Athens News Agency: Daily News Bulletin in English, 01-09-05

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

CONTENTS

[01] Simitis unveils four-year extra social spending program

[02] FM in Cyprus for important talks with gov't, party leaders

[03] Reppas remarks on naturalizations of foreigners, says ND seeks alibi

[04] Karamanlis: PM deliberately trying to polarize society

[05] Greek division commander visits Albanian military units

[06] German appeal in reparations case heard by appellate court

[07] Church of Sweden Archbishop to visit, meet with Christodoulos

[08] Turkish authorities disband board of ethnic Greek institution

[09] Economic indicators to show steady improvement until 2004

[10] State telecom amends statutes in shift to private status

[11] State labor agency needs overhaul

[12] Black Sea Bank to hold seminar in Thessaloniki on EU ties

[13] Greece to host int'l olive oil conference

[14] Tourist coach strike to begin on Sept. 6

[15] Greek stocks remain under pressure for fifth session

[16] Rosselini, Depardieu to perform at Epidavros this weekend

[17] Information science guru M. Dertouzos buried in Athens on Tuesday

[18] Greek businessman arrested in Turkey, on Interpol warrant

[19] Turkish contractors eye 2004 Olympics projects

[20] UN envoy de Soto says he neither wants "to be optimistic nor pessimistic"

[21] EU commissioner expresses hope discussion on Cyprus issue "will now be kick-started"

[01] Simitis unveils four-year extra social spending program

Athens, 05/09/2001 (ANA)

Speaking to reporters, after a cabinet meeting, Simitis said that the government would add to new funds to provisions included in a Stability Program for the period 2001-2004, including: -400 billion drachmas for pension increases, -210 billion drachmas to support long-term unemployment and people with special needs, -190 billion drachmas for parent bonus and pension increases for civil servants and, -45 billion drachmas to support employment policies.

Simitis stressed that social spending would increase by 40 percent in the period 2001-2004, rising to 14.3 trillion drachmas from 10 trillion, while accumulated inflation would total 11 percent.

Pension spending will rise by 36 percent, while spending on social protection will increase by 41 percent.

The prime minister defended the government's achievements and claimed that social spending rose spectacularly also in the 1994-2000 period, reaching 10 trillion drachmas in 2000 from 4.7 trillion in 1993.

Simitis said the money to support social spending in the next four years would be raised from a lower public debt and a delay of a defense supply program.

"Our economic program in the next three years will ensure a strong and continuous growth rates of 4.5-5.0 percent annually, exceeding the EU average rates by two percentage points, and securing social cohesion in the country," he said.

Simitis said that a global economic slowdown would not affect the country's economy this year.

The prime minister noted that the government's economic policy combined with the implementation of social policy measures, "is gradually filling the gap in the living standards between Greek citizens with the average European".

Simitis noted that structural changes under way were implemented according to plan and announced that the government would present a draft bill aiming to lower taxes on companies' mergers and envisaging special tax treatment for venture capital companies in the new technology sector and a substantial decline in income taxes for Greek sailors.

The government would also seek a reform of the country's tax system based on a more fair distribution of tax burdens, in an effort to boost competitiveness and to simplify the tax system.

Unions cautiously welcome social package amid criticism: The country's largest trade union umbrella group on Tuesday cautiously welcomed a sharp rise in social spending unveiled by Prime Minister Costas Simitis, but the political opposition blasted the package of measures.

"They can help to ease major social problems faced by a large chunk of workers and pensioners," Christos Polyzogopoulos, the president of the General Confederation of Labor of Greece (GSEE), said in statement.

"At the same time, efforts have to continue. Primarily, the mix of economic and social policy should limit social inequality and avoid the need for new social packages every time," said Polyzogopoulos, who heads nearly a million workers in the private and public sectors.

However the GSEE's deputy president, Alekos Kalyvis, told reporters that the package was "almost empty."

The main opposition New Democracy (ND) party also called the measures "empty", accusing the prime minister of paying more attention to packaging than content.

"Simitis has yet again forgotten that 2.5 million Greeks live below the poverty line; that 140,000 jobless in 1981 have swelled to more than 500,000 with no major population rise," ND's social affairs spokesman, Nikitas Kaklamanis, said in a statement.

Kaklamanis accused the government of populism ahead of the prime minister's annual economic policy speech on Saturday and a congress of the ruling PASOK party to be held in October.

Simitis' statements were "vague generalizations about hundreds of billions of drachmas," he added.

The Communist Party of Greece (KKE) charged that the package of social measures would boost the government's privatization drive, spur mergers and acquisitions, and concentrate capital in fewer hands; in turn leading to redundancies and greater commercialization in health, education and welfare.

Finally, the Coalition of the Left and Progress said that the government was trying to sweeten the public over its social policy, which had hurt more vulnerable groups. In addition, the rich were becoming more powerful.

"The prime minister is handing out election-packaged crumbs to the very poor in order to perpetuate pressure on incomes and unfair taxation on small and middle incomes," said the Coalition's economic and social affairs spokesman, Dimitris Papadimoulis.

[02] FM in Cyprus for important talks with gov't, party leaders

Athens, 05/09/2001 (ANA)

In greeting Papandreou at the airport, his counterpart Ioannis Kasoulides noted that the Greek minister's visit comes at a time when agreement between the two governments was necessary at a diplomatic level, and when Cyprus was entering a process that could pave the way to the resumption of peace talks.

In addition, Kasoulides said, Cyprus' course towards EU accession was heading into the final stretch, while "on the diplomatic field, we are jointly facing a series of diplomatic battles in the European Parliament, the Islamic Conference and elsewhere". At the same time, he continued, Papandreou would have the opportunity to confer directly with all Cypriot political leaders and to directly address public opinion on the island republic.

Papandreou said the purpose of his visit, as always, was to advance the Cyprus issue.

"For us, the primary issue is always the resolution of the Cyprus problem," he said.

"We are at a very important stage in which on the one hand we have Cyprus' EU accession talks, which are on a positive course and at the final stage, while in tandem efforts are being made for continuation of the negotiations under the aegis of the United Nations within the framework of the UN general assembly and security council resolutions," Papandreou added.

Greece, he continued, "acts solely within that framework in its effort to contribute to the best and most constructive manner, through the diplomatic battles it wages jointly with Cyprus not only in the Europarliament but in other fora as well for advancement not only of a Cyprus solution but also for securing the international community's backing of the basic positions on the Cyprus issue".

Papandreou said his meetings during a two-day stay in Cyprus would include the country's entire political leadership and government. Immediately after his arrival, Papandreou went to the foreign ministry for a working lunch between the Greek and Cypriot delegations, which will be followed by a joint press conference by the two foreign ministers.

In the afternoon, Papandreou will meet separately with Democratic Rally leader Nicos Anastassiades, a representative of the AKEL leftwing party, Democratic Party leader Tassos Papadopoulos, KISOS leader Yannakis Omirou and Attorney General Alecos Markides.

Wednesday's itinerary includes meetings with speaker of the Cyprus House of Representatives, Demetris Christofias and Archbishop Chrysostomos. He will also be received by Cypriot President Glafcos Clerides in the morning and pay a call on the ailing former president Spyros Kyprianou, followed by separate meetings with the leaders of the smaller political parties, before his departure in the early afternoon for Athens.

[03] Reppas remarks on naturalizations of foreigners, says ND seeks alibi

Athens, 05/09/2001 (ANA)

The spokesman added that the main opposition New Democracy (ND) party was seeking an alibi for its defeat in the parliamentary elections.

Reppas said that investigations reveal that during the ten-year period 1990-2000, Greek naturalizations numbered about 104,000.

From this figure, the spokesman added, 56,000 took place during the three-year period 1990-1993 when the country was governed by the ND party. "From only this fact anyone can draw his own conclusions," he said.

[04] Karamanlis: PM deliberately trying to polarize society

Athens, 05/09/2001 (ANA)

In referring to PM Costas Simitis, the main opposition leader said the former is �deliberately dividing the people� in order to sustain his government and remain in power.

�Instead of serving up dividing lines to a partisan party audience, I call on the prime minister to a public debate over the country�s major problem,� Karamanlis said.

The ND president also sharply criticized a tax relief and social benefits package Simitis is expected to unveil over the weekend during the annual �state-of-the-nation� address traditionally given by Greek premiers during the inauguration of the Thessaloniki International Fair (TIF).

Karamanlis termed the package a mere �political deception�, while stressing that everything the government announced recently was no more than what it was obliged to implement years ago, namely, a two-parent bogus for civil servants and an improved public sector wage scale.

He also accused the prime minister and his closest advisers of unveiling false unemployment figures, adding, �never has a premier said so much about the social state and done so little�.

[05] Greek division commander visits Albanian military units

TIRANA, 05/09/2001 (ANA - P. Barkas)

The visit is part of the cooperation efforts between the Greek and Albanian defense ministries in the spirit of the regional stability pact.

The Greek general, on his first day here, visited the largest Albanian army unit in the south of the country escorted by Colonel Rapo Nislay, commander of the Gjirokaster armored brigade.

Within the framework of the aforementioned pact joint athletic events will be held in Ioannina, Greece on Sept. 21 and Gjirokaster, Albania on Oct. 4, with soldiers from both countries participating.

[06] German appeal in reparations case heard by appellate court

Athens, 05/09/2001 (ANA)

In one summary ruling, the appellate court rejected a motion filed by the German state for a temporary suspension of the decision allowing for the confiscations, a decision handed down by a one-judge first instance Athens court.

Sept. 19 now stands out as the next crucial date in the highly watched case, with plaintiffs � relatives of civilians executed in a central Greece village by German troops during the war � saying the process for auctioning off the buildings housing the Goethe Institut and the German Archaeological Society in Athens will commence on that day.

However, a judgment by the appellate court may come first.

One of the points raised in the German side�s appeal cites a pending ruling by a special high court over the issue of exterritoriality, i.e. whether Greek lower courts retain jurisdiction to hear cases involving foreign states.

A court in Livadia, central Greece, had initially found in favor of the relatives of 214 Distomo villagers shot by German occupation forces, ordering Germany to pay 9.4 billion drachmas in compensation.

In an earlier petition, attorneys for the German Federal Republic stated that the decision to execute the lower court ruling was invalid because consent of the Greek justice minister was required for the seizure of foreign assets, something that had not been obtained.

[07] Church of Sweden Archbishop to visit, meet with Christodoulos

Athens, 05/09/2001 (ANA)

"I look forward to meeting Archbishop Christodoulos and to have the opportunity to discuss issues of common concern with him. The Greek Orthodox Church is an important part of the Orthodox World, Hammar said, according to an announcement by the Swedish embassy in Athens.

"Bearing in mind that several hundreds of thousands of Swedes travel to Greece every year and then, often for the first time, come into contact with the world of Orthodoxy, it seems vital and important for me to be able to visit Athens," the Swedish Archbishop said.

Noting that representatives of the Church of Sweden and of the Greek Orthodox Church in Sweden meet on a regular basis, and given that some 20,000 practicing Greek Orthodox Christians live in Sweden today, "it seems natural for me to meet Arch-bishop Christodoulos in Athens," he added.

The Church of Sweden is one of the largest Evangelical-Lutheran Churches in the world, with more than 6.5 million members. The Church of Sweden and its Archbishop is also one of the leading churches of the Lutheran World Federation, the embassy announcement noted.

While in Athens, Archbishop Hammar will also participate in the 25th anniversary celebrations of the Swedish church at Pireos street in central Athens.

[08] Turkish authorities disband board of ethnic Greek institution

ISTANBUL, 05/09/2001 (ANA � A. Kourkoulas)

The firing of the board�s members has caused an administrative impasse for several ethnic Greek charitable organizations, while hefty fines also accompany the decision � a major deterrent for anyone interested in managing the assets of the institutions and organizations belonging to the once robust ethnic Greek community of Istanbul.

At press time it was uncertain how the disbanded board members would react, as they are now faced with sizeable fines.

The state-appointed agency overseeing Turkey�s charitable organizations apparently based its support for the decision on claims of mismanagement.

A previous attempt by the same agency to disband the board of the embattled Halki Theological School drew international criticism, which eventually reversed the decision.

The current administrations at the various ethnic Greek charitable institutions date from 1991, after decades of legal prohibitions against elections for minority organizations in the neighboring country.

[09] Economic indicators to show steady improvement until 2004

Athens, 05/09/2001 (ANA)

In 2002-2004, investments are expected to rise by 10.4 percent annually and growth by 4.8 percent on an annualized basis from 4.6 percent this year. Inflation is seen dropping to 2.7 percent in the three-year period, the sources said.

The progress of indicators represents the anchor for a government package of social measures, they added.

[10] State telecom amends statutes in shift to private status

Athens, 05/09/2001 (ANA)

OTE's president and chief executive officer, Nikos Manasis, told a shareholders' meeting that the change to comply with a law on SA companies would give the firm greater flexibility in restructuring following its departure from the state sector.

Completion of OTE's privatization would be effected through the change in statutes, allowing the state's ownership to drop to one third of equity. In addition, shareholders would elect board members, Manasis said.

The state now holds about 40 percent of OTE's equity capital.

Shareholders endorsed a stock option plan for executives that Manesis said he wanted to extend to company staff and executives of subsidiaries.

Also approved was extension of a former decision allowing a share buyback of up to 10 percent in order to aid the company's share price on the Athens Stock Exchange.

[11] State labor agency needs overhaul

Athens, 05/09/2001 (ANA)

The agency had so far failed to meet expectations of the public, especially those of the unemployed, at a time when the jobless rate was high, the committee said in a statement.

Consensus was required for the overhaul in order to avert overlapping duties, and the emphasis in legislation to effect the change should be boosting employment along with training for the unemployed and certain categories of workers, the statement added.

[12] Black Sea Bank to hold seminar in Thessaloniki on EU ties

Athens, 05/09/2001 (ANA)

The seminar on September 10 is timed to coincide with the Thessaloniki International Trade Fair, which is traditionally visited by leading politicians, corporate executives and representatives of European organizations.

Officials of the bank told a news conference in Thessaloniki that the findings of a European Union study on the Black Sea region's economic outlook would be debated at the seminar, the bank's first to be held on a regional level.

The survey says that an optimistic forecast would give the region an annual growth rate of 4.0 percent by 2010. In the same period, trade between the 15-member EU and the region should double.

Greece's commissioner to the EU, Anna Diamantopoulou, is to address the meeting. Other speakers include politicians from Greece and Turkey, and EU officials.

The Black Sea Trade and Development Bank launched operations in June 1999 in order to aid growth in the Balkans and Black Sea region and boost economic ties among shareholding countries.

The Black Sea bank's share capital of 1.2 billion US dollars is distributed among Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey and Ukraine.

Officials said that Greek firms had so far shown little interest in the bank's financing program.

[13] Greece to host int'l olive oil conference

Athens, 05/09/2001 (ANA)

The conference on "European Union's quality strategy and prospects of Greek olive oil", will bring together representatives from scientific institutions, organizations, enterprises and cooperatives in the sector and will try to offer answers to problems facing Greek olive oil producers.

Olive oil prices are currently 50 percent lower compared with 1961, while Italian producers' prices are 25 percent higher than their Greek counterparts.

Greece's market share does not exceed 2.0 percent with competition steadily rising.

The conference is organized by "Olive and Olive Oil" magazine with the support of the European Union and under the auspices of the agriculture ministry.

[14] Tourist coach strike to begin on Sept. 6

Athens, 05/09/2001 (ANA)

In a statement last week, Greece�s tourist bus owners criticized pending government measures as �maximizing� current problems.

�If the government�s proposals are implemented, the tourist coach, which was purchased without the slightest public assistance, will essentially disappear,� a statement read.

[15] Greek stocks remain under pressure for fifth session

Athens, 05/09/2001 (ANA)

Blue chips remained under pressure, with National Bank losing 2.13 percent, while telecom shares resisted pressures to end slightly higher. Coca Cola HBC (+2.49%) led blue chip gainers.

Traders said the Greek market followed the ups-and-downs of other European bourses before and after the news of Hewlett-Packard's takeover of Compaq in a deal worth 27 billion US dollars.

The general index ended 0.56 percent lower at 2,717.88 points, slightly off the day's lows of 2,709.95 points, with turnover a low 107.91 million euros, or 36.77 billion drachmas.

The FTSE/ASE 20 index for blue chip and heavy traded stocks ended at 1,526.36 points, off 0.65 percent, the FTSE/ASE 40 index dropped 1.43 percent to 297.21 points, and the FTSE/ASE SMALLCAP 80 ended at 883.76 points, down 0.70 percent.

The parallel market index for smaller capitalization stocks ended at 266.40 points, off 1.10 percent.

Broadly, decliners led advancers by 229 to 91 with another 42 issues unchanged.

Prices end mixed in heavy trade: Bond prices in the domestic secondary market on Tuesday finished mixed in brisk trade with players focusing on seven-year paper.

The Greek benchmark 10-year bond showed a yield of 5.29 percent, and the yield spread over German bunds was 46 basis points.

Turnover through the central bank's electronic system totalled 1.2 billion euros.

Buy orders accounted for just over half of turnover.

Equity futures finish down: Equity futures on the Athens Derivatives Exchange on Tues-day ended lower, matching a weak performance on the main market, which failed to hold onto early gains and follow European markets upwards.

Changing hands were 4,084 contracts on turnover of 28.0 million euros, traders said.

[16] Rosselini, Depardieu to perform at Epidavros this weekend

Athens, 05/09/2001 (ANA)

Rosselini holds the title role of �Persephone�, a melodrama written by Andre Gide in 1933, and directed by Jean Paul Scarpita.

The second part of the production � �Oedipus Rex� � features Depardieu as the narrator of Stravinsky�s 1927 opera-oratorium, with lyrics by Jean Cocteau.

Both works have been composed with large orchestras, choruses, soloists and lead performers in mind. True to Stravinsky�s vision, 250 musicians will be seated on the floor of the best-preserved ancient outdoor theatre in Greece, with a video-wall behind the stage allowing for the simultaneous broadcast of Greek subtitles.

The first performance comes on Friday night, with a second following the next day.

[17] Information science guru M. Dertouzos buried in Athens on Tuesday

Athens, 05/09/2001 (ANA)

He was buried Athens' First Cemetery at 11 am, in the presence of his wife Kathrine, his two children and scores of friends, relatives and colleagues. Former Prime Minister Constantine Mitsotakis was present at the funeral, while Deputy Foreign Minister Gregoris Niotis represented the government.

Dertouzos was born in Greece in 1936, studied in the Athens Polytechnic University, completed his studies in the United States on a Fulbright scholarship and completed them at the Massachusetts Institute of Technology (MIT), where he was offered a teaching and research position.

He offered solicited advice to late Greek prime minister Andreas Papandreou and former premier Constantine Mitsotakis, as well as to European Union technological programs.

US president Jimmy Carter appointed Dertouzos chairman to the committee for the upgrade of White House' computer system and was the recipient of several awards one of which the highest of the Greek Republic.

He wrote several books one of which, "Made in America" that he co-authored with another two professors, sold over 300,000 copies.

Greek Foreign Minister George Papandreou - in a message released for the late scientist - called Dertouzos an excellent scientist, who placed his research work in the service of humanity.

"The humanist thought of prof. Dertouzos and his pioneering work will always keep his vision alive in our memory

[18] Greek businessman arrested in Turkey, on Interpol warrant

ISTANBUL, 05/09/2001 (ANA - E. Areteos)

The Anadolu News Agency reported that Dafermos appeared before the public prosecutor who ordered that he be held in custody until the demand by the Italian authorities be examined.

It is not yet clear whether there is confusion about the identity of the person who was arrested.

The charges are linked to the seizure of a ship involved in arms smuggling. The company of the ship is alleged to have represented the interests of the arrested businessman.

The legal adviser of the Greek businessman, in a telephone call to the Athens News Agency, claimed that the arrest of Dafermos was slanderous and was aimed at harming the Ecumenical Patriarchate to which Dafermos had recently given a monetary donation.

The Greek Consulate is observing the case closely, while it is still unclear whether the Interpol signal, on the basis of which Dafermos was arrested, was made before his entry to Turkey on Friday.

[19] Turkish contractors eye 2004 Olympics projects

Athens, 05/09/2001 (ANA)

The corporate delegation will by led by the neighboring country's deputy minister of external trade.

[20] UN envoy de Soto says he neither wants "to be optimistic nor pessimistic"

NICOSIA, 05/09/2001 (CNA/ANA)

After the 50-minute meeting at the Presidential Palace de Soto replying to a journalist's question on whether he is optimistic he said "I don't want to be neither optimistic nor pessimistic" and declined to comment.

Earlier on Tuesday afternoon, the UN official met Turkish Cypriot leader Rauf Denktash, in the Turkish-occupied part of Cyprus.

On Wednesday, de Soto winds up his eight-day visit during which he held separate consultations with President Clerides and Denktash, aiming at the resumption of UN-led talks on the Cyprus question.

Prior to his departure on Wednesday afternoon he will give a press conference.

UN-led proximity talks that started in December 1999 were interrupted last year, when Denktash, backed by Ankara, withdrew from them, demanding recognition of his self-styled regime in the areas occupied by Turkish troops since 1974.

[21] EU commissioner expresses hope discussion on Cyprus issue "will now be kick-started"

STRASBOURG, 05/09/2001 (CNA/ANA)

In his contribution to this year's major debate in the EP on enlargement of the EU, Verheugen said the Union continues to support "emphatically" the UN Secretary-General's efforts to find a solution to the issue of Cyprus, a front-runner in the enlargement process.

He was "very happy" to report that the EU is cooperating closely with the UN "in an atmosphere of trust" and noted it is not by chance that the Secretary-General's meeting with Turkish Cypriot leader Rauf Denktash in Salzburg last Tuesday, aimed at bringing Denktash back to the negotiating table, was preceded by a meeting between the EU commissioner for enlargement and Denktash in Zurich the day before.

He also thanked the Foreign Ministers of Greece, Turkey and Cyprus, as well as the special envoys of the UN, the UK and the US for their close coordination and constructive dialogue.

"I hope discussion of the Cyprus issue will now be kick-started and that talks on substantive issues will begin soon. We must now focus all our efforts on settling the conflict," he said.

Verheugen advised against speculating on what to do if the effort fails. "The Helsinki accords", as he termed the decisions taken by EU leaders at their summit in the Finnish capital in December 1999, "give us room for maneuver and we must use it," he said.

In his general comments on the enlargement process, Verheugen said it had been "a wise decision" in the Goteborg summit not to give any specific accession dates for any individual candidate or groups of countries and added that the Commission would "abide resolutely" by the principles of individual merit, differentiation and the chance to catch up for each.

He said the Commission would not propose conclusion of the accession treaty for each applicant country until such time as it is convinced that the applicant "is properly prepared and meets all the conditions."

The commissioner said he would not speculate on how many new member states will be represented in the next European Parliament and which ones. He specified that ten of the 12 with which the Commission was now negotiating had decided to adopt the Goteborg timetable, so "we must in ourselves nonetheless be ready to accept an initial group of up to ten candidate countries."

Turning to the actual negotiations, he explained that all 31 negotiating chapters, except the one dealing with the budget and institutional questions, have been opened for ten countries and in some cases already provisionally closed. Cyprus is first on the list with 23 chapters concluded, followed by Hungary (22), Slovenia (21), the Czech Republic, Slovakia and Estonia (19), Lithuania (18), Poland and Malta (17) and Latvia (16 chapters.)

Taking into account the substance of each chapter, Verheugen made the point that "it is quite conceivable" that countries that have concluded fewer chapters have nonetheless advanced further.

He said "the state of play" on each candidate actually meeting the fundamental Copenhagen criteria for admission would be set out in the Commission's progress reports for the year 2001. These will be discussed and adopted at the beginning of November.

Verheugen also told the EP that the next Commission strategy paper would focus on an assessment of the third Copenhagen criterion, implementation of the entire body of EU law, whereas the emphasis so far has been on adoption of the "acquis communautaire." Referring to the negative outcome of the recent referendum in Ireland for ratification of the Nice Treaty of December 2000, providing for institutional adjustments allowing enlargement, Verheugen said the response to "the warning signal" from Ireland should be "getting the message across to the public and checking "growing alienation between Europe's citizens and the European institutions and decision-making processes.

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