official told the newspaper Turkish Daily News that the meeting is due to the Americans' insistence.

"They attribute great importance to this initiative and believe that it can help the Cyprus issue," the Turkish official reportedly said, adding that "we do not believe that it will have any result but we agreed for it to take place as a goodwill gestur e."

Mr. Holbrooke and Mr. Miller are not expected to have meetings with Turkish officials, while on Monday they will leave for Athens.

Athens News Agency

[08] Multinational NATO force destined for FYROM begins disembarking in Thessaloniki

Athens, 12/12/1998 (ANA)

According to NATO planners, the multinational force will supposedly provide protection, if necessary, to international observers monitoring the peace accord in the neighbouring Serbian province of Kosovo. The vehicles, numbering several dozen, are to r each the NATO-designated base at Koumanovo, near FYROM's border with Yugoslavia, by road. Sources said more NATO ships with armoured vehicles and other military equipment are expected to reach the port of Thessaloniki today. The allied force consi sts of about 1,600 men, of which 750 are French, 250 German, and the rest Italian and Dutch.

Athens News Agency

[09] ANA goes 'Windows', expands on-line services

Athens, 12/12/1998 (ANA)

ANA has already integrated most computer applications within a "'Windows' environment", thereby upgrading both the speed and quality of on-line services, especially to mass media outlets in Greece's provinces. The upgrading took place in the framework of the Interreg II programme, while the ANA is now linked with Nicosia and Beirut through Irakleio.

"The ANA's target is to have the new system gradually expanded to the rest of the country as well in the framework of the agency's continuous upgrading of services," ANA General Director Andreas Christodoulides said. ANA's news roster is now renewed ev ery 40 seconds, while users have the possibility of choosing news classified into political, economic, judicial, crime, agricultural and items concerning health, education, the armed forces, European Union, technology, labour, natural disasters and variou s other issues. International, Cyprus and sports news are available separately. Services provided by the ANA are enriched with photo coverage, photographic archives, press releases, an on-line economic bulletin, the English and French bulletins, data bank s and graphics. The new system was entirely planned and implemented by the agency's infomatics department. Satellite transmission of the agency's services to its subscribers is also being planned for the end of 1999.

Athens News Agency

[10] Home News

Athens, 12/12/1998 (ANA)

Their union demands the additional hiring of 95 employees.

Athens News Agency

[11] Economic News

Athens, 12/12/1998 (ANA)

The general index ended 3.00 percent lower at 2,460.72 points. Trade was light with turnover falling to 56.2 billion drachmas from 66.5 billion drachmas a day earlier. Volume was 15,430,000 shares.

The FTSE/ASE-20 blue chip index slumped 3.09 percent to finish at 1,523.32 points.

The parallel market for smaller cap stocks closed 3.03 percent lower.

Sector indices were lower across the board.

Banks nosedived 3.65 percent, Leasing plunged 3.29 percent, Insurance slumped 2.25 percent, Investment shed 1.80 percent, Construction lost 1.72 percent, Industrials fell 2.97 percent, Miscellaneous dropped 2.68 percent, and Holding shed 2.09 percent.

Of 266 shares traded declines led advances at 186 to 69 with 11 unchanged.

The most heavily traded stocks were Panafon, Hellenic Telecommunications Organisation, Viosol and Eskimo.

Scoring the highest percentage gains at or near the daily 8.0 percent upper volatility limit were Keranis, Kallinis, Esha, Mouzakis, Dimitriadis, Viosol, Tasoglou and Emborikos Desmos.

Posting the biggest percentage losses were Kyriakoulis, Levenderis, Hippotour, Thessaliki, Ideal, General Bank of Greece, Thrace Plastics, Sigalas, Commercial Invest and Kekrops.

National Bank of Greece ended at 53,510 drachmas, Ergobank at 27,285, Alpha Credit Bank at 26,850, Ionian Bank at 13,000, Hellenic Telecommunications Organisation at 6,340, Delta Dairy at 3,385, Intracom at 12,160, Titan Cement at 19,770, Hellenic Petro leum at 2,180, Minoan Lines at 6,150, and Panafon at 6,465 drachmas.

Bond prices jump in brisk trade: Bond prices gained up to 2.0 percentage points in the secondary market yesterday fuelled mainly by aggressive buying from abroad, which partly explains the drachma's continuing rise.

Turnover was high for the season with electronic trade at 60 billion drachmas despite the noticeable absence of domestic mutual funds in the market due to accounting technicalities coupled with high prices.

Foreign buyers are active in the market due to high yields and the likelihood of the country joining European economic and monetary union by January 1, 2001, the government's target date, traders said.

The 15-year bond was trading at 103.20, the 10-year bond at 109.10, and the seven-year bond at 105.35.

Short-term rates in the money market dropped, trying to consoldidate at lower levels.

National Bank of Greece quoted 11.70 percent for overnight funds and 12.00 percent for one-month funds.

The foreign currency market showed a demand for drachmas after the central bank's daily fix, possibly stemming from institutional investors in the United States, traders said.

The Bank of Greece bought 40 million marks at the fix.

The mark was 167.650 drachmas at the fix, later dropping to 167.520, the Ecu 328.930 drachmas, and the dollar 277.210 drachmas.

EFG Eurobank to merge with Bank of Athens, enter bourse: EFG Eurobank is to merge with Bank of Athens following its purchase of the majority of the latter's stock six months ago, enabling listing of the new bank to emerge on the Athens Stock Exchange.

The board of the two banks decided yesterday that EFG Eurobank would be absorbed into Bank of Athens on the basis of balance sheet data on July 31, 1998.

The plan requires the approval of both banks' shareholders, who are expected to meet in February.

The new bank to emerge - EFG Eurobank SA - will have a share capital of 55 billion drachmas.

Shareholders of both existing banks will automatically become shareholders of the new bank.

After the shareholders' meetings and approval by the authorities, the new bank's stock will be listed on the bourse.

Athens Bourse driven by rate cuts last week: The Athens Stock Exchange was driven this week by expectations of central and commercial bank rate cuts, which drove up share prices for one session when players discounted the move, only to drop when the reductions materialised, traders said yesterday.

The general index slipped 0.34 percent, or 8.35 points on the week to end at 2,460.72 points against 2,469.07 points a week earlier.

The week's turnover was 381.191 billion drachmas to post a daily average of 76.2 billion drachmas, down from 89.6 billion drachmas a week earlier.

The bourse's investment sector posted the highest gains at 3.27 percent, and Leasing the highest losses, shedding 5.38 percent.

On Monday, the index gained 4.12 percent anticipating rate cuts that were announced on Wednesday, when profit-takers muscled in to scoop up their short-term gains.

Despite a healthy economic climate at home with consumer price inflation and interest rates falling, the climate abroad is less robust, to some extent holding back the Greek market.

Alico Eurobank forecast that domestic inflation would fall to 3.3 percent at the end of the first quarter of 1999, and yield on the 12-month treasury bill would drop to 9.0 percent.

In addition, an improvement in the macro-economic climate coupled with progress in privatisation would take the Athens bourse's general index to 3, 000 points in the first half of 1999, Alico Eurobank said in a report on the economy.

Finally, the domestic bond market has seen a sizeable inflow of funds from abroad, some of which are expected to end up in the Greek equities market when markets normalise on the global scene.

From the start of the year the index has gained 66.3 percent. It stands 12.91 percent down on its all-time high of 2,825.52 points on July 21.

More banks join the pack in interest rate cuts: More banks announced interest rate cuts yesterday in a chain reaction stemming from reductions in key rates by the central bank last week. The new rates are effective on Monday.

Bank of Piraeus lowered its savings deposit rate by 0.5 percentage point to 8.5 percent. It had already cut its loan rates on November 2 by 1.0-2.0 percentage points.

Ionian Bank announced reductions of up to 2.5 percentage points for loan rates. Its savings deposit rate is to fall 25 basis points to 8.5 percent.

Following suit were Agricultural Bank of Greece and Macedonia-Thrace Bank, whose savings deposit rate will drop to 8.5 percent from 8.75 percent.

General Bank of Greece is due to announce rate cuts on Monday.

Greece's Citibank Shipping to merge with parent company: Citibank Shipping SA is to merge with Citibank SA of Greece, its parent company, in order to aid an administrative restructuring.

The move will simplify procedures, saving customers time and money, the parent company said in a statement yesterday.

The shipping department will remain in the port of Piraeus in the same offices, offering the same services, the statement said.

Hellenic Sugar Industry posts Dr 3.7 bn losses: Listed Hellenic Sugar Industry posted pre-tax losses of 3.7 billion drachmas in its July 1997- June 1998 financial year, with 1999 expected to be troubled due to the repercussions of adverse weather, company officials told a shareholders' meeting yesterday .

Officials of the Thessaloniki-based company said that sugar imports would be ordered to order to meet domestic demand. Agricultural Bank of Greece holds 70 percent of the company's stock.

Its governor, Petros Lambrou, told the meeting that if the firm's revitalisation failed to bear fruit, a stragetic investor would be sought to take over management.

Athens News Agency

[12] Consumers' confidence falls in Greece for Oct., rises in EU

BRUSSELS, 12/12/1998 (ANA - G. Daratos)

The confidence index in Greek industry also took a turn for the worse in October in relation to September (from +5 to -2), along with the confidence index in the building sector (from +4 to +2).

The index of confidence among consumers fell from -27 in September to -30 in October, while the index for the general economic climate also fell from 100.1 to 99.5.

The competitiveness of Greek industrial products in the domestic market also appeared lower in October (down to +9 from +18), but also in other EU markets (+5 from +7), and even more in third countries (+3 from +8).

Athens News Agency

[13] Athens foreign exchange

Athens, 12/12/1998 (ANA)

Banknotes        Buying       Selling
US Dollar        274.992      281.368
Can.Dollar       178.362      182.497
Australian Dlr   171.586      175.565
Pound Sterling   459.018      469.661
Irish Punt       413.267      422.849
Pound Cyprus     560.877      573.881
Pound Malta      681.879      710.291
Turkish pound (100) 0.080       0.083
French franc      49.602       50.752
Swiss franc      206.242      211.024
Belgian franc      8.064        8.251
German Mark      166.309      170.165
Finnish Mark      54.709       55.977
Dutch Guilder    147.600       151.022
Danish Kr.        43.704        44.717
Swedish Kr.       33.940        34.727
Norwegian Kr.     35.891        36.723
Austrian Sh.      23.647        24.196
Italian lira (100) 16.797       17.186
Yen (100)        233.705       239.124
Spanish Peseta     1.955         2.001
Port. Escudo       1.623         1.661

European Currency Unit Ecu Buying: 326.299 Selling: 333.864

Gold Sovereign (rates in Drachmas) Old mint: 19050 (b), Elizabeth up to 1973: 19610 (b), Elizabeth of 1974 and onward mints: 19610 (b), 21290 (s)

GOLD (in dollars per ounce) London: 290.65 New York: 290.60

Foreign Exchange   Buying       Selling
New York           274.992      281.368
Montreal           178.362      182.497
Sydney             171.586      175.565
London             459.018      469.661
Dublin             413.267      422.849
Nicosia            560.877      573.881
Paris               49.602       50.752
Zurich             206.242      211.024
Brussels             8.064        8.251
Frankfurt          166.309      170.165
Helsinki            54.709       55.977
Amsterdam          147.600      151.022
Copenhagen          43.704       44.717
Stockholm           33.940       34.727
Oslo                35.891       36.723
Vienna              23.647       24.196
Milan               16.797       17.186
Tokyo              233.705      239.124
Madrid               1.955        2.001
Lisbon               1.623        1.661

Athens News Agency

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