Athens News Agency: Daily News Bulletin in English, 01-09-10

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

CONTENTS

[01] Prime Minister unveils vision of a "strong Greece"

[02] Premier to seek re-election in 2004, calling any other speculation premature

[03] Greek FM calls for speedy settlement of FYROM name issue

[04] Jospin says Cyprus settlement will facilitate its EU entry

[05] New Albanian FM speaks favorably on Greek-Albanian relations

[06] Patriarch Vartholomeos holds talks with Bulgarian

[07] Greek Church donates 250 mln Dr to Serbian church

[08] Greek gov�t to seek drastic tax reform in 2003

[09] OTE to launch mobile telephone operator in Bulgaria

[10] Joint Greek-Russian business activities discussed at TIF

[11] Kassoulides briefs EU foreign ministers on latest developments in Cyprus issue

[01] Prime Minister unveils vision of a "strong Greece"

Athens, 10/09/2001 (ANA)

It was not a speech with figures or detailed references. It was not even a speech with economic "news", which had been announced in the past few days. It was a speech with a deliberately strategic nature, with a clear aim ahead of a PASOK ruling party congress next month: To present a vision to modernize Greece, in a cohesive and political way, as a realistic one-way road to today's globalized economy and at the same time as a true evolution of a socialist vision for a fair society.

The strategy presented by Prime Minister Costas Simitis for the current and future course of the country, is based in four axis: economic stability emphasizing in low inflation and high fiscal surpluses, growth combined with social cohesion, boosting business activity and strengthening the country's productivity.

Having in mind criticism, by left wings in and our of his PASOK party, over a relaxation of economic policy, Mr. Simitis stressed that "our principles are not negotiable and that any deviation from them would mean a return to stagnation, uncertainty, low or even negative growth rates in the real economy, to the real and social deviation, to the country's marginalization".

It was a clear message that derailing the "train" of modernization with a social face would have great consequences.

The Prime Minister seeked to send a message that the government's current policy was not fragmented, or just administrative, or tired, as frequently accused by the opposition, but that it had a beginning, middle and an end.

"Our principles, but also the stability and efficiency with which we implement our economic policy, show the depth of our program, the cohesiveness of our position, the modern political, economic and social proposals that we bring into action," Simitis said.

The premier referred to a "new social state" and a "new growth leap". He said that the government was promoting "an economy adjusting to market rules and to the demands of the consumer-citizen, but at the same time defining behavior rules in the market, combatting the unlawful concentration of wealth, restraining greed and distributing all growth-related benefits to its citizens".

Simitis noted that Greece would adopt the euro currency in four months, opening a new chapter in the country's history, while entering the eurozone with the third highest growth rate in the European Union.

"Growth rates are higher than the EU average for the sixth consecutive year, helping to close the gap in the living standards between Greeks and the average European."

Presenting his economic policy for 2002, Simitis said that "only those countries that have stabilized their economies and completed their structural reforms are moving steadily to a growth path".

"Economic stability must be long-term and our adherence to macro-economic stability is granted," he said.

Simitis said that the government would define its tax reform proposals next year aiming to more equally distribute tax bur-dens, strengthening business competitiveness and simplifying the tax system.

"Inflation remains a national concern and our medium-term target is to follow the average EU rate to avoid affecting the competitiveness of our country's products and services". He noted that structural reforms promoted by the government were aiming to boost competitiveness in the market and to contain inflation.

"We cannot have social policy only with redistributing the national product. We have first to increase our national product, otherwise we deal only verbally with poverty."

"Our progressive government believes in a two-way relationship, the synergy between economic growth and social cohesion through a virtuous cycle of mutual assistance," he said.

"We have to persist in seeking structural reforms to ensure the continuation of high growth rates even after the end of community funds' inflows in Greece," Simitis said.

Real wages in Greece rose an average 2.3 percent annually in the period 1994-2000, up from a 0.5 percent average increase in the EU over the same period. "Social policies would be further promoted in the future, with spending on social protection expected to rise by 40 percent in the period 2001-2004, compared with an accumulated 11 percent increase in inflation."

Simitis urged businesses to increase their social responsibility towards their workers and the environment by publishing social activity reports along with their financial reports.

Referring to the social security system, Simitis said "we have to solve this problem now through an effective dialogue with all parties, seeking wider consensus."

The country needed the creation of a favorable business climate to promote new company set-ups, mainly small- and medium-sized, and to attract domestic and foreign investments.

"Unemployment is an important problem and our wish is to see it fall further," Simitis stressed. Unemployment will be effectively combated not with the creation of jobs by the state but with the creation of quality job positions in the private sector, he said.

The premier's vision to enhance productivity in the country envisaged raising the product per working hour ratio and the need by Greek enterprises to promote quality-restructuring schemes and to seek innovative ideas.

Simitis also said it would need more efforts in education, health and vocational training to promote new jobs, mainly in the digital economy.

Opposition party reactions to premier's Saturday main TIF address: All opposition parties represented in the Greek Parliament criticized the speech of Prime Minister Costas Simitis at the Thessaloniki International Trade Fair (TIF), delivered on Saturday night.

Main opposition New Democracy (ND) spokesman Theodoros Roussopoulos, in a press release said that "politics means results, not words. Everything else is excuses of the sinful, for the repeated announcements of projects that were never done".

ND deputy George Alogoskoufis said that "the self-indulgent victory speeches of Mr. Simitis were obviously aimed mainly to his own party's audience, in light of the (PASOK party) congress. Mr. Simitis can not speak to the Greek people any more, (the Greek people) who are living in a different reality than the one the premier is presenting."

The Communist Party of Greece's (KKE) press release claimed that the premier disbursed the money of the people to the "capitalist employers", while it allowed "selective burden cuts" for the people, which he will take away through the full commercialization of healthcare, education and increased inflation.

The Coalition of the Left and Progress (Synaspismos) representative Dimitris Papadimoulis said that "Mr. Simitis, self-lauded in a monotonous way, beautified the reality of a Greece, which remains by far at the tail end of the European Union and of a policy that increases the inequalities at the expense of the week".

The Liberals Party, in its press release, stated that the principles policies Simitis outlined have not been achieved despite efforts of the past eight years, adding that the premier did not speak clearly of his aims.

[02] Premier to seek re-election in 2004, calling any other speculation premature

Athens, 10/09/2001 (ANA)

He stressed that his criterion for continuing on as premier was based on the interest of the country and not on just holding on to his post, while he called "premature" any speculation that he might seek the post of the President of the Republic in 2005.

Following his visit to the exhibition's pavilions along with members of the cabinet, the party and deputies, he gave his traditional press conference, stressing that he would seek a "clear, strong solution" within the party during the congress scheduled for October.

Also, speaking on scenarios of his succession, he made it clear that anyone in the party may have ambitions, stressing, however, that this "is an issue for another era," adding that there is no seniority attitude in PASOK that would lead elder members higher in the party by default.

He noted that the party could not go no without renewal, nor can the government continue on without renewal.

He expressed his will to move forward with readjustments and changes, which will strengthen the country, while he defended the social policies of the government.

He called for a strong Greece based on stability, development with social cohesion, enterprising by the private sector and higher productivity.

Speaking on the open issue of the name of Greece's neighboring Former Yugoslav Republic of Macedonia (FYROM), he said that warring in that country makes difficult the process of a resolution.

"I would like to stress, since some people in Greece create an impression that we do not care about this, that the contrary is true. We are very much interested. It should be taken care of, we have said this many times to the Skopje side and we will continue to apply pressure," he said.

Regarding the Cyprus problem and Greek-Turkish relations, the premier said that Greece would faithfully and without deviations implement its strategy, which is based on the policy of pressuring Turkey to follow a course in accordance with the rules in force within the European Union.

He added that these rules would lead Turkey to resolve peace-fully its differences with its neighbors, to implement international law and to contribute to the resolution of the Cyprus problem.

On a different note the premier accused main opposition New Democracy (ND) for its tactics in using issues related to the Athens Stock Exchange (ASE) and for raising issues of the naturalization of foreigners, who, as ND claims, were made Greek nationals to vote for PASOK, altering the election results in 2000.

He said that the text of the prosecutor's report should have been presented during relevant discussions in Parliament over the role of the state investment agency (DEKA), adding that former ND leader Miltiades Evert - who made the existence of the report public knowledge - should explain how he became privy of the report.

He also said that he asked of Parliament President Apostolos Kaklamanis to come in contact with all other parties and publish the report as soon as possible.

As far as the naturalizations are concerned, the premier said, ND used the issue to gain an alibi for losing the 2000 elections, giving, however, reassurances that there will be further investigations to find out if any illegal activities took place in the Greek embassy in Moscow.

Discussing the issue of the government's reshuffle, the premier initially hailed Environment, Town Planning and Public Works Minister Costas Laliotis' decision to run for the post of party secretary, during the October congress.

Regarding the rest of the cabinet, he said that "all ministers work and contribute and when the time comes it is my responsibility to form an even more effective cabinet".

During the press conference, Simitis also spoke of public works projects for Thessaloniki, defending the government's timetables for their initiation and completion.

The premier also addressed the issue of the ongoing legal battle over whether two German state properties in Athens can be confiscated and auctioned off as compensation to relatives of hundreds of civilians summarily executed in 1943 by Nazi occupation forces.

At stake are the buildings housing the Goethe Institute and the German Archaeological Society in Athens.

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

The premier said that the government would await the completion of the legal process, which is still underway.

"The Greek government and I personally have reported that there are certain issues unresolved. The famous issue of the occupation era loan (of Greece to Germany). We cannot discuss these issues while these processes are still in progress. We should wait for the matter of the reparations to close in court, as it will have developed and then discuss it," Simitis said.

Karamanlis terms PM's press conference as "arrogant": Main opposition New Democracy (ND) party leader Costas Karamanlis termed as "arrogant" the traditional press conference given by Prime Minister Costas Simitis on Sunday, following the inauguration of the Thessaloniki International Trade Fair (TIF).

In statements before departing for the US, Karamanlis criticized Simitis that he had the time and left it to go to waste and that he had the resources, more than anyone else, but that he had shared them selectively to a few.

He added: "Simitis spoke for years about numbers, forgetting, however, about people. Now, in view of the congress (of the ruling PASOK party in October), he pretends that he remembered society. He forgets, however, the more than 500,000 unemployed. He forgets the isolation of the Greek prefectures. And he had nothing to say about the crime at the Athens Stock Exchange where 1.5 million people lost their life savings. In order to now cover up this, he slanders Justice."

Karamanlis further accused Simitis of "arrogance", saying that the government was possessed of a "regime mentality", adding that the prime minister "shared out promises to Thessaloniki but that he no longer convinces anyone."

Concluding, the main opposition leader said that "all the lies have an end and this end is approaching."

[03] Greek FM calls for speedy settlement of FYROM name issue

BRUSSELS, 10/09/2001 (ANA - G. Zitouniati)

The presiding foreign minister of Belgium, Louis Michel, responding to Papandreou's request, stressed that "we desire the fin-ding of a solution on the name issue of FYROM, on the basis of UN decisions, because we believe that this will help in the normalization of the situation in the country.'

Addressing the Council, Papandreou, having appealed to the European Union's contribution in efforts being conducted in the framework of the UN for the finding a mutually acceptable solution on the name issue, sent a message to Greece's neighboring country to take advantage of the conjuncture and a new rapprochement "which will take into account the sensitivities of every side."

"We first of all want the settlement of this pending issue, and this is why we put forward the matter both to the EU and FYROM, because we believe that the settlement of the matter will contribute to stability in the region," Papandreou said.

The Greek foreign minister also referred to the EU's financial aid to FYROM during the summit of donors, which is scheduled to convene in October. He noted, however, that "despite the indisputable positive steps which have been taken in FYROM, there were still major difficulties and crucial stages which must be overcome", making mention on the continuation of the disarmament of the Albanian extremists, and the voting of the new constitution by parliament.

The issue of EU - Turkey relations which was on Sunday's agenda was postponed for the next Council meeting in October, given that in the meeting the Belgian foreign minister had with his Turkish counterpart Ismail Cem bore no fruit.

With regard to the Cyprus issue, Papandreou said that it was henceforth "a European matter" and that for the first time the Europeans were closely observing the developments and were assessing the stance by Turkish Cypriot leader Rauf Denktash and were drawing their own conclusions.

Referring to Denktash's refusal to return to the Cyprus peace talks under the auspices of the United Nations, the Greek foreign minister said that pressure would be exerted shortly both on Turkey and Denktash for a more constructive stance.

"The window is open until September 12," said Papandreou, referring to the resumption of the UN-led Cyprus peace talks in New York.

Papandreou, addressing the dinner, underlined that "we cannot speak of solidarity and good neighborly relations as long as the Cyprus issue remains unsolved, and we can neither accept threats by candidate countries."

Cem, who attended the dinner with his counterparts of the other EU candidate countries, claimed that there were no threats by Turkey but that Cyprus' EU accession before a settlement of the Cyprus issue created domestic problems in his country.

Cyprus Foreign Minister Ioannis Kasoulides said President Glafcos Clerides was always ready for talks and that there was no dispute that could not be solved through dialogue.

[04] Jospin says Cyprus settlement will facilitate its EU entry

Athens, 10/09/2001 (ANA)

He added that " a political settlement of the Cyprus question, which we hope for with all our heart, can only facilitate the accession of Cyprus to the European Union."

Jospin, who gave an interview to the Vima Sunday newspaper, said that Greece and France have similar visions for the future and particularly are striving for the successful outcome of three objectives. These are, he said, the construction of a society of solidarity based on a viable and stable economic growth, the completion of the construction of a "democratic European Union, prosperous and strong on the international scene, faithful to its allies but autonomous and capable of action," and the defense of European cultural particularities.

Jospin, who is in Athens at the invitation of his Greek counter-part Costas Simitis, said that the negative consequences of globalization such as economic and political instability and the extension of social exclusion and the increase of the gap between the countries of the south and north, were "real and worrying". He added, however, that "we should not try to obstruct globalization but to check and regulate it". "We should avoid any form of fatalism and intensify our effort for the stabilization of the financial markets, to restrict the consequences of profiteering and regulate the international movement of capital," the French premier added.

Referring to the Balkans and to the crisis in the Former Yugoslav Republic of Macedonia (FYROM), Jospin expressed his concern, stating at the same time his country's determination, along with the international community, to contribute in the implementation of the political agreements under the aegis of the European Union. "Peace in the Balkans passes through their return to Europe, ending with their entry into the European Union," he noted.

Jospin said that he was against changes being made to the internationally recognized borders of the Balkans and noted Greece's valuable contribution in the region.

On Turkey's European prospect, he observed that "it will be able to be strengthened through the implementation of the total political and social values which are valid in Europe. It is up to Turkey therefore to decide to proceed on the road of reform to which it has committed itself to," The French prime minister concluded.

Jospin and Simitis will hold talks on Monday over various EU issues and the latest developments in the Balkans.

French FM to meet Greek counterpart in Athens Monday: French Foreign Minister Hubert Vedrine will have talks with his Greek counterpart George Papandreou in Athens on Monday morning, a Greek foreign ministry's announcement said on Sunday.

Vedrine will accompany French Prime Minister Lionel Jospin during his working visit in Athens.

Jospin will hold talks with Prime Minister Simitis on Monday.

[05] New Albanian FM speaks favorably on Greek-Albanian relations

TIRANA, 10/09/2001 (ANA-I. Patso)

In an interview with the "Korieri" newspaper, Dade underlined that "indisputably, Greece constitutes one of our most important partners in all sectors." Furthermore, she said, these relations become more substantial "given that both the countries are governed by left-wing forces with the same programs".

"Greece has really supported Albania in all its democratic developments and Greece is also a member of international organizations to which we aspire to join," Dade added, noting that "our relations with this country constitute a priority."

The new Albanian foreign minister said that there were also other bonds between the two countries, such as the Greek minority in Albania and the large number of Albanian migrants in Greece who have started to become incorporated in Greek social life through their legalization these past few years by the Greek authorities.

[06] Patriarch Vartholomeos holds talks with Bulgarian

PM SOFIA, 10/09/2001 (ANA - B. Borisov)

According to observers, the aim of the Patriarch's visit is to restore relations between Bulgaria and the Orthodox world.

Following his talks with Vartholomeos, the Bulgarian prime minister said that under the aegis of the Patriarch, "great opportunities are being opened for the Orthodox world."

Vartholomeos on his part, assured of the Phanar's support to Bulgaria�s EU accession course.

[07] Greek Church donates 250 mln Dr to Serbian church

Athens, 10/09/2001 (ANA)

The Archbishop stated this during a dinner, which was hosted in his honor in Belgrade by Patriarch Pavlos of Serbia.

Earlier, Christodoulos, who is on an official visit to the Serbian Church, in an address at Belgrade's Cathedral referred to the help which the Greeks had offered to the Serbs. He also spoke of the suffering of the Orthodox people, stressing in particular that the situation prevailing in Kosovo forces Orthodox Serbians to abandon their homes.

[08] Greek gov�t to seek drastic tax reform in 2003

Athens, 10/09/2001 (ANA)

Addressing an extraordinary meeting of the Chambers' Central Union, Papantoniou stressed the tax reform plans included in the second generation of structural changes promoted by the government. "The plan is expected to begin in one year from now and the new tax bill will be the first fundamental tax bill since 1950," he said.

Papantoniou said the government would continue efforts to complete fiscal restructuring in the country and stressed that its policy, so far, has reduced the country's public debt, as percentage of GDP, to 99 percent from 104 percent two years ago.

He predicted that Greece's growth rates would exceed 5.0 percent in 2004, with inflation below 3.0 percent and increased budget surpluses. Unemployment fell to 10 percent this year, from 12 percent in 1999, and the government hops for more substantial results at the end of its five-year program.

Papantoniou said the government would submit a draft bill to parliament envisaging the implementation of Greek Plan for the Reconstruction of the Balkans, worth 180 billion drachmas.

"The government has completed 26 privatizations so far, from a total of 30 in the program, with only four remaining (ETBA-bank, Olympic Airways, Skaramanga Shipyards and Helexpo)," he said.

[09] OTE to launch mobile telephone operator in Bulgaria

Athens, 10/09/2001 (ANA)

Speaking to reporters in Thessaloniki, Manassis said OTE's Bulgarian subsidiary GLOBUL would also offer non-contract subscription services from the first day of operation.

Manassis said Hellenic Telecoms was expected to spend around 200-250 million euros - including payment of 145 million euros for acquiring a nation-wide operation license - to expand in Bulgaria's mobile telephone market.

OTE's international investments totalled 1.5 billion US dollars and the organization is currently seeking cost-saving measures, Manassis told reporters.

Commenting on a recent turmoil in the international telecommunications market due to a high cost of developing a third generation mobile telephone system, Manassis stressed that "a third generation is not ready. It has not mature yet. We will stick with the previous generation for the next couple of years and we expect to see for the first applications of 3G after 2004," he said.

[10] Joint Greek-Russian business activities discussed at TIF

Athens, 10/09/2001 (ANA)

At the meeting, held at the pavilion of the World Council of Hellenes Abroad (SAE) at the Thessaloniki International Trade Fair (TIF), agreement was reached for a bridge of communication to open through which new business activities will develop and which will concern joint Greek and Russian enterprises, as well as the creation of substantial prerequisites for the presence of Greek commercial banks in Russia. The first steps are expected to be taken before the visit to Athens in December by Russian President Vladimir Putin.

[11] Kassoulides briefs EU foreign ministers on latest developments in Cyprus issue

BRUSSELS, 10/09/2001 (CNA/ANA)

Kasoulides, attended Sunday a working lunch the 15 EU foreign ministers had with their 13 counterparts from the candidate countries within the framework of the EU General Affairs Council's informal meeting.

Earlier, Greek Foreign Minister George Papandreou briefed his 15 EU counterparts on his recent meetings he held with Cyprus President Glafcos Clerides, Kasoulides and leaders or representatives of Cyprus political parties during his two-day visit on the island, held between 4-5 September.

He also referred to the efforts made by the UN Secretary General and European Union enlargement Commissioner Gunter Verheugen aiming at the resumption of the talks.

Annan's Special Adviser on Cyprus Alvaro de Soto conveyed the invitations to President Glafcos Clerides and Denktash earlier this week, as he concluded an eight-day visit here.

The President has accepted the invitation and will be in New York for the talks on 12 September.

Last year Denktash abandoned the negotiating table demanding recognition for his self-styled regime in Turkish occupied Cyprus before he returns to the UN-led peace talks.

Speaking during the working lunch, Kasoulides pointed out that the European Union as a whole could deal more efficiently with issues relating to external affairs and defense, macroeconomic policy, employment, combating international organized crime and the environment.

Kasoulides returns home early Monday morning.

Cyprus opened negotiations with the EU in 1998 and is considered to be a front-runner as it has closed 23 out of 29 chapters of the acquis communautaire (EU laws and regulations).

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