Athens News Agency: Daily News Bulletin in English, 02-09-03

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

CONTENTS

[01] Gov't says inflation poses threat to competitiveness, employment

[02] Greece calls for action plan to preserve environment, V. Papandreou says

[03] N17 suspect Savvas Xiros leaves hospital for prison

[04] Gov't: Chrysohoidis not tapped for party secretary, reports 'a fiction'

[05] Interior ministry: Updated voter rolls completed

[06] Germany should make war reparations for Hortiatis, President says

[07] US State Dept. coordinator for the Cyprus issue in Turkey

[08] Gov�t to unveil last package of tax reform plan on Tuesday

[09] PM due in Thessaloniki for TIF inauguration this week

[10] Main opposition leader meets merchants' federation presidium

[11] Merchant Marine minister meets top labor representatives

[12] Thessaloniki mayor backs Tues. boycott

[13] Greece, China seek closer tourist cooperation

[14] Wholesale prices' index unchanged in July

[15] Port of Piraeus to focus on passenger, tourist business

[16] Greek stocks extend losses for fourth consecutive session

[17] Another boatload of migrants intercepted near Symi; Turkish patrols assist

[18] Court rejects suspected terrorist's request for bail

[19] 5th Conference of the Orthodox Church begins in Istanbul

[20] Hannay pledges Britain's support

[21] Chief negotiator with EU optimistic on Cyprus report

[01] Gov't says inflation poses threat to competitiveness, employment

Athens, 03/09/2002 (ANA)

''This phenomenon must not continue,'' Christodoulakis told reporters.

The minister was asked to comment on complaints about a wave of price increases since April that has driven consumer groups to call a boycott of stores on Tuesday.

The groups have also asked the public to briefly turn off the electricity supply in their homes and refrain from using telephones at 2200 hours in another protest on the same day.

In addition, Christodoulakis said that the country needed a long-term exports strategy, as the sector contributed single-digit revenue to the national economy.

Also on Monday, Prime Minister Costas Simitis was quoted as saying that inflation was a major issue, and needed careful handling.

The president of the Association of Greek Industry, Odysseas Kyriakopoulos, told reporters after a meeting with the premier: ''There was an identity of views, which is that inflation is important and that we have to pay attention to it.''

Finally, Development Minister Akis Tsohatzopoulos told reporters that consumers had the right to act when imbalances appeared in the market, in reply to a question on Tuesday's boycott call.

At the same time, the minister said it would be senseless to call a freeze on rates charged by public utilities as markets had been deregulated; and price hikes by the Athens-quoted Public Power Corporation lay within the margin of inflation.

Rounding off drachma figures into euros had added half a percentage point to inflation, higher than a forecast of two tenths, Tsohatzopoulos added.

PM welcomes progress in economy but calls for price restraint: Prime Minister Costas Simitis on Monday welcomed progress in the economy, especially robust growth, but he also called for price restraint.

The premier was speaking at separate meetings with trade groups including the Association of Greek Industry and Association of Exporters of Northern Greece.

The government's economic policy centered on maintaining high growth rates, improving competitiveness, containing inflation and making full use of new technology, Simitis said.

At the same time, the overall state of the economy was good, despite a lasting global recession.

''Reflecting the positive direction of the economy are long-standing growth rates that are more than double the European Union average, and which are not only due to inflows from the EU's Third Community Support Framework package or projects underway for the Olympic Games,'' Simitis was quoted as saying at one of the meetings.

Competitiveness and exports needed toning up, inflation should be contained, and price restraint was required, although recent upward inflationary pressures were circumstantial, he added.

Finally, a new exports strategy should be adopted due to introduction of the euro in January, with business extending beyond goods to services, especially in southeastern Europe, the prime minister said.

Opposition parties blast gov't over price hikes: The main opposition New Democracy party on Monday sharply criticized the government for a wave of price hikes in the consumer market.

''The government has so far been unable to create the right conditions for healthy competition, quality control and legal checks to prevail in the market, so that prices may be restrained,'' the party said in a statement.

In addition, the Coalition of the Left and Progress criticized the government for urging consumers to complain about the price increases, denying responsibility for the phenomenon.

''The spread of inflationary pressures despite a policy of incomes restraint shows that we have inflationary profits and not wage inflation,'' Nikos Constantopoulos, the party's leader, told reporters on Monday.

Greek trade reject criticism of excessive price rises: The National Confederation of Greek Trade (ESEE) on Monday reiterated that any price increases by its members this year have not exceeded the inflation rate.

Speaking to reporters during a new conference, ESEE chairman, Christos Folias, said that a boycott announced by Greek consumer groups for Tuesday, 3 September, was a first sign of reaction and noted that the Confederation was supporting the decision as a "communications move" but not as a sign of protest against Greek trade practices.

Mr. Folias said that ESEE would soon begin a dialogue with consumer groups in an effort aimed to improve consumer confidence in the market and urged for the need to print one and two euro banknotes.

He urged for an enhanced role of the competition committee and said that the public sector was the first to begin price increases after the introduction of the euro currency.

[02] Greece calls for action plan to preserve environment, V. Papandreou says

JOHANNESBURG 03/09/2002 (ANA)

�Pursuant to the World Conference in 1992, the models of non-viable development lead to a serious environmental downgrade and increases in poverty�, the minister said.

�We cannot accept that two billion people on this planet live in absolute poverty� she added.

�Greece believes that the implementation plan to be decided here in Johannesburg should recognize the significance of boosting the institutional scope for viable development on an international, national and local level�, she said.

�As a member of the EU, the first power in developmental assistance world-wide, Greece is resolved to pay its role in the process for assisting developing countries to most effectively improve their economies, their social and environmental policies�, Vasso Papandreou said.

�Finally, I would like to say that Greece is taking seriously into consideration its obligations and commitment before the international community. We have forged a strategy for sustainable development and we are in the implementation process. We meet our global obligations and I reassure you that during the first half of 2003, during the Greek presidency of the EU, we will maintain close collaboration with our European partners toward the materialization of the Johannesburg resolutions�, the minister concluded.

[03] N17 suspect Savvas Xiros leaves hospital for prison

Athens, 03/09/2002 (ANA)

Sometime church mural painter Savvas Xiros, 42, passed through the gates of Korydallos prison just after noon, appearing slimmer than photographs depicted him in the past, slightly limping and wearing special prescription glasses.

He sustained serious eye injuries and almost lost part of his right hand when a makeshift explosive device went off at the port of Piraeus on the evening of June 29. That incident and his subsequent statements to investigating magistrates resulted in a massive multi-felony indictment against him.

According to reports, Savvas Xiros may be placed in a one-person cell in the same bloc as his two brothers, Christodoulos and Vassilis, both of whom have also been charged as members of the lethal urban terrorist group.

''N17'' suspect seen at Piraeus one month before June's botched bomb explosion: A coast-guard officer on Monday told investigating authorities that one month prior to the botched-bomb explosion incident at the port of Piraeus late last June, he had spotted �N17� suspect Savvas Xiros together with another unidentified man at the port surveying the area.

Lazaros Sasloglou, assigned to the port-authority traffic police sector, in his testimony said that one month before the 27 June botched explosion he had approached two strangers staring at two parked police cars with conventional license plates and that after he asked them to leave they questioned him about the security of the area claiming that they were planning to travel and park their car there.

He also said that the two had been previously staring at a nearby office building housing several shipping companies including that of Vardinoyiannis and Livanos, as well as bank offices such as City Bank, Royal Bank of Scotland and ABN.

Sasloglou said that they boarded an unlicensed vehicle, which they claimed belonged to someone else, while to his inquiry the driver�s licenses he replied that he had forgot to take it with him. According to Sasloglou, he let the two men go because he did not have a way to alert the desk about them.

The officer recognized Savvas Xiros as being one of the two men.

The alleged terrorist was gravely injured on June, when a bomb he was carrying to place in a storefront in Piraeus exploded in his hands and was subsequently apprehended by coast guard officers. Xiros is facing a total of eight criminal charges for allegedly taking part in 85 terrorist actions of the murderous ''November 17'' terrorist organization.

On a related note, reacting to allegations made by opposition ND deputy Vyron Polydoras about ruling PASOK party having in the past being the political �husk� of terrorism, government spokesman Christos Protopapas on Monday launched strict criticism against �wandering story-tellers�, as he called them, �who go from TV channel to TV channel making groundless allegations�.

Press ministry criticizes media handling of 'N17' story: Press Minister Christos Protopapas on Monday roundly condemned the handling of the 'November 17' story by certain sections of the media, accusing them of succumbing to sensationalism and entertaining wild scenarios to push up ratings.

He decried what he called 'wandering storytellers' who hopped from channel to channel supporting unfounded arguments regarding the notorious terrorist group and its activities.

''They would be quaint if they were not referring to the very serious affair of terrorism. The phenomenon is becoming dangerous,'' he added.

He also refuted press reports that a car found near the scene of the explosion that injured suspected terrorist Savvas Xiros belonged to the Greek intelligence service EYP, pointing out that it actually belonged to the Pireaus prefectural authority.

Claims such as these, or of supposed links between PASOK and N17, were an unacceptable trivialization of the very important effort to crack down on terrorism, as recognized by all foreign governments, he added.

Finally, Protopapas referred to the allegations of a link between PASOK and N17 made by main opposition New Democracy section head Vyron Polydoras, challenging ND to state clearly whether it supported Polydoras' views or not.

The media's overall handling of the case was also criticized by press ministry general secretary Dimitra Spiliotopoulou in the local paper "Erevna", who said that many of the mass media had been unable to resist the temptation to name names and incriminate unsuspecting citizens, violating their right to a good name and reputation, which was perhaps the most basic element of human dignity.

[04] Gov't: Chrysohoidis not tapped for party secretary, reports 'a fiction'

Athens, 03/09/2002 (ANA)

[05] Interior ministry: Updated voter rolls completed

Athens, 03/09/2002 (ANA)

Following a meeting of a bipartisan committee, Interior Minister said the final number of eligible voters stands at 9,856.453 � a number just less than the 11-million population Greece recorded during a 2001 census, but one that includes tens of thousands of eligible expatriate Greeks and their offspring.

A figure of 9.2 million of eligible voters was given for the previous voter lists.

Skandalidis also said there were 66,000 double entries, which have been detected and noted on voter rolls.

Municipalities, prefectures and first instance courts will begin receiving the updated voters� lists next Monday, whereas they will be displayed over the Internet beginning on Tuesday.

Voters will also be able to find out their specific voting precinct by dialing 1464 after Sept. 23.

[06] Germany should make war reparations for Hortiatis, President says

Athens, 03/09/2002 (ANA)

Stephanopoulos was on a visit at the northern Greece village of Hortiatis, northeastern of Thessaloniki, to attend the events held in commemoration of the Holocaust of the village�s population during the German occupation.

[07] US State Dept. coordinator for the Cyprus issue in Turkey

ISTANBUL 03/09/2002 (ANA � A. Kourkoulas)

[08] Gov�t to unveil last package of tax reform plan on Tuesday

Athens, 03/09/2002 (ANA)

The decision was taken during a meeting between Economy and Finance Minister Nikos Christodoulakis and Deputy Ministers Apostolos Fotiadis and George Floridis.

According to ministry sources the package will include measures for the reform of the income tax system.

The tax reform package will be discussed during a cabinet meeting before its presentation by Economy and Finance minister.

Ministry sources said the measures would include raising the tax-free income to more than 10,000 euros for wage earners and pensioners, increasing tax discounts for every child and a 20,000 euros tax-free for families with three children.

The highest tax factor of 40 percent will remain unchanged while the package is expected to include a reduction of a special consumption tax on fuel for industries.

[09] PM due in Thessaloniki for TIF inauguration this week

Athens, 03/09/2002 (ANA)

The prime minister then had a meeting with the Federation of Greek Industry (SEB) shortly after noon and with the Panhellenic Exporters Association at 14:00.

On Tuesday, Simitis is to head a cabinet meeting to discuss the tax reforms and economic policy, after which he will be making announcements.

On Wednesday morning, the prime minister will visit President of the Republic Kostis Stephanopoulos, returning to his offices for a meeting with the Russian ambassador to Athens at 12:00, while on Thursday he is scheduled to meet Public Order Minister Michalis Chrysohoidis at 13:00.

The prime minister is due in Thessaloniki on Friday for the inauguration of the Thessaloniki International Fair, where he will deliver the keynote address, while on Saturday he will inspect public works in the city, dine with party officials at lunch and meet with Thessaloniki social and business groups in the evening.

On Sunday morning, the prime minister will visit TIF and is due to hold a press conference at 13:00.

[10] Main opposition leader meets merchants' federation presidium

Athens, 03/09/2002 (ANA)

Another aspect discussed at the meeting was the wave of price hikes that has recently been observed.

After the meeting, ND spokesman Theodoros Roussopoulos blamed the government for spiraling prices, saying that its economic policy led nowhere while fuelling inflation and rising prices.

If Prime Minister Costas Simitis was unable to change his policies, he added, he should at least stop toying with workers politically and trying to lay the blame on producers and business, particularly when the government had itself fuelled the wave of price rises through the large public utilities.

ND developmental policy coordinator George Salagoudis accused the government of failing to apply the rules and conditions that led to healthy competition and to enforce checks that would ensure that legality and quality prevailed in the market, so that prices could be restrained and problems avoided.

ESEE president Christos Folias, also a New Democracy MEP, stressed that the laws of supply and demand should determine prices rather than other mechanisms that would need to be monitored by the state. He also stressed that the state could not blame the productive classes when it had been the first to raise prices through public utilities. It was not possible for public utilities to raise their rates while others did not, especially when commerce had provenly raised prices only marginally, he added.

[11] Merchant Marine minister meets top labor representatives

Athens, 03/09/2002 (ANA)

The minister informed the labor representatives about a new law provision to be integrated into the finance ministry�s pension bill, which will be tabled before the Parliament within the next few days.

[12] Thessaloniki mayor backs Tues. boycott

Athens, 03/09/2002 (ANA)

�Thessaloniki�s mayor will also participate in this specific event of resistance, especially against the state, as it is primarily responsible; it�s the one that raised prices at PPC (the power utility), OTE (the telephone utility), the water company, and at the post offices. Let me simply mention that just for rounding off drachmas into euros, the Greek Post Office raised prices by 10 percent,� he charged.

[13] Greece, China seek closer tourist cooperation

Athens, 03/09/2002 (ANA)

The two men discussed expanding cooperation fields and the exchange of visits between tour operators and business delegations from Greece and China.

The two countries are in an advance state of talks to sign a bilateral tourist agreement.

[14] Wholesale prices' index unchanged in July

Athens, 03/09/2002 (ANA)

The wholesale price index had recorded a 0.8 percent decline in the same period last year, NSS said in its monthly report.

The composite index rose 0.7 percent in July 2002 compared with the same month in 2001, while it recorded an average increase of 2.2 percent in the period January-July this year from the same period in 2001.

[15] Port of Piraeus to focus on passenger, tourist business

Athens, 03/09/2002 (ANA)

The minister was inaugurating construction of a new passenger terminal at Piraeus which is to have a capacity of six to eight ferries. The new facility includes two flyovers and extensive parking space, due for completion in June 2003.

[16] Greek stocks extend losses for fourth consecutive session

Athens, 03/09/2002 (ANA)

The general index fell 1.39 percent to 2,099.59 points, extending its decline for the fourth consecutive session.

Blue chip stocks were badly hit, with Alpha Bank falling 2.98 percent, Hellenic Telecommunications Organization off 2.21 percent, Cosmote down 2.18 percent and Coca-Cola Hellenic Bottling off 3.63 percent.

Turnover was a low 70.6 million euros.

The Textile, Food-Beverage and Wholesale sectors were the only ones to end higher (0.57 percent, 0.28 percent and 0.23 percent, respectively), while the Insurance (2.34 percent), Telecommunications (2.0 percent) and IT Solutions (1.91 percent) sectors suffered the heaviest percentage losses of the day.

The FTSE/ASE 20 index for blue chip and heavy traded stocks fell 1.52 percent, the FTSE/ASE MID 40 index eased 0.68 percent, while the FTSE/ASE SmallCap 80 index dropped 1.04 percent.

Broadly, decliners led advancers by 225 to 84 with another 43 issues unchanged.

The most heavily traded stocks in value were Hellenic Telecommunications Organization, Viohalko, Sex Form, and Coca-Cola HBC.

Derivatives Market Close: Turnover at 76.2 mln euros Monday

Equity Index Futures: