Athens News Agency: Daily News Bulletin in English, 02-12-12

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

CONTENTS

[01] FM Papandreou says progress for a Cyprus settlement difficult

[02] Athens optimistic Cyprus will enter EU without 'asterisks, conditions'

[03] Athens sees 'improvements' in revised Annan plan

[04] Prodi says Commission ready to conclude Cyprus' EU negotiations

[05] Cyprus resolution in Copenhagen ''unlikely'', German sources say

[06] Copenhagen ready to host Cyprus talks, Rasmussen says

[07] Danish PM addresses letter to counterparts on opening summit

[08] Main opposition leader departs for EPP summit in Copenhagen

[09] Protest rally against Annan's Cyprus plan held in Athens

[10] 35 Turkish war planes infringe on Athens' FIR, violate Greek airspace

[11] DM discusses Aegean incidents with Turkish counterpart

[12] PM and public order minister discuss ongoing terrorism investigation

[13] Erdogan meets in Washington with Avramopoulos, Sen. Sarbanes

[14] Interior minister seeks immediate trials in six high-profile graft cases

[15] Parliament President meets with Cypriot Students' Union

[16] EU says Olympic Airways must return 194 million euros in state funds

[17] Palacio details Commission's decision on

[18] JBR Hellas-Horwath compares Greek, European hotels

[19] National Bank of Greece becomes official sponsor of Yugoslavia's Olympic team

[20] Most Greeks see upward revision of prices in euros

[21] Labor Minister Reppas holds talks with British counterpart Smith

[22] Stocks rise for second straight session

[23] Greece, Italy to follow ''common line of action'' on Olympic issues

[24] Italy to return piece of Parthenon frieze to Greece

[25] Greek, Italian culture ministers present new cultural multifunction space

[26] Concern over decrease in number of grant asylums given to refugees in Greece

[27] Event held in Austria on mass media in southeastern Europe

[28] Alleged ''November 17'' terrorist group member requests mixed jury trial

[29] N17 suspects Koufodinas, Sotiropoulou wed in prison in civil ceremony

[30] Reduced sentences for air traffic controllers in 1997 Aerosweet plane crash

[31] It's raining...fish!

[32] Greek, Turkish FMs send letter to UEFA president on joint bid to host Euro 2008

[33] President Clerides arrives in Copenhagen

[34] Clerides: Accession and solution are two different issues

[35] UN hope Copenhagen to provide deadline for Cyprus agreement

[36] UN envoy flies to Copenhagen

[01] FM Papandreou says progress for a Cyprus settlement difficult

COPENHAGEN 12/12/2002 (ANA - Ch. Poulidou / M. Spinthourakis)

Papandreou was speaking after a meeting in the Danish capital between Greek Prime Minister Costas Simitis and Cyprus President Glafcos Clerides on the eve of the two-day EU summit, expected to endorse the EU entry of ten candidate countries, including Cyprus.

The minister said the three landmarks of primary interest to Greece are Cyprus' EU accession within the framework of the EU enlargement, the settlement of the Cyprus problem and Turkey's European course, noting that they are three matters which are not linked but are related and create a common dynamic.

Present at the Simitis-Clerides meeting were Papandreou, Cyprus Foreign Minister Ioannis Kasoulides and Cyprus government spokesman Michalis Papapetrou.

Following his meeting with President Clerides, Prime Minister Simitis met with Cypriot political party leaders accompanying Clerides in Copenhagen.

On his part, Cyprus government spokesman Papapetrou said he was not ''particularly optimistic concerning a Cyprus settlement in the near future'' because of the recent statements made by Turkish Cypriot leader Rauf Denktash and Turkish officials.

Addressing journalists after the two-hour Simitis-Clerides meeting to review Cyprus' EU accession course and efforts for a political settlement, Papapetrou said that Turkey ''has not shown the necessary political will for a Cyprus settlement.''

This development, Papapetrou added, does not bend the determination and readiness of the Greek Cypriot side for an agreement to be reached in order to end the division, occupation and stagnation in the country.

Papapetrou said that under present conditions and ''if talks are going to take place, these talks will be proximity talks'' and the representative of the other side ''will be the one appointed by the Turkish Cypriot community.''

Regarding the island republic's EU accession, he said that he hoped for ''a clear-cut entry.''

Meanwhile, UN Secretary General Kofi Annan expressed his reservations over the possibility of an agreement being reached between the Greek and Turkish Cypriot sides during the Copenhagen summit, according to Danish Premier Anders Fogh Rasmussen who had a telephone conversation with the UN chief.

[02] Athens optimistic Cyprus will enter EU without 'asterisks, conditions'

Athens, 12/12/2002 (ANA)

Foreign Minister George Papandreou on Wednesday conveyed Athens� optimism vis-a-vis the Copenhagen Summit over the next two days, following a two-hour meeting by the government�s top ministers at the premier�s office.

According to sources, Athens is �cautiously optimistic� regarding the possibility of a political solution to the long-standing Cyprus problem, particularly in light of what the Greek side perceives as �foot-dragging� by Turkish Cypriot leader Rauf Denktash.

Regarding the crucial matter of whether the Union will give Turkey a fixed date for beginning negotiations leading to possible EU accession, Papandreou said the most probable decision will be along the lines of the Franco-German proposal.

According to other reports, Greek Prime Minister Costas Simitis will meet with Cypriot President Glafcos Clerides on Wednesday evening in Copenhagen, as well as with Turkish leader Recep Tayyip Erdogan and possibly with new Turkish PM Abdullah Gul on Thursday.

[03] Athens sees 'improvements' in revised Annan plan

Athens, 12/12/2002 (ANA)

Expressing hope for a fair and viable solution to the Cyprus issue, Protopapas welcomed changes regarding the Turkish settlers in northern Cyprus, the regime of a minimum and maximum limit for foreign forces that would remain on the island after a solution was achieved, the specific map which was submitted and measures for the transitional period.

On questions about the balance of power for the Supreme Court under the plan and its provision for a joint referendum on the solution and EU accession, Protopapas said the Cyprus Republic had the first word on the solution desired and referred to statements by Cyprus President Glafcos Clerides that the margins for further improvements of the plan were limited, though they did exist.

The spokesman also announced a meeting between Prime Minister Costas Simitis and Clerides in Copenhagen on Wednesday and a meeting with the leader of Turkey's ruling Justice and Development Party Recep Tayyip Erdogan on Thursday morning, at the latter's request.

KKE leader: No fundamental differences in revised Annan plan: The changes made to the United Nations blueprint for a Cyprus solution were marginal, Communist Party of Greece General Secretary Aleka Papariga said on Wednesday in comments about the 'revised' plan submitted by United Nations Secretary General Kofi Annan.

"I cannot see any fundamental differences in the new Annan plan. The philosophy with which he approaches the Cyprus issue remains the same," she said.

[04] Prodi says Commission ready to conclude Cyprus' EU negotiations

BRUSSELS 12/12/2002 (ANA - Y. Zitouniati)

Referring to UN Secretary General Kofi Annan's revised plan on a solution to the Cyprus issue, Prodi said the Commission supports Annan's appeal to both the Greek Cypriot and Turkish Cypriot sides to reach an agreement in Copenhagen, taking advantage of the ''historic opportunity'' being presented to them.

On the question of setting a date for the beginning of accession negotiations with Turkey at the Copenhagen summit, he reiterated that ''although he recognizes progress achieved so far by Turkey and commitments undertaken by the new Turkish government, he believes, on the basis of objective analyses, that the country does not yet fulfill Copenhagen's criteria and in its future negotiations what applies to the other candidate countries should be observed.''

Commenting on the Franco-German proposal on setting a date for the beginning of EU-Turkish negotiations on conditions in 2005, Prodi said that according to information he has the EU's Danish presidency is examining the submission of a compromise proposal.

''My message for Copenhagen is very simple. Enlargement, as a target, is very important and it should not be jeopardized by last-minute inflexible positions or by the promotion of very special interests,'' Prodi said.

[05] Cyprus resolution in Copenhagen ''unlikely'', German sources say

BERLIN 12/12/2002 (ANA - P. Stangos)

The same sources, also considered as a ''given'' that Cyprus is included in any event in the ten candidate countries for accession, which will be called to enter the Union during the Copenhagen Summit.

The resolution of the Cyprus issue with the signing of the founding agreement between the Greek and Turkish Cypriots and the signing of the agreement on the Euroforce, are not preconditions for Cyprus accession to the Union, from a legal stand point, nor is the provision of a binding timetable for Turkish accession negotiations initiation, the sources said during an informal briefing of the press ahead of the Copenhagen Summit.

''A positive development on those problems, will effect significantly the decision on the date (for Turkey), but those issues are not connected from a legal stand point,'' they said, adding ''Helsinki stands (as far as Cyprus is concerned) and in the event that an agreement is not reached, the southern portion of the island (republic) will enter the Union, based on the fact that we are talking of an enlargement that includes 10 candidate states''.

[06] Copenhagen ready to host Cyprus talks, Rasmussen says

COPENHAGEN 12/12/2002 (ANA - M. Spinthourakis)

In fact, Rasmussen made public the communication after the Summit of the European Liberals Party that took place here, saying that the necessary facilities would be provided.

The Danish premier also stressed that the European Union clearly prefers the accession of a unified Cyprus, underlining, however, that the resolution of the Cyprus issue is not a precondition for the accession of the island republic to the Union.

Speaking of his telephone conversation with U.S. President George Bush, the latter requested that the Union send a positive clear message to Turkey concerning its European prospects. ''We will do our utmost to support the reform process in Turkey but at the same time, I stressed that according to the rules of the EU a candidate country must fulfill certain political criteria to get a date for the start of accession negotiations,'' Rasmussen noted.

''I will not be pressured, but of course I listen carefully to those who offer me good advice. President Bush is well aware of the fact that this is a European decision,'' he added.

[07] Danish PM addresses letter to counterparts on opening summit

COPENHAGEN 12/12/2002 (ANA - V. Demiris)

Danish Prime Minister Anders Fogh Rasmussen, in a letter to his EU counterparts, stressed that ''the main issue at the dinner with which the Council's work will begin tomorrow night is enlargement, as to which the presidency has the ambition of achieving an agreement. We should also decide on the next step of the Turkish candidacy.''

The Danish prime minister expresses the hope that the summit will end on Friday night, but notes the possibility of work being extended over the weekend ''if this is considered necessary to achieve necessary results.''

Presenting the summit's program, Rasmussen said that at 19.00 on Thursday Assembly President Valerie Giscard d' Estaing would present a progress report on the Assembly's work.

At 20.45 the heads of state and government and foreign ministers will attend separate working dinners. Developments on the Middle East issue and in the Balkans will be discussed during the foreign ministers' dinner.

On Friday morning at 10.00 the Council will hold talks with the European Parliament president, while as of 10.30 onwards the discussion will focus on the summit's conclusions.

During the 15 leaders' luncheon (at 13.15), the issue referring to the operation of the Ministers' Council will be examined, while during the foreign ministers' luncheon (due to take place at the same time) ''developments in Iraq and the European army'' will be probed.

At 15.00 the European Council will reconvene and also discuss arrangements on remedying harm created by the sinking of the tanker ''Prestige.'' At 17.00 the ''15'' will meet with the leaders ''of all candidate countries that are ready to complete negotiations.''

This meeting will signal the end of accession meetings, while at 17.30 the ''15'' will meet with the leaders of the remaining candidate countries.

At 17.45 a brief ceremony with a family photograph of the ''25'', European Parliament presidents and the European Commission, as well as the Council's secretary general, is anticipated.

At 21.00 the European Council president will give a dinner for the leaders and foreign ministers of the ''25'', with the topic of discussion being ''our common future.''

[08] Main opposition leader departs for EPP summit in Copenhagen

Athens, 12/12/2002 (ANA)

On Thursday, Karamanlis is to meet Cyprus President Glafcos Clerides for talks on the revised blueprint for a solution submitted to the two sides on the island by United Nations Secretary General Kofi Annan.

After a meeting at ND headquarters on Wednesday morning to discuss the revised plan, ND spokesman Theodoros Roussopoulos said the changes made were marginal and that the plan still contained great weaknesses in terms of creating a functional state and compatibility with EU laws and practices.

He said ND insisted on Cyprus immediate accession to the EU without terms and conditions.

[09] Protest rally against Annan's Cyprus plan held in Athens

Athens, 12/12/2002 (ANA)

At least 600 people responded to the call of the Citizens' Patriotic Movement and of other societies and organizations such as the Coordinating Committee for Support for the Struggle of Cyprus, Solidarity for the Struggle of Cyprus, Cypriot student organizations and citizens' movements.

Banners, Greek flags and slogans filled the area and speakers reiterated their categorical opposition to a future ''which subjugates Hellenism in Cyprus'' and makes the island ''a protectorate of Turkey and the U.S.''.

Speakers included Panteios University professor Christodoulos Yialouridis, the Citizens' Patriotic Movement President Costas Orologas, Cyprus' Ecologists Deputy George Perdikis as well as Greek politicians, former ministers and deputies such as Lefteris Veryvakis, Nikitas Kaklamanis, Democratic Social Movement (DHKKI) party leader Dimitris Tsovolas and Achilleas Katartzis, a member of the Communist Party of Greece's Central Committee.

Addresses were also sent to the demonstrators by the ruling PASOK party's former ministers Gerasimos Arsenis and Stelios Papathemelis.

The Annan plan was also denounced by the mothers and wives of missing persons because it ''ignores the pain for their people''. The Metropolitan of Kyrenia Pavlos was also with them.

[10] 35 Turkish war planes infringe on Athens' FIR, violate Greek airspace

Athens, 12/12/2002 (ANA)

The same sources said that all 35 Turkish fighter-jets responsible for the infringements and violations were intercepted by Greek Airforce jets.

[11] DM discusses Aegean incidents with Turkish counterpart

ROME 12/12/2002 (ANA - L. Hatzikyriakos)

Commenting on the incidents in the Aegean and Turkey's European prospects, he said discussions were held during his contact with Gonul in the framework of the session of defense ministers of southeastern Europe held here.

''I explained to Mr. Gonul that these incidents should stop to enable preconditions for our cooperation to become more substantive in all sectors, including defense. Our discussion was held indeed in a very friendly climate and I think there is good intent on his behalf. However, I explained to him that as long as these violations continue, the climate in defense relations between the two countries cannot be improved,'' Papantoniou said.

Referring to the EU's Copenhagen summit, he said ''we shall wait and see what will happen on Thursday, hoping to have success on all fronts. And on the front of Cyprus' accession, the issue is going ahead regardless of the rest and the issue of a political solution to the Cyprus issue as well, provided Mr. Clerides and Mr. Denktash agree on the revised Annan plan, or a variation of this plan, and on the issue of determining a definite date for the beginning of negotiations between Turkey and the EU".

''I believe that indeed a new page is opening and a new chapter is being created in relations between the two countries, as well as in relations with Europe and regarding peace and security in the region,'' he added.

Papantoniou also met with U.S. Undersecretary Douglas Feith and discussed issues concerning Iraq and bilateral relations.

[12] PM and public order minister discuss ongoing terrorism investigation

Athens, 12/12/2002 (ANA)

Sources said an order was due out in the next few days for the arrest of more people involved in terrorism and that police were still hard at work on the case.

The two men also discussed financial issues related to the police, the fight against organized crime and cooperation with third countries for the deportation of suspected criminals.

[13] Erdogan meets in Washington with Avramopoulos, Sen. Sarbanes

WASHINGTON 12/12/2002 (ANA-T. Ellis)

After his meeting with Erdogan, Sarbanes told reporters that talks focused on the Cyprus issue "now that an important opportunity presents itself for its resolution, and positive prospects are opening up for the region".

He added that everyone was waiting to see what would happen over the next "2-3 crucial days".

Sarbanes, a prominent member of the Senate Foreign Affairs Committee, said that Greek-Turkish relations were not discussed at length because this matter was on a good road "following the Greek side's initiative for constructive bilateral cooperation". Sarbanes described Erdogan as a "strong leader", and said the meeting had taken place at his own initiative.

Avramopoulos, who was in Washington for a meeting of the World Bank and maintains a personal friendship with Erdogan, a former mayor of Istanbul, was also present at the meeting with Sarbanes, and later had a short discussion with Turkish foreign minister Yasar Yakis.

[14] Interior minister seeks immediate trials in six high-profile graft cases

Athens, 12/12/2002 (ANA)

The minister said the request would be made formally in writing on Thursday, in a letter asking for the appointment of a special prosecutor to handle public-sector corruption trials.

He said the six cases, which involved an agricultural department in Ioannina, a Piraeus Prefecture department and town planning departments in Zakynthos, Halkidiki, Thessaloniki and Kapandriti, should be tried using the 'accelerated' procedures allowed by law.

Skandalidis made the announcement after a meeting with newly appointed Public Administration General Inspector Costas Dafermos, who was given the job a few days ago by the prime minister and officially begins his duties as of January 1, 2003.

[15] Parliament President meets with Cypriot Students' Union

Athens, 12/12/2002 (ANA)

According to a press release issued after the meeting, Kaklamanis said to the students that the "accession of the Republic of Cyprus to the European Union, without terms and preconditions - during the upcoming Copenhagen Summit - is an event of the highest importance for Hellenism".

He added that Hellenism in Greece and Turkey should be vigilant and noted that Turkey should understand that its European prospects are on condition that the Cyprus issue is resolved in just way.

[16] EU says Olympic Airways must return 194 million euros in state funds

Athens, 12/12/2002 (ANA)

The Commission said the funds received by OA constituted favorable treatment relative to its competitors and had skewed conditions of free competition on the domestic market.

An EU decision in 1998 had sanctioned the financial assistance given to OA to restructure but imposed 24 conditions that had to be met by the company. Among these was a commitment to create an electronic management system and to submit regular reports showing that it had met the terms imposed.

Most important of all, the company had to carry out a program of structural reforms over 1998-2002, with efforts to control spending and increase productivity, that would make it viable and self-sufficient.

In its decision on Wednesday, the Commission said the airline had failed to meet any of the conditions above and that the company's viability, either on a short-term or a medium-term basis, had by no means been ensured.

Instead, Olympic had had no assets of its own since 1999 and remained in debt, while it had illegally received additional funds from the government since that time, in spite of a Greek government commitment not to give more money to the company.

[17] Palacio details Commission's decision on

OA BRUSSELS 12/12/2002 (ANA - G. Zitouniati)

Responding to relevant questions, Palacio said that she understood the negative effects of this decision as the company covers regions with low traffic that should have air transport due to the country's geographical position.

She added that she also understood the negative effects the decision will have on the employment of the company's personnel, stressing, however that there cannot be special treatment for any company because that violates the rules of healthy competition.

''We are not attacking any company. The only thing the European Commission does is to guarantee equal conditions for all competitors, so as for no one to enjoy a privileged status,'' she said.

Palacio also stressed that ''the problems in the company did not begin with the decision of the Commission, they have a long history and those that did not implement the restructuring programs are responsible''.

Speaking of Greece's possible recourse to the European Court, she said ''it's (Greece's) right, but it should think of the result, because then all the restructuring programs will be reevaluated from the beginning and if 'all is tabled again' then the total sum to be paid back amounts up to 1.59 billion euros''.

According to a press release issued by the Commission, ''based on the decision of 1998 - which in turn reaffirmed an older decision of the Commission in 1994 - Olympic received subsidies for it's restructuring on condition that the 24 mandated terms would have been adhered to. These terms included the creation of an electronic management system and the submitting of reports, which would have certified the adherence to the terms, as well as the implementation of the program''.

The aim of the restructuring program, that covered the 1998-2002 period, was the provision of the capability to Olympic to become viable through the intensification of controls of spending and improving its productivity.

The same press release stressed that ''based on the data at the Commission's disposal, it was discovered that the restructuring program was not set in motion, that none of the fiscal targets was achieved, both on the short-term and on the medium term. Olympic does not have its own funds since 1999 and remains over-burdened with debt. The electronic management system was not set in operation, while the Commission did not receive the regular reports that would have certified the adherence to the terms for the granting of subsidies. More so Greece in contrast with the commitments (Greece) granted new subsidies to the company''.

The Commission, however, added that it did not raise objections to a 19.5 million-euro loan for the company, which was granted by the state to Olympic in February 2002 and did not raise objections for the recompense paid by the state for the company's transfer to the new airport, nor did it raise objections for the lower (8 per cent) Value Added Tax paid on the company's domestic product.

Greek Commissioner Anna Diamantopoulou disagreed with her colleagues, during discussion on the subject and voted against action by the Commission, explaining that the company serves routes that no other company would care to service, while also stressing that thousands of jobs were at stake.

Minister says Olympic Airways to appeal to European Court: Transport and Communications Minister Christos Verelis said on Wednesday Olympic Airways will submit a suspension appeal at the European Communities Court regarding the European Commission's decision.

According to the decision, Olympic Airways will have to return to the Hellenic state an amount that the Commission believes constitutes illegal state subsidization.

Verelis did not conceal his irritation over statements by the relevant Commissioner Loyola de Palacio who spoke of 194 million euros, without this amount being mentioned anywhere in the decision.

As far as the Greek side is concerned, this amount is 41 million euros. That is the money Olympic Airways received from the state in 1998 during the implementation of the second restructuring program for an increase in its share capital.

Verelis' statements make it clear that from the moment the Greek government will officially receive the Commission's relevant dossier of about 70 pages, it has a 60-day time limit to brief it on its actions concerning this decision.

''Olympic Airways will submit a suspension appeal on the decision to the European Communities Court in accordance with the logic of defending its interests. The decision has two parts. The first is specific and speaks of the 41 million euros and the second is vague which speaks of possible subsidizations which, however, are not specified in figures. Olympic Airways will continue to operate,'' Verelis said.

The transport and communications ministry also disclosed that the decision will not affect the process of the airline's privatization, which got underway last Monday, since it concerns the ''new Olympic Airways'' which will be free of the burdens of the previous one.

[18] JBR Hellas-Horwath compares Greek, European hotels

Athens, 12/12/2002 (ANA)

Among the points to emerge from Hotel Study 2002 were the following: