Athens News Agency: Daily News Bulletin in English, 01-07-19

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

CONTENTS

[01] Economy on good course, gov't will serve out its term, PM says

[02] Elections will take place in spring of 2004, Reppas says

[03] ND leader blasts government during visit to Athens Prefecture offices

[04] Spokesman announces gov't meetings on 3rd CSF, water use

[05] Spokesman denies alleged meeting between PM and Djindjic

[06] FM hosts dinner for PASOK's 52 Parliament summer recess group

[07] Government avoids comment on charges against Lambrakis

[08] Belgium calls on Turkish Cypriots to return to Cyprus proximity talks

[09] Greek court issues restraining order on seizure of German properties in Athens on war reparations case

[10] Outgoing US ambassador sees good future in Greek - US relations

[11] Coalition party leader arrives in Genoa for anti - globalization events

[12] Trade unionists present positions ahead of PASOK congress

[13] Budget for 2002 to aim for 1.0-1.5 pct surplus

[14] Greek inflation rose to 4.5 % in June 2001, Eurostat reports

[15] EU okays state subsidy for Greek polypropylene plant

[16] EU warns Greece to obey rules on navigational safety

[17] EU warns Greece to lift cabotage on non-island routes

[18] Gov't "battling" to spur social development, minister says

[19] Environment minister presents 'Clean Coasts' program

[20] Athens Bourse Close: Stocks stay perky for second session

[21] Onassis Foundation donates 100,000 dollars to Peruvian quake victims

[22] Expatriate youths arrive in Greece for hospitality program

[23] Kaklamanis receives Ukrainian students, underlines close ties between nations

[24] Draft resolution on Olympic Truce tabled in U.S. Senate

[25] Jack Straw says Britain to continue supporting UN process for Cyprus settlement

[01] Economy on good course, gov't will serve out its term, PM says

Athens, 19/07/2001 (ANA)

Simitis briefed Stephanopoulos on domestic and external developments, his talks with Russian President Vladimir Putin during his three-day visit to Moscow, from which he returned Tuesday afternoon, progress in preparations for the 2004 Olympic Games in Athens, and EU affairs, particularly recent talks in the EU concerning Turkey.

Turning to the economy, Simitis told reporters it was on a "very good course", noting that the rate of growth of the Greek economy was currently nearly double that of the EU average and one of the highest for Greece in many years.

Inflation was within the average range of the EU inflation rates he said, noting "there are countries in the EU with a higher inflation than us, and countries with a lower inflation".

The premier said that the government's stabilization and development policy would continue, while with the programs drafted to limit social isolation and combat unemployment "we are moving toward the goal of social justice and cohesion".

"We shall continue unwaveringly in the same direction, taking, in the immediate future, the necessary actions in order to strengthen social cohesion," he said.

Replying to press questions on opposition criticism that the economy presented worrisome phenomena, he brushed the criticism off as "excessive" and put for-ward for reasons of "political expediency".

"I wish to assure the Greek people that our course remains according to plan, and guarantees stability, growth and social adaptation, with the primary goal being a strong society," Simitis said, adding that his government would proceed steadily in that direction "for more prosperity and increased social spending".

[02] Elections will take place in spring of 2004, Reppas says

Athens, 19/07/2001 (ANA)

Asked to clarify statements by Prime Minister Costas Simitis earlier on Wednesday regarding "exaggerations serving specific ends", the spokesman said that the prime minister meant exaggerated negative reports on the economy for political purposes.

"Some people are trying to present the Greek economy as an economy in dire straits, when all the economic indices lead to the opposite conclusions. The Greek economy is doing well," Reppas said.

Asked if the prime minister's statements were also targeted at the media, Reppas replied that the media voiced their own views and were not political parties.

He added, however, that both political parties and the media should contribute to creating a climate of stability and trust in the Greek economy.

[03] ND leader blasts government during visit to Athens Prefecture offices

Athens, 19/07/2001 (ANA)

Karamanlis said that the country "is not being governed, when crucial issues are referred to party get-togethers".

"The inertia and picture of lack of government cannot be countered by structural changes that have been repeatedly announced and convince no one," the ND leader said.

He stressed the need for the "institutional consolidation" of local government and its reinforcement with funds and authorities.

The citizens, he added, were "raped and battered daily in their transactions with the state, and come up against a faceless bureaucracy, frigid indifference and phenomena of corruption".

Karamanlis accused the government of treating local government with "hostility and suspicion", claiming lack of cooperation between the government and the Athens Prefecture on the 2004 Olympic Games.

He reiterated his overture to voters of all the parties and offered a "hand of cooperation" to the local government representatives regardless of their political party, adding that he desired "relations of confidence and cooperation" with them.

The ND leader further accused the government of "attempting to revive the dividing lines and fanaticism of the past", adding that he was "not preaching the abolition of different views and perceptions".

"What is important is that we work together, in an efficient and qualitative way, despite our different opinions and perceptions," Karamanlis said.

Gov't spokesman rejects accusations leveled by ND leader: Government spokesman Dimitris Reppas on Wednesday denied the accusations made by main opposition New Democracy (ND) leader Costas Karamanlis on the conditions citizens face when dealing with the state administration's services.

Karamanlis blasted the government during a visit to the Athens Prefecture offices, where he was briefed on the problems faced by local government.

Reppas noted that ND always stood against all reform PASOK initiated for the local administrations, stressing that ND "was always a defender of the centralized state and of the total dependence of the country's regions to the central authorities".

He added that the ND leader should have been apologizing for the policies of his party on issues concerning local governments.

[04] Spokesman announces gov't meetings on 3rd CSF, water use

Athens, 19/07/2001 (ANA)

Reppas also announced a visit by Prime Minister Costas Simitis to the Evinos Dam on Friday, while on Monday the prime minister is to chair a meeting on water resources between Environment Minister Costas Laliotis, Agriculture Minister George Anomeritis and Public Order Minister Nikos Christodoulakis.

Commenting on a meeting between the prime minister and President of the Republic Kostis Stephanopoulos earlier on Wednesday, Reppas said the basic aims of the government's policy were stability, growth and social cohesion and that it would complete the work it had undertaken.

[05] Spokesman denies alleged meeting between PM and Djindjic

Athens, 19/07/2001 (ANA)

[06] FM hosts dinner for PASOK's 52 Parliament summer recess group

Athens, 19/07/2001 (ANA)

According to an official announcement, the foreign minister's invitation was extended for the deputies to be briefed on foreign policy issues. Papandreou avoided referring to any issue, apart from foreign policy matters.

Information from deputies contacted by the Athens News Agency (ANA) revealed that Papandreou focused on steadfast Greek positions regarding Greek - Turkish relations, the Cyprus issue, the Balkans and Greece's priorities in the European Union.

According to the reports, reference was only made once to the party's internal affairs. Papandreou was asked to comment on PASOK's October congress and expressed the wish that every-thing would go well.

Former foreign minister Karolos Papoulias reportedly commented on developments on the country's northern borders and said there should be no relaxation since ongoing instability and mainly Albanian nationalism manifested by certain groups could create certain problems, which Greece should be ready to con-front immediately and successfully.

[07] Government avoids comment on charges against Lambrakis

Athens, 19/07/2001 (ANA)

In response to questions, he added that the government had not undertaken any initiative on the issue since that would constitute an interference with the course of justice.

Charges of signing a false official statement were brought against Lambrakis, owner of the Lambrakis Press Organization (DOL), on Tuesday in connection with public-sector contracts undertaken by DOL's subsidiary Travel Plan.

Lambrakis is accused of submitting a signed statement to the National Radio and Television Council last year in which he said that he was not a state contractor.

An investigation by the public prosecutor, however, revealed that the travel and tourism agency 'Travel Plan' which belongs to the Lambrakis group also supplied packages of tickets to state-sector organizations and bodies. This means that the Lambrakis group is in violation of a 1995 law that forbids owners of mass media enterprises from taking on state-sector contracts.

[08] Belgium calls on Turkish Cypriots to return to Cyprus proximity talks

ISTANBUL, 19/07/2001 (ANA - E. Aretaios)

The ambassador, whose country currently holds the six-month rotating presidency of the European Union, said that Cyprus' accession negotiations were at a very good point, adding that the resolution of the Cyprus problem would be to the benefit of both communities on the island republic.

The ambassador also said that Turkey blocking the NATO-European Union cooperation in the defense sector - by insisting that it be included in decision-making bodies - would have a negative impact on its relations with the Union, calling on Turkey to accept its participation in the advisory bodies to the European security and defense identity.

"The ball is in Ankara's court," he said, adding that should Turkey insist on its positions "new problems will arise".

[09] Greek court issues restraining order on seizure of German properties in Athens on war reparations case

Athens, 19/07/2001 (ANA)

The restraining order will be in force until Sept. 19, date set by a court of appeals to hear Germany's case, which tabled two appeals on Monday against decisions taken by a Greek first instance court, which ruled in favor of the relatives of Greek civilians

According to sources the lawyer representing the relatives of the Distomo massacre victims will request of the court to speed up the process and rule on the issue on Thursday.

The relatives of the victims targeted the Goethe Institute's Athens campus and the German Archaeology Society's building, which could go on the auction block, if the appeal is rejected.

The initial process of appraisal and seizure was initiated early in July 2000, on the basis of a 1997 Livadia, central Greece lower court ruling ordering Germany to pay 9.4 billion drachmas in compensation to 296 descendants of 214 civilians murdered by German occupation forces in the village of Distomo during World War II.

[10] Outgoing US ambassador sees good future in Greek - US relations

Athens, 19/07/2001 (ANA)

During his talk, the US envoy stressed that Greece's role in the Balkans had changed dramatically in recent years.

"We support the democrats in Belgrade together," Burns said, while adding that cooperation and peace in the Balkan peninsula was crucial for Greek national security.

According to Burns, the troops in Kosovo and the Balkan region had to be maintained over the following years to maintain stability in Europe without warfare.

Regarding developments on the Cyprus problem, the envoy said no one could claim that peace was waiting around the corner but the United States and Britain were working hard toward a federal state.

He commented favorably on efforts for rapprochement between Greece and Turkey, saying that these steps create good prospects for the resolution of the Cyprus problem.

During Burns' visit to the island, there was a small demonstration by members of local communist party organizations and trade unions, including a scuffle with police as Burns left the literary society's lecture theatre.

[11] Coalition party leader arrives in Genoa for anti - globalization events

ROME, 19/07/2001 (ANA - L. Hatzikyriakos)

At noon, Constantopoulos met with the Italian Communists party secretary general Oliviero Diliberto and President Armando Cossuta. A meeting followed with the Parliamentary representative of the Democrats of the Left Luciano Violante and the director of the Gramsci Foundation.

Speaking to reporters, Constantopoulos said that he will be holding talks with other leaders of the European Left group in Genoa and will outline the idea for the creation of a European Leftist party.

Constantopoulos said he discussed these issues with Diliberto in Rome, while in Genoa he will also be seeing the Communist Refoundation leader Fausto Bertinotti. A summit is also being scheduled in Athens to prepare the ground for such a prospect.

Regarding events to take place in Genoa, the Coalition has organized the transfer of about 1,000 people, while Constantopoulos and Coalition Eurodeputy Mihalis Papayiannakis will be addressing political gatherings.

"We are interested in pointing out the need for this new social movement to become crystallized politically. Namely, we want political democratic settlements for the phenomena of the new technologies market. We believe that political life is being renewed. Democracy is being renewed and the Left stands to gain. These new social movements are veins of renewal. In essence, we want these political priorities for a Europe, which will be independent from the tutelage of the U.S., which will have its own autonomous defense and security to be promoted both at European and national level," he said.

Constantopoulos expressed the idea for the creation of a permanent international watch, which will be able to be a globally discernible forum for these new forces towards various summits.

A delegation of the Communist Party of Greece (KKE) will also be leaving for Genoa on Thursday.

First Greek anti-globalization protestors leave for Genoa: The first 900 anti-globalization protestors from Greece left for Genoa without incident on Wednesday on board two ferries from Patras port bound for Ancona.

Prior to their departure and under discreet security, the group staged a small anti-globalization demonstration within the port itself, which did not cause any problems.

Another large group of protestors taking part in the 'Genoa 2001' initiative, which plans to stage anti-globalization protests during a G8 meeting in the city, is due to leave by boat on Thursday, while members of the Greek Communist Party (KKE) and KKE-affiliated trade union group PAME are expected to depart for Genoa on Friday.

It is estimated that some 2,500 Greek protestors will make their way to Genoa in total.

[12] Trade unionists present positions ahead of PASOK congress

Athens, 19/07/2001 (ANA)

As the head of Greece's largest trade union umbrella, the General Confederation of Workers of Greece (GSEE), Polyzogopoulos had strenuously resisted the government's proposed reforms for the social security system, which would have lowered pensions.

Presenting the positions of PASOK - affiliated trade unions in the pre-congress debate, Polyzogopoulos said the congress should try to 'reconnect' the party to society and not further deepen the crisis.

Surrounded by trade unionists from GSEE, the civil servants' trade union movement ADEDY and labor centers, the GSEE president asked for a 'change of faces' that would bring PASOK in touch with society once again and give it prospects of victory.

Among the measures presented by the unions were a series of proposals for the social security system, true convergence, tax reforms, the 35-hour week and economic policy.

[13] Budget for 2002 to aim for 1.0-1.5 pct surplus

Athens, 19/07/2001 (ANA)

An eight percent rate of increase was currently forecast for revenue, and growth of 5.5-6.0 percent for spending against 2001, Drys told reporters.

In addition, the public debt is forecast to fall below 98.5 percent of gross domestic product, a level it is expected to reach this year.

Drys said the forecasts were in line with the stability program for the Greek economy in 2001-2004.

Under the plan, incomes policy will include wage rises above inflation for 2002.

[14] Greek inflation rose to 4.5 % in June 2001, Eurostat reports

Athens, 19/07/2001 (ANA)

According to the report, which is published each month in Brussels, Greek inflation was among the community's top three.

Among the 12 countries in the euro-zone, meanwhile, annual inflation rates were reduced from 3.4 per cent in May to 3.0 per cent in June, while in the same period last year inflation was running at 2.4 per cent.

Inflation amongst all 15 EU member-states was reduced from 3.1 per cent in May to 2.8 per cent in June, while in the same period last year it was 2.1 per cent.

Inflation rates were highest in the Netherlands (5.0 per cent), Portugal (4.6 per cent) and Greece (4.5 per cent). The lowest rates were in the UK (1.7 per cent), France and Denmark (2.2 per cent).

In relation to May 2000, annual inflation rose in Greece and Ireland, fell in 10 EU member-states and was unchanged in Spain, Italy and the UK.

In relation to June 2000, the largest increases in inflation occur-red in the UK (from 0.8 per cent to 1.7 per cent), in Sweden (from 1.4 per cent to 3.0 per cent) and Greece (from 2.2 per cent to 4.5 per cent).

The most notable reductions in inflation were in Luxembourg (from 4.4 per cent to 2.7 per cent), in Denmark (from 2.7 per cent to 2.2 per cent) and Ireland (from 5.7 per cent to 4.3 per cent).

[15] EU okays state subsidy for Greek polypropylene plant

BRUSSELS, 19/07/2001 (ANA / M. Spinthourakis)

The government will contribute 38 million euros to the project, which is budgeted at 117 million euros, in a subsidy classified as support for a private investment that will boost economic and regional development.

The plant to be built by state owned Hellenic Petroleum, a heavily traded stock on the Athens bourse, includes units for the output of two types of polypropylene.

It will be the country's first polypropylene plant.

[16] EU warns Greece to obey rules on navigational safety

BRUSSELS, 19/07/2001 (ANA / B. Demiris)

The warning came in the form of a reasoned opinion, the final stage before recourse to the European Court.

It covers a failure for Greece to order mandatory checks on vessels in port and release information at least once a month on the ships that were banned from sailing for safety reasons, and the names of vessels that were checked.

In addition, the country has to introduce a system of compulsory checks on ro-ro ferries and fast ferries plying serving regular routes.

[17] EU warns Greece to lift cabotage on non-island routes

BRUSSELS, 19/07/2001 (ANA / B. Demiris)

The warning came in the form of a reasoned opinion, the final stage before recourse to the European Court. The countries have two months to reply.

[18] Gov't "battling" to spur social development, minister says

Athens, 19/07/2001 (ANA)

It was also trying to make the best use of European Union funds under the Third Community Support Framework, and take measures to curb social exclusion, Giannitsis said.

The minister was speaking after a meeting with Prime Minister Costas Simitis and Development Minister Nikos Christodoulakis to prepare the government's annual economic speech, which will be delivered by Simitis in early September.

Labor minister says ministry aims at speedier issuing of pensions

Speaking after holding talks with the Citizen's Advocate Nikiforos Diamantouros on Wednesday on social security funds services for citizens, Labor Minister Tassos Giannitsis said his ministry aims at achieving the speedier issuing of pensions.

Deputy Labor Minister Nikos Farmakis also attended the meeting.

"The aim is to have the payment of pensions at all funds take place in one or two months at the latest from the time the insured submit applications," Giannitsis said after the meeting.

"What is of interest to me is for the people, and particularly the people who are in need, to be able to take their pensions quickly," he added.

Commenting on the delay at insurance funds for a pension to be issued, Giannitsis said time would be improved a great deal with computerization. However, he added that the time needed for a pension to be given differs from one fund to another and from one insured person to another.

[19] Environment minister presents 'Clean Coasts' program

Athens, 19/07/2001 (ANA)

The program includes funding for beach cleaning by prefectural authorities, water quality sampling in 1,862 points and a campaign to inform the public about protecting coastal and marine environments.

It also provides for restoration work in 40 coastal towns and Environment - ministry subsidized plans for coastal restoration in communities and municipalities, especially in Attica where the coastal environment is most degraded or in areas that do not have the necessary infrastructure.

According to the minister, the �Clean Coasts� program had spent 18.73 billion drachmas since 1994, while the ministry had given 150 million drachmas toward the program in 2000 and would give a similar sum in 2001.

[20] Athens Bourse Close: Stocks stay perky for second session

Athens, 19/07/2001 (ANA)

Buyers returned to high capitalization paper, including blue chip banks, after fighting shy of quality stocks for two sessions, driving up prices across the board, the analysts said.

The Athens general index closed at 2,452.59 points after a slow start to gain 4.54 percent. Turnover was slightly higher at 106.3 million euros (36.2 billion drachmas).

The FTSE/ASE-20 index for blue chip and heavily traded stocks ended 4.89 percent higher; the FTSE/ASE-40 for medium capitalization paper 4.15 percent up; and the FTSE/ASE-80 for small cap equities gained 3.47 percent.

Advancers led decliners at 337 to 15 with 11 issues remaining unchanged.

The most heavily traded stocks were Hellenic Telecommunications Organization, National Bank of Greece, Alpha Bank, Sex Form and Commercial Bank of Greece.

On Monday the bourse had shed nearly five percent as part of a lasting slump after buyers resolutely stayed out of the market with small capitalization shares the worst hit. Stocks picked up steam on Tuesday in low turnover.

Bond prices nose up: Bond prices in the domestic secondary market on Wednesday finished higher in moderate trade.

The Greek benchmark 10-year bond showed a yield of 5.52 percent, and the yield spread over German bunds was 48 basis points.

Turnover through the central bank's electronic system totalled 770 million euros (262.3 billion drachmas).

Buy orders accounted for the bulk of turnover.

Equity futures end higher: Equity futures traded on the Athens Derivatives Exchange ended higher on Wednesday for the second straight session after the stock exchange jumped, fuelled by blue chips.

Traded were 14,935 contracts on turnover of 93.6 million euros, traders said.

[21] Onassis Foundation donates 100,000 dollars to Peruvian quake victims

Athens, 19/07/2001 (ANA)

[22] Expatriate youths arrive in Greece for hospitality program

Athens, 19/07/2001 (ANA)

The program, initiated by the General Secretariat for expatriate Greeks, and which is being carried out through the co-operation of insurance funds and various other Greek organizations, began in 1995 and has so far hosted some 7,900 children in various camps throughout Greece.

With the aim to strengthen the relations expatriate youths share with Greece as well as introduce them to Greek principles, culture, as well as learning of the Greek language, the program will this year host some 900 youths all aged nine to thirteen in the areas of Evia, the island of Tinos and the Kalamos, Attica.

[23] Kaklamanis receives Ukrainian students, underlines close ties between nations

Athens, 19/07/2001 (ANA)

Kaklamanis said that a Europe that can expand from the Atlantic coast to the Ural Mountains, as referred to by General Charles De Gaul and the late prime minister Andreas Papandreou, "can ensure continuing peace, stability, economic growth and development for all of its nations."

The President of the Greek Parliament underlined the need for increased cooperation between all nations, municipalities and communities.

He also noted the close friendship between Greece and Ukraine, of which, he added, is being further promoted with bipartite contacts, but also in the framework of international organizations such as the European Inter-Parliamentary Orthodox Council and the Black Sea Economic Cooperation group.

[24] Draft resolution on Olympic Truce tabled in U.S. Senate

WASHINGTON, 19/07/2001 (ANA - T. Ellis)

The resolution, countersigned by six other senators, including the Greek-American Paul Sarbanes, underlines the significance of the institution of the Olympic Truce as an implement for promo-ting peace and understanding worldwide and notes the operation of the International Olympic Truce Center in Athens and the ratification of three UN General Assembly resolutions favoring respect for the Olympic Truce.

The resolution by Senator Daschle calls on the U.S. government to cooperate with Greece to achieve the successful hosting of the 2004 Olympic Games and for observance of the Olympic Truce throughout their duration.

[25] Jack Straw says Britain to continue supporting UN process for Cyprus settlement

NICOSIA, 19/07/2001 (CNA/ANA)

Replying to a letter sent to him by Councilors of the London Borough of Barnet Andreas Tambourides and Kanti Patel, Straw assured Britain would remain committed to working with the UN Secretary-General to help achieve such a solution and would continue to urge all concerned, including Turkey, to cooperate with him in a flexible and positive manner.

In his replying letter, the British foreign secretary noted the British government shared the Councilors' and their constituents' concerns about the lack of a settlement in Cyprus and agreed that the status quo in Cyprus was unacceptable and considered that the best way forward was through a negotiated political settlement.

He also welcomed the progress Cyprus was making towards being in the first group to join an enlarged EU and said Britain was standing by the decision reached at Helsinki EU Summit that a settlement would not be a precondition for Cyprus EU accession.

"But our objective continues to be to help secure a comprehensive settlement before Cyprus joins," he added.

In their letter to Straw the two Barnet Councilors urged him to redouble his efforts in applying pressure on Turkey and Turkish Cypriot leader Rauf Denktash to resume the UN-led proximity talks Denktash had abandoned in November last year.

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