Athens News Agency: Daily News Bulletin in English, 00-03-08

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

CONTENTS

[01] Inflation rises to 2.9 pct in February Greece definitely fulfills EMU criteria, Papantoniou says

[02] ND leader Karamanlis accuses government over policies, pre-election practices

[03] Premier issues first pre-election message on Internet

[04] PASOK sees election win despite "close" contest

[05] Election visits, rallies at the forefront

[06] Development minister proposes that the development of Thessaloniki be included in candidates' election dialogue

[07] Former PASOK minister Manolis Dretakis an election candidate for the Coalition of the Left and Progress

[08] Premier holds talks with prefectural union delegation

[09] Albanian foreign ministry denies press reports over alleged 'visa trade'

[10] Deputy finance minister outlines 2001 budget aims

[11] Greece's entry to EMU unaffected by petrol price increase

[12] Greek stocks plunge, hit by inflation fears

[13] Investment Bank of Greece begins operation on Wednesday

[14] Barnier notes rise in Athens metro budget since 1991

[15] Press reports out of Sofia again focus on BTC negotiations

[16] Social Security Foundation chooses advisers for bond issue

[17] British Hellenic Chamber to hold e-commerce workshop

[18] Messages on Women's Day

[19] Aegean University delegation visited Izmir and held talks with local Turkish university officials

[20] Celebrations held marking anniversary of Dodecannese islands' union with Greece

[21] Networking of Greeks abroad, philhellenes

[22] Turkish AKUT emergency rescue squad members due Wednesday

[23] Greek Holy Synod condemns book

[24] Visiting US envoy says now is 'best time' for Cyprus settlement

[01] Inflation rises to 2.9 pct in February Greece definitely fulfills EMU criteria, Papantoniou says

Athens, 08/03/2000 (ANA)

The February rise did not justify the government's expectations although the figure was much lower compared with the previous years.

Annual inflation was 3.7 percent in February 1999 and 4.3 percent in February 1998.

National Economy and Finance Minister, Yiannos Papantoniou, speaking to reporters after the release of the inflation data said that despite the unpleasant developments in the CPI course in February, Greece was definitely fulfilling the EMU convergence criteria.

The fulfillment of all EMU entry criteria by Greece was not only a political and economic success but it was also ensuring national interests, Papantoniou said.

Papantoniou noted that Greece was entering the euro with no political conditions or commitments.

Despite an unpleasant development in international oil prices, affecting all European states, the February inflation figure embodied a vital economic fact: that Greece easily fulfilled the fifth EMU convergence criterion in February, he said.

"It is an historic moment," Papantoniou stressed, "completing a six-year cycle of persistent and hard efforts by the Greek people with the aim of economic restructuring."

The road is now open to submit our entry application on Thursday, 9 March, he said.

Greece is expected to submit its application for entry into the Economic and Monetary Union on Thursday. The application will be considered at the end of June during the Lisbon EU summit. Entrance into the eurozone will take effect as of January 1, 2001.

Greece's harmonized consumer price index (used to measure the fulfillment of the EMU convergence criterion) was running at 2.1 percent in February, government officials said on Tuesday.

The government believes that harmonized inflation figures will rise in the European Union in February.

The National Statistics Service will publish its official figures on March 20-21.

Nikos Karavitis, the NSS secretary-general, presenting the February inflation figures said that the core consumer price index fell in the month, a signal of a declining trend in inflation.

The CPI rose 2.9 percent in February compared with the same month last year. It was 0.2 percent lower from January.

The monthly fall was a result of a 3.1 percent decline in clothing-footwear, a 0.6 percent drop in domestic appliances and services and 5.8 percent fall in communications. Food and beverages and transports, however, rose 1.5 pct and 1.3 percent respectively in February.

[02] ND leader Karamanlis accuses government over policies, pre-election practices

Athens, 08/03/2000 (ANA)

During his speech at a ND women's rally, in light of Wednesday's international celebration of Women's Day, Karamanlis accused the government of attempting to avoid discussion of citizens' everyday problems by resorting to petty politics.

He said that the premier has been promising hirings and benefits, adding that when the premier was making his decisions he did not listen to anyone and now he demands subjugation and silence on the part of society, until the end of his term.

He called on the premier to present his accomplishments and to abandon practices of the past.

Speaking of press and media reports on the private life of politicians he said, "it is obvious that some people are hiding behind these latest efforts and the culprits are revealed by the ways of their choices. Pay no attention to them.

"It's their problem, if they want to be represented by the yellow-press style and irresponsibility. They will not succeed in their attempt to demote politics for the needs of petty politics, since the citizens of this country are much more mature and much freer than the propagandists of the establishment think," Karamanlis said.

He also criticized government policies in health, education, security and employment.

[03] Premier issues first pre-election message on Internet

Athens, 08/03/2000 (ANA)

He also noted that these elections will generate the government, which will lead the country through the first years of the new millennium, in a "stage" fraught with challenges, possibilities and dangers.

Over the past four years the government has realized three commitments to the people, the country's accession to the Economic Monetary Union, the "building" of a strong Greece and the country's modernization, the message read.

It added that this effort should be completed, reaching for higher goals, faster development, prosperity and solidarity.

[04] PASOK sees election win despite "close" contest

Athens, 08/03/2000 (ANA)

"PASOK is optimistic, counting on the government's work. Opinion polls are very good for PASOK, but the polling booth is even better," he said.

Party Secretary Costas Skandalidis said the rallying of party supporters was "phenomenal" and that the main opposition New Democracy was still unsuccessfully seeking to forge a new profile and ideas.

"We have a development plan, work to show, faith and confidence in the judgement of the people... We are asking for a positive vote for PASOK, not a negative one for ND," he said.

National Economy Minister Yiannos Papantoniou said PASOK had the edge over its rival but a strong fight was required to ensure victory.

"PASOK has a marginal lead which, I think, ensures the prospect of victory, but things are difficult and the fight will be hard," he said.

[05] Election visits, rallies at the forefront

Athens, 08/03/2000 (ANA)

On Tuesday, meanwhile, Greek Prime Minister and ruling PASOK president Costas Simitis met with Interior Minister Vasso Papandreou and a delegation of prefectural officials. On Wednesday, he will speak at a PASOK women's rally and concert in Athens, in light of the international women's day.

On his part, main opposition New Democracy leader Costas Karamanlis will address a gathering of female ND supporters at an Athens arena on Tuesday evening.

Finally, Coalition of the Left president Nikos Constantopoulos visited the central offices of Greece Social Security Foundation (IKA) in Athens on Tuesday, where he discussed the issue of social security funds, whereas Democratic Social Movement (DHKKI) leader Dimitris Tsovolas was scheduled to address a gathering at a downtown Athens hotel in the evening.

[06] Development minister proposes that the development of Thessaloniki be included in candidates' election dialogue

Athens, 08/03/2000 (ANA)

Venizelos, who made his proposal during a press conference, said that calling on all the parties concerned to remind of their contribution to shaping Thessaloniki's present image is "an element of maturity and genuineness of political and election dialogue."

[07] Former PASOK minister Manolis Dretakis an election candidate for the Coalition of the Left and Progress

Athens, 08/03/2000 (ANA)

[08] Premier holds talks with prefectural union delegation

Athens, 08/03/2000 (ANA)

Simitis committed himself on constitutionally safeguarding the institution of prefectural administration in the framework of the constitution's revision.

He spoke to prefects of the government's sensitivity towards the institution and the consolidation of a conception of a "state headquarters' which has started to shape a radically different picture in relations between the state and local administration.

Simitis said problems which appeared in cases of conflict of interests with the implementation of the new institutional framework render the promotion of adjustments through a systematic dialogue necessary.

Katrivanos delivered a memorandum to the premier containing the prefects' demands which include the constitutional consolidation of the institution and the restitution of duties removed by a Council of State decision.

Katrivanos and ENAE's Executive Committee will visit President Kostis Stephanopoulos on Wednesday.

[09] Albanian foreign ministry denies press reports over alleged 'visa trade'

TIRANA, 08/03/2000 (ANA)

The Albanian ministry categorically denied the reports, while adding that Tirana considers the articles as "serving certain expediencies amid a heated election campaign in Greece...

"It is the duty and responsibility of the foreign ministry's legal and consular affairs bureau to support Albanian citizens when they require visas for political, academic, trade and health reasons," an announcement issued in Tirana read, adding that the ministry not only intervenes with the Greek embassy, but also with the Italian and other EU states' embassies.

The most prominent Albanian political figure press reports have connected to the alleged "visa trade", parliament president Skander Kinousi, was quoted by a Tirana newspaper on Tuesday as saying that visas and passport stamps "granted on the side" are illegal, not official requests.

[10] Deputy finance minister outlines 2001 budget aims

Athens, 08/03/2000 (ANA)

He said that the second aim of the budget will be to boost the economy's development up to 4 per cent, while at the same time maintaining is stability.

Christodoulakis concluded outlining the aims of the budget, by announcing the continuation of structural changes of the economy, via public offers stock in utilities and government-owned enterprises, the merger of agencies and the upgrading of the public sector.

The aims will be achieved via cuts in spending, minimizing of new hiring and development of non-governmental funding sources.

[11] Greece's entry to EMU unaffected by petrol price increase

Athens, 08/03/2000 (ANA)

"The predictions on the international oil prices are good. In any case Greece's entry into the EMU was not endangered," Venizelos said, noting "we achieved our aim and we are entering the EMU without reservations."

"No problems were created for the consumers as a result of mergers," he noted, adding that "the mechanisms controlling competition are activated only in part".

He said that "electricity prices will not be increased as a result of the electric energy market deregulation."

Finally, he stressed that the legislation regulating development needs to be amended, so as to boost private tourist infrastructure investments, adding that the basic policy aim was to assist the market forces, which should always have the initiative.

[12] Greek stocks plunge, hit by inflation fears

Athens, 08/03/2000 (ANA)

Dealers said news of a rise in the February inflation rate to 2.9 percent combined with rising international oil prices depressed sentiment in the market.

Shares in the Construction and smaller capitalization sectors collapsed.

The general index ended at 4,941.30 points, off 3.12 percent. The FTSE/ASE 20 index for blue chip and heavy traded stocks ended at 2,761.39 points, off 2.25 percent while the FTSE/ASE 40 index plunged 5.83 percent to 751.38 points.

Turnover was a moderate 232.08 billion drachmas.

Sector indices ended as follows: Banks: 9,319.78

-1.78% Leasing: 1,113.91 -2.92% Insurance: 3,279.44 -0.39% Investment: 2,384.15 -3.38% Construction: 2,367.83 -9.49% Industrials: 2,957.67

-3.32% Miscellaneous: 5,741.17 -6.94% Holding: 5,098.17 -4.60%

The parallel market index for smaller capitalization stocks ended at 1,072.07 points, off 9.21 percent.

Broadly, decliners led advancers by 329 to 15 with only one issue unchanged.

Kathimerini Newspaper saw its shares rise 43.97 percent on the first trading day in the market. Interinvest, Lyberis Publications, Athens Water and Aspis Insurance (p) scored big percentage gains.

Athinea, Edrasis, Elfico, Desmos, Ergas, Ellatex, Lanacam, Macedonian Spinning, Microland and Remek were among a large number of shares that ended at the day's 10.0 percent limit down.

Hellenic Petroleum was the most heavily traded stock.

Leading shares' closing prices (in Drs): Alpha Credit: 24,600 National Bank: 23,100 Commercial Bank: 21,980 Ergobank: 9,150 Eurobank: 12,050 Heracles Cement: 8,530 Hellenic Petroleum: 4,715 Intracom: 16,600 Minoan Lines: 7,400 Hellenic Telecoms: 10,740 Panafon: 6,035 Titan Cement: 15,400

Equity futures on the Athens Derivatives Exchange finished lower: Equity futures on the Athens Derivatives Exchange finished lower on Tuesday in line with the stock indices on which they are based.

On the Athens bourse, the FTSE/ASE 20 index ended 2.24 percent down; and the FTSE/ASE MID 40 index closed 5.8 percent lower.

Turnover rose slightly to 8.7 billion drachmas from 8.0 billion drachmas a day earlier and 6.3 billion drachmas on Friday.

A total of 1,180 contracts were traded on the FTSE/ASE 20, showing turnover of 6.6 billion drachmas.

The contracts ended as follows: expiring March at 2,804; expiring April at 2,857; expiring May at 2,870; and expiring June at 2,880.

Futures traded on the FTSE/ASE MID 40 numbered 688, with turnover at 2.1 billion drachmas.

Contracts closed as follows: expiring March at 765; and expiring April at 790.

Bank, broker rankings for Athens derivatives trade: Ranking top for the number of FTSE/ASE 20 equity futures traded in February on the Athens Derivatives Exchange was Sigma Securities with a 19.81 percent share of the market.

At the top of the tree for equity futures on the FTSE/ASE 40 was Hellenic Securities with 18.67 percent of the market.

Leading in futures contracts on the benchmark 10-year bond was National Bank of Greece, holding 27.55 percent of the market.

Bonds fall in sell-oriented trade: Bonds in the domestic secondary market dropped on Tuesday in sell-oriented trade.

The slump appeared to be due to a heavily subscribed auction of 20-year bonds on the same day coupled with low liquidity in the market, which led to a sell-off in paper to raise cash, dealers said.

The Greek benchmark 10-year bond showed a yield of 6.32 percent from 6.33 percent a day earlier and around 6.32 percent in the previous two trading days.

The paper's yield spread over German bunds was 89 basis points from 88 basis points for three straight sessions and 91-92 basis points on Wednesday.

Trade through the central bank's electronic system totalled 60 billion drachmas from 64 billion drachmas a day earlier and around 80 billion drachmas in the previous two sessions.

Sell orders accounted for 58 billion drachmas of Tuesday's turnover.

Warburg Dillon said in a market report for customers that Greek 15- and 20-year bonds were attractive buys.

US dollar's rise dominates drachma trade: The drachma slumped against the US dollar on Tuesday in line with the greenback's rise in world markets. The national currency gained slightly on the euro.

At the central bank's daily fixing, the euro was set at 333.570 drachmas from 333.690 drachmas a session earlier and 333.700 drachmas on Friday.

Also at the fixing, the US dollar was set at 347.370 drachmas from 345.780 drachmas in the previous session and 345.500 drachmas on Friday.

Greek long-term yields fall further: Long-term yields fell substantially during a regular weekly bond auction by the Public Debt Management Organization on Tuesday.

The average weighed yield of a 20-year state bond issue, worth 240 billion drachmas and paying an annual coupon of 6.50 percent, fell to 6.46 percent from 6.84 pct in the previous auction of same bonds in January.

Bids submitted the market's primary dealers totalled 393.5 billion, 1.64 times more than the asked sum, evidence of strong interest for Greek long-term securities. The organization finally accepted bids totalling 271.5 billion drachmas.

The 20-year bond issue was a re-opening of an original issue dated October 22, 1999. Its average weighed price was set at 100.348 units while its lowest acceptance price was 100.270.

[13] Investment Bank of Greece begins operation on Wednesday

Athens, 08/03/2000 (ANA)

At its first stage, the bank will focus its activity in private banking, corporate finance and treasury operations.

The bank's chairman and chief executive, Stelios Panagopoulos, former Bank of Greece governor and PASOK's Eurodeputy, told a news conference that the bank's strategic aim was to participate in the corporate finance, merchant banking, project finance and the shipping sectors, and money markets, through a selective customer base.

The bank will be based in Athens. Panagopoulos said that due to its specialized nature the bank did not plan to create a large retail banking network, although it plans to open two branches in Thessaloniki and Piraeus and expand its presence in Central Greece and Crete.

The Investment Bank of Greece plans to expand in the Balkans through its Thessaloniki branch.

It is also expected to sign a cooperation agreement with two foreign banks, one from Switzerland and the other from the UK.

Panagopoulos said that bank's comparative advantage was its specialized nature and its shareholding statute with none of the founding shareholders owning more than a 6.0 percent stake in the bank.

[14] Barnier notes rise in Athens metro budget since 1991

BRUSSELS, 08/03/2000 (ANA - M. Spinthourakis)

The Commissioner was quoted in a press release issued by the main opposition New Democracy (ND) party from the Belgian capital.

Barnier, in a written reply to ND Euro-MP Costas Hatzidakis, reportedly notes that the level of European Union co-financing for the project rose from 261.5 billion drachmas in 1991 to 530 billion in 1999 (one US dollar equals about 345 drachmas at current rates).

According to the ND release, Barnier said that the Greek Parliament in 1994 approved a 14.64-percent (at December 1999 rates) increase in the project's budget for improvements.

Additionally, he cited a 10-percent increase in the project's budget (March 1998 rates) in order to "face the difficulties and unforeseen geological conditions and increased safety requirements for the city's buildings".

Hatzidakis' tabled question also asked what progress would have been recorded for the all-important metro if a construction/financing model similar to the one employed for the new Athens airport at Spata had been followed - namely, self-financing and a management concession for a certain time period.

In his reply, Barnier said that according to information available to the Commission, the Greek state is considering the possibility of awarding the metro's extension through self-financing and management hand-over contracts.

[15] Press reports out of Sofia again focus on BTC negotiations

SOFIA, 08/03/2000 (ANA)

A portion of the Sofia dailies claimed that Bulgarian Foreign Minister Nadejda Mihailova reassured her Greek counterpart George Papandreou on Sunday that negotiations for the purchase of the Bulgarian Telecommunications Organization (BTC) would conclude soon. Mihailova and Papandreou met on Sunday, along with Turkey Ismail Cem, for contacts on mostly Balkan-related issues. The Bulgarian press reports cited unnamed media reports in Greece as the source of the statement.

A deal to purchase a majority stake of BTC by Greece's state-run telephony utility OTE and KPN of the Netherlands has generated opposition amid some quarters of the neighboring country's political leadership and state bureaucracy.

[16] Social Security Foundation chooses advisers for bond issue

Athens, 08/03/2000 (ANA)

[17] British Hellenic Chamber to hold e-commerce workshop

Athens, 08/03/2000 (ANA)

Further information is available on 7210361.

[18] Messages on Women's Day

Athens, 08/03/2000 (ANA)

Prime Minister Costas Simitis said in his message that a change in political mentality was of paramount significance in ensuring greater practical equality.

"Women elect and are elected but do not participate in politics (as much) due to the prevalence of an erroneous mentality according to which they cannot contribute as much as men... We must seek a broadening of the participation of women in social and political life in order to deal more effectively with problems," he said.

Despite progress in legal provisions, gender inequality evident in all aspects of social organization, largely due to the willingness of the two major parties to heed the dictates of the markets and their reluctance to include women in their election tickets, said the Coalition of the Left (Synaspismos).

The Democratic Social Movement (DHKKI) said the women's movement today was an indispensable part of progressive forces as the gray landscape of globalization and the armies of unemployed and economic migrants cast its shadow on hundreds of millions of women.

[19] Aegean University delegation visited Izmir and held talks with local Turkish university officials

Athens, 08/03/2000 (ANA)

"The prospect of an Aegean Sea where a new civilization can and should flourish, similar to the civilizations which flourished in the region (in the past), a civilization which should be the result of cooperation because the new era which is full of challenges cannot be tackled by isolated nations," the Greek rector said during his address.

Ibraim Ekterim, a representative of students from the September 9th University, outlined the Turkish students' proposals for the creation of an organization for student exchanges between the universities, while September 9th \University Fethi Idiman presented the university's view on the continuation of cooperation and the development of joint scientific programs.

Both the Greek University of the Aegean and the Turkish University of the Aegean decided to initiate an student exchange program and widen cooperation on issues of mutual scientific interest.

Greek ambassador in Ankara to participate in university lecture

[20] Celebrations held marking anniversary of Dodecannese islands' union with Greece

Athens, 08/03/2000 (ANA)

The events culminated with a large military parade. It was preceded by a church service officiated by Rhodes Metropolitan Apostolos.

The government was represented by Agriculture Minister George Anomeritis. Also present were former prime minister Tzannis Tzannetakis, Democratic Social Movement (DHKKI) leader Dimitris Tsovolas and veteran politician Leonidas Kyrkos.

[21] Networking of Greeks abroad, philhellenes

MELBOURNE, 08/03/2000 (ANA - S. Hadjimanolis)

Lambrinidis met in Melbourne and Sydney with Greek-Australian and Australian personalities to brief them on Greece's course in the European and international sphere, its relations with neighboring countries and on the mutual benefits that will arise from the improvement in its relations with Turkey.

According to Lambrinidis, his trip to Australia was part of an ongoing initiative of the Greek government to raise the country's profile internationally, aimed mainly at the major centers of overseas Greeks. The target, he said, was to create a "global network of philhellenes" through which economic, scientific, political, cultural and educational exchanges would take place for the mutual benefit of all sides involved.

[22] Turkish AKUT emergency rescue squad members due Wednesday

Athens, 08/03/2000 (ANA)

The AKUT team, headed by Atila Ulas, enjoy wide popularity in Greece after it rushed to Athens to assist in recovery operations after the devastating September 9 earthquake in which some 150 people were killed and thousands were left homeless.

The team, which flies in from Istanbul on Wednesday, will take part in the first stage of a cooperation program with the Greek Red Cross' Samaritan Corps Rescue Squad.

The one-year program, titled "Program for Harmonization of Rescue Practices and Methods", is being financed by the Greek foreign ministry, which has so far secured 50 percent of the programs total budget, according to ministry sources.

[23] Greek Holy Synod condemns book

Athens, 08/03/2000 (ANA)

It described in a statement as "blasphemous, hideous and vulgar" former Coalition of the Left deputy Mimis Androulakis' book "M to the nth power" which hints at a possible sexual relationship between Jesus and Mary Magdalene.

Demonstrators burned the book in Thessaloniki last month and a public prosecutor issued charges of "insulting a religion" against Androulakis and Kastaniotis, his publisher, earlier this week.

Reacting, the author said "the Holy Synod returns to the darkest page of its history".

[24] Visiting US envoy says now is 'best time' for Cyprus settlement

NICOSIA, 08/03/2000 (CNA/ ANA)

The US envoy, who arrived here on Tuesday for contacts with the two sides, called on them to be "intensely engaged" in the peace effort and expressed hope that the third round of UN-led proximity talks will be meaningful leading towards an overall settlement.

Moses said security is pivotal to any solution in Cyprus and warned against losing the momentum created by the European Union summit in Helsinki if there is no comprehensive resolution of the problem.

Speaking on arrival at Larnaca airport, Moses expressed the US commitment to the UN peace process and said, "we believe very firmly that this is the best time for the parties to reach a comprehensive settlement on the island."

All the factors are there that could make that possible, he added.

"What we need is political will and commitment on the island that will bring that result for the betterment of all people of Cyprus," he said.

Asked if the next round of talks, due to begin in May in New York, would be more constructive, Moses said "Yes, I would expect that the parties will be engaging more intensely in the third round."

Noting that the Greek and Turkish Cypriot sides have stated their positions and are now encouraged to bridge the differences, Moses said "I would hope in this third round we will be at that stage where there will be meaningful talks that will lead toward a comprehensive settlement."

"What you need is political commitment and a willingness on both sides to compromise. Where we are today is the sides have positions that are different but there is a recognition that what is ultimately in the interest of both sides is a comprehensive settlement on the island," he told the press.

Invited to say if direct talks are set to begin, Moses noted the commitment of the two sides to the concept of direct talks but added "they are not there yet".

The US diplomat refrained from commenting on demands by Turkish Cypriot leader Rauf Denktash for recognition of his puppet regime in Turkish-occupied Cyprus before any negotiating takes place. Moses described Denktash's presence at the negotiating process as "constructive and encouraging" but avoided further comment.

Asked if he brought any new ideas to help the side get closer together, he said he always has some ideas and added, "both sides have encouraged us to come with fresh ideas and we do have some thoughts we will be sharing with the parties." Replying to questions, he said security is "critical in the negotiations" and stressed the need for both parties to "feel secure in their properties and in their homes and in their persons."

That, he said, is essential for any settlement, pointing out also that security and human rights are intertwined. "One does not supplant the other," he concluded. Commenting on the EU decisions in Helsinki (to declare Turkey candidate country and disconnect Cyprus' accession from a political solution) Moses warned that the momentum will be lost if there is no comprehensive settlement.

Referring to President Bill Clinton's engagement in efforts to find a settlement, he said the president is engaged and will remain engaged but it is up to the parties as to whether there will be a comprehensive agreement prior to the inauguration of the next US president.

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