Athens News Agency: Daily News Bulletin in English, 02-12-23

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

CONTENTS

[01] Parliament endorses 2003 budget

[02] Cyprus' EU entry without conditions, Verheugen reiterates

[03] Denktash cites 3 demands for Cyprus solution by Feb. 28

[04] UNICE lobbies upcoming Greek EU presidency

[05] Defense minister visits Greek contingent in Kosovo

[06] Latest opinions polls released over the weekend

[07] Minister promises full media access, but no TV, during 'N17' trials

[08] Archbishop on ECHR ruling regarding ID issue

[09] Patriarch receives Athens mayor, delegation

[10] New road linking southern Albania, Greece inaugurated

[11] Gov't forecasts 2.5% inflation rate, 3.8% GDP growth for 2003

[12] Drys proposal approved by EU fisheries ministers

[13] Bodies of 9 would-be migrants recovered off Evia

[14] Two Turks given 10-year sentence for migrant smuggling

[15] UN: ad hoc committees to work without prejudice

[16] Weston sees greater possibilities for agreement

[01] Parliament endorses 2003 budget

Athens, 23/12/2002 (ANA)

Voting in favor of the budget were 156 deputies, with 139 voting against in the 300-member house. Five parliamentarians were absent in the roll-call vote.

The new budget, according to the government, aims to bolster stability, fiscal revitalization in 2003 and foresees growth of 3.8 percent as well as a rise of 5.1 percent each for public sector revenues and spending.

PM cites goals of stability, less taxes, rebukes opposition criticism: Prime Minister Costas Simitis on Sunday defended the tabled 2003 budget as a �difficult budget�, one dealing with the major costs of holding the Olympic Games and one formulated amid an unfavorable international economic situation, although he stressed that it fairly toes the line between expenditures and revenues.

In addressing Parliament shortly before deputies voted on the budget, Simitis said the 2003 budget lowers taxation and at the same time promotes its main targets. In a subsequent roll call vote, 156 MPs voted in favor and 139 voted against, while five deputies were not present in Parliament. The result means approval of the government�s 2003 budget.

�So, austerity is continuing? I cannot understand that when there is an increase in incomes,� the premier said, in answer to earlier criticism by the left.

�Is Greece lagging in terms of indices? Yes, because it was for years lagging. The issue is: are we closing the gap?�

Responding to protests by main opposition New Democracy�s deputies over his last reference, he added: �You say �no�. Then you do not know what you are talking about, you are not arguing correctly; you just want to deceive the Greek people, and we do not agree with that�.

In answer to ND�s charge that a forecast GDP growth rate (3.8 percent) should be bigger (around 5 percent), he pointed to today�s low GDP growth rates in the United States, Germany and the EU average (between 0.4 and 2 percent). �Why doesn�t ND give its advice to the rest of the whole world so that the global recession ends? Its claims of 5 percent are not serious and show a lack of seriousness�.

He also charged that warnings of community support framework funds drying up after 2006 are a �conscious misrepresentation, a lie by the opposition�.

�Does Greece have poor people? Yes, but that does not mean that the lowest income families live in abject poverty. The European statistical indices do not consider the fact that in Greece, as opposed to other countries, there is a large percentage of home ownership,� he said.

In focusing his attack on the main opposition, Simitis took offence with New Democracy�s repeated charges of a �virtual reality� that the government supposedly operates in, saying:

�New Democracy�s interest in the country is virtual, reality is its thirst for power.�

Karamanlis accuses gov't of 'mortgaging' the country's economic future: In his address before Parliament, main opposition New Democracy leader Costas Karamanlis cited what he called several instances of shady contracts with out-of-Greece companies for the next five, 10 and even 15 years, while again charging that the government is �continuing its policy� of presenting a �factitious fiscal picture� and of �mortgaging the economy�.

Specifically, he claimed that from 1993 onwards the central government�s debt increased by 141 percent, stressing also that the government is hiding the real state of the economy and employing �expensive financial tools to deceive Parliament and society�.

Moreover, he charged that since 2000 the government has begun collecting future revenues. In citing what he called an example, he said a finance minister�s decision in 2000 allowed the Luxembourg-based firm Hellenic Securitization to prepay 740 million euros for revenues accumulated by the state-run Deposits & Loans Fund until 2010, with the state paying a 2.6-million commission fee to boot.

Another example he said bolstered his point dealt with the Aiolos and Atlas firms, also based in Luxembourg, who following a decision by the same ministry in October 2001, relinquished future revenues of two billion euros from the 3rd Community Support Framework package until 2007 � along with 20.54 million euros in commission fees.

In closing in address, Karamanlis rhetorically asked what right the government has to tie down national resources for five, 10 and even 19 years, �something that corresponds to five future governments...�

KKE: Communist Party of Greece (KKE) Secretary General Aleka Papariga said the budget simply redistributes national income �in favor of big capital� while also warning of �new, barbarous anti-labor measures� on the government�s drawing board.

She also claimed that the EU is pressing for a new revision to the country�s pension system, while measures to promote part-time work are being promoted via �blackmail�.

In other comments, she said the government, �the oligarchy of capital in our country feel the signals of recession in the Greek economy ... they see that the competitiveness of Greek products in the international market becomes even worse; and that the trade deficit increases...�

Regarding the 2003 budget, Papariga said 545 million euros in tax breaks have been announced for wage-earners and pensioners, at the same time that the personal tax rate is increased by 8.2 percent, along with increases in various indirect forms of taxation the personal tax rate is increased by 8.2 percent, along with increases in various indirect forms of taxation.

Coalition of the Left: On his part, Coalition of the Left (Synaspismos) leader Nikos Constantopoulos said his party does not have any �self-delusions� over the budget, �we are not waiting for, nor do we even demand a budget that solves all the problems in one year.

�Real convergence, in the strict economic sense, is significant. But the issue is whether it will have a social aspect and prospects, something which isn�t occurring, because the government does not touch the issue of redistributing wealth...�

He also charged that wage-earners' sacrifices to push the Greek economy into the �euro zone� were not rewarded.

�With the reduction in interest rates, many ministers spoke of a �Simitis package�. Resources were saved, but again, the �Simitis package� did not reach all. The many were again forgotten by the sender...�

Finally, he called the 2003 budget �unreliable and lacking transparency�, charging that hidden debts were telling, along with debts by state-run enterprises, new loan burdens, and costly defense contracts. He also said the budget promoted �social divergence instead of convergence�.

[02] Cyprus' EU entry without conditions, Verheugen reiterates

Athens, 23/12/2002 (ANA)

Verheugen also stressed that this course has been decided since the 1999 Helsinki EU Summit, while adding:

�We opened the prospects for Cyprus� EU accession, even with-out a solution to the Cyprus problem. Since then it was clear what would happen: Either we would have a solution and would include a united Cyprus, or, we would not have a solution and we would admit Cyprus as is. The only risk from this strategy was the possibility of a negative response by the Greek side to the United Nations� efforts. This did not occur.

�Quite the opposite, the Greek side cooperated in a completely productive manner, with flexibility and a great deal of intelligence. What reason, therefore, would the �15� have to punish the Greek Cypriots for something that was not their fault? I must tell you that in Copenhagen the discussions about Cyprus finished in a matter of minutes, as the situation was completely clear. The decision, therefore, exists and is not connected to any type of conditions.�

Asked if the new Turkish government has the power to dislodge Turkish Cypriot leader Rauf Denktash from the ongoing deliberations, he said:

�...I must repeat what I have said on many occasions, namely, that the population group that will benefit the most from Cyprus accession into the EU are the Turkish Cypriots. They are the ones who will lose the most, of course, if they do not enter. Without the accession of the entire island, the Turkish Cypriots� situation will worsen. They will live in a country without a future. That is why the Turkish Cypriots� opinion has changed.�

Asked why the EU leaders did not �reprimand� Turkey for a lack of volition to solve the Cyprus problem but instead set a date for examining Ankara�s accession prospects, Verheugen said he believes that would have been unwise, as the Turkish government in the end wanted such a solution.

�There was not enough time for Turkish leadership to persuade (Rauf) Denktash. We left the door open for Turkey, maybe we�ll open it a little more. However, the same (criteria) that apply for the other candidate-states apply for Turkey. There is no chance for accession negotiations to begin if the Copenhagen criteria are not fully implemented,� he stressed.

Finally, he said it would have impossible to achieve the latest progress without PM Costas Simitis and Foreign Minister George Papandreou.

[03] Denktash cites 3 demands for Cyprus solution by Feb. 28

ANKARA 23/12/2002 (ANA � A. Abatzis)

Denktash warned that, otherwise, he will propose a �relation-ship� between the European Union and a �Turkish Cypriot component state� that will join the Union �when Turkey joins�.

In an interview published in the Turkish daily �Milliyet�, Denktash, who is still recuperating from recent heart surgery, also clarified that a strict �bi-zonal regime� precludes the return of Greek Cypriot refugees back to their homes in the currently Turkish-occupied areas of northern Cyprus.

In rejecting a recently tabled formula for returning territory to the internationally recognized Cyprus government, Denktash said the tabled Annan plan map is �unacceptable�, saying tracts of land adjacent to the cease fire line on the island should instead be turned over along with territory administered by the United Nations� peacekeeping force, which he claimed was around 3 percent of the island republic. Moreover, he only mentioned that the occupied town of Varosha, adjacent to the ghost city of Famagusta, could be returned.

In terms of his demand for a jointly administered presidency, he said a newly established �presidential council� would also satisfy him, �and as this would be based on two component states and two nations, it must be permanent�.

Finally, in terms of a return of thousands of Greek Cypriots to their ancestral homes in the Turkish-occupied territories, the self-styled president of the Turkish Cypriot pseudo-state in the north said a return of 28 percent of the refugees is a �mistake � because we cannot transfer the same percentage of Turkish Cypriots to the Greek side. The principle of a bi-zonal state must apply, as set by the 1977agreement.�

The international recognized Cyprus government, which controls roughly two-thirds of the east Mediterranean island, earned a long-awaited invitation by the EU last week to join the 15-member bloc during the landmark Copenhagen, whereas the Denktash side garnered widespread international criticism, including the new government in Ankara, for its intransigent and unproductive stance, while vigorous protests against the veteran T/C leader erupted in the occupied areas.

[04] UNICE lobbies upcoming Greek EU presidency

BRUSSELS 23/12/2002 (ANA)

In the document, entitled Lisbon Strategy/Status 2003, �Time is running out, action needed now�, UNICE sends a message to the EU presidency on behalf of its organizations.

Business leaders confirmed that the Lisbon Strategy is the right route to enhance competitiveness and dynamism in Europe. However, the �implementation delivery gap� remains, a press release by UNICE reads.

In a letter to the upcoming EU Council President, Greek Premier Costas Simitis, UNICE presented its assessment and conclusions to the Greek Presidency. Further, the presidents of UNICE will personally bring the business message to him Jan. 28 in Athens and at the Spring Summit in March in Brussels.

[05] Defense minister visits Greek contingent in Kosovo

Athens, 23/12/2002 (ANA)

Taking advantage of the coming holiday period, the minister visited the �Alexander the Great� and �Rigas Fereos� camps in Kosovo and congratulated officers and NCOs for their peacekeeping efforts in the region.

[06] Latest opinions polls released over the weekend

Athens, 23/12/2002 (ANA)

According to results published in the Sunday edition of �To Vima� newspaper, main opposition New Democracy was preferred by 39.1 percent of respondents, as opposed to 33.5 percent for ruling PASOK. Conversely, Prime Minister Costas Simitis was given a 38.9 percent figure in the question of �most capable prime minister� to 36.8 percent for ND leader Costas Karamanlis.

The survey, conducted by the Kappa Research firm, gave the Communist Party of Greece 5.4 percent; 3.1 percent for the Coalition of the Left (Synaspismos); 2 percent for out-of-Parliament DHKKI and 2.7 percent for the recently established LA.O.S party. Moreover, 53 percent of respondents said they believed ND will win the next general elections.

In other queries, 49.5 percent of respondents said they believe the total situation in the country worsened in 2002; 22.9 percent said things improved, whereas 27.2 percent said things remained the same.

An opinion poll found in the Sunday edition of �Eleftherotypia�, meanwhile, echoed the previous survey in terms of Simitis� edge over Karamanlis, with 44.4 percent of respondents in this poll giving the nod to the premier and 36 percent opting for Karamanlis.

The Metron Analysis conducted the Eleftherotypia poll.

On his part, government spokesman Christos Protopapas appeared pleased with the results, saying the people are expressing an increased trust for Simitis.

[07] Minister promises full media access, but no TV, during 'N17' trials

Athens, 23/12/2002 (ANA)

Speaking in Parliament on Saturday evening during debate on the 2003 budget, Justice Minister Philippos Petsalnikos said 120 spots will be reserved in the courtrooms for the �N17� trials, with an adjacent hall expected to hold 250 reporters.

However, Petsalnikos reiterated the government�s position that live coverage of court trials does not improve the justice system�s proceedings, rather it injects negative aspects � echoing provisions in a recently passed bill.

Media speculation has pointed to the trial occurring in a specially renovated hall at the Korydallos prison, where all of the 'N17' defendants are being held.

[08] Archbishop on ECHR ruling regarding ID issue

Athens, 23/12/2002 (ANA)

The Church of Greece vigorously opposed the deletion of the religion category from IDs, resulting in an unprecedented souring of Church-state relations beginning in mid 2000.

Christodoulos reminded that the Autocephalous Orthodox Church of Greece�s leadership turned to the faithful, who in turn �provided their answer�.

In the aftermath of the government�s decision, the Church organized a massive �unofficial� petition drive to demand a referendum over whether citizens in the predominately Christian Orthodox country had the right to list their religious affiliation on state-issued IDs.

Hundreds of thousands of petition forms, in fact, remain stored in a container outside the Holy Synod�s entrance in central Athens.

[09] Patriarch receives Athens mayor, delegation

ISTANBUL 23/12/2002 (ANA)

Following a meeting with Vartholomeos and an official luncheon, Avramopoulos and the delegation were received by Istanbul Mayor Ali Mufit Gurtuna.

[10] New road linking southern Albania, Greece inaugurated

GJIROKASTER 23/12/2002 (ANA � P. Barkas)

The new highway, costing 13 million euros and financed by the European Union and Greece, also runs near some 30 predominately ethnic Greek villages in the Dropolis region.

In comments to reporters, Nano underlined the excellent relations between the two states, calling Greece a �neighbor and a significant partner for Albania� in the latter�s course towards Europe.

Finally, Nano called on the ethnic Greeks of Albania not to abandon their ancestral homes and for expatriates to return.

[11] Gov't forecasts 2.5% inflation rate, 3.8% GDP growth for 2003

Athens, 23/12/2002 (ANA)

Development Minister Akis Tsohatzopoulos, who made the forecasts, also projected an increase in private sector consumption.

[12] Drys proposal approved by EU fisheries ministers

Athens, 23/12/2002 (ANA)

The quotas, many sharply reduced from this year, were less than initially proposed by the Commission, according to wire reports from Brussels.

A proposal by Drys, unanimously approved by his counterparts, calls for the replacement of fishing vessels under 100 DWT at a ratio of 1:1, old for new. From vessels more than 100 DWT the ratio was set at 1:1.35, new for old.

According a ministry press release, the first fisheries ministers� council during the Greek EU presidency will take place on Jan. 27.

[13] Bodies of 9 would-be migrants recovered off Evia

Athens, 23/12/2002 (ANA)

Authorities are conducting a search of the surrounding sea region where the bodies were discovered, reports stated.

No further information was available at press time. Autopsies are pending.

In an unrelated development, a Turkish-registered fishing boat carrying five people was intercepted near the eastern Aegean island of Kos early Sunday morning, with Turkish authorities later escorting the vessel back towards Turkish waters after Greek authorities contacted their Turkish counterparts.

[14] Two Turks given 10-year sentence for migrant smuggling

Athens, 23/12/2002 (ANA)

The two were arrested on Saturday when a wooden vessel they were piloting ran aground off the island of Evia, resulting in several illegal immigrants drowning. Another 28 illegals were arrested.

[15] UN: ad hoc committees to work without prejudice

UNITED NATIONS 23/12/2002 (CNA/ANA)

UN spokeswoman, Hua Jiang said that the Greek Cypriots and the Turkish Cypriots have held in Cyprus an organizational meeting, chaired by the UN for the two technical committees, which the leaders had agreed to create on October 4 in the presence of the Secretary General.

''The meeting charted the future work of the committees, which will undertake their technical discussions in parallel with the political negotiations and without prejudice to their outcome'' Jiang noted.

He added that the members of the committees plan to meet again on January 7.

The two sides decided to set up the committees in early October and their purpose is to focus on treaties that are to be binding on Cyprus, as of the moment that a settlement comes into force, and also on the laws of the future common state.

[16] Weston sees greater possibilities for agreement

NEW YORK 23/12/2002 (CNA/ANA)

Cyprus question settled.

The US official said that ''everything possible'' needs to be done between now and the end of February to clinch a deal, which can be incorporated in the accession treaty.

''This means an agreement would have to be achieved on something like the timetable, which the SG has outlined which is in essence the end of February in order to commit a referendum in a timely fashion before the accession of Cyprus,'' he said.

Noting that there has been progress towards a settlement, Weston said ''we are going to work to get a settlement now'' and stressed that ''we are dealing in a current different dynamic situation once again related to the EU.''

''We are in a very different period in terms of the external dynamics affecting the possibilities'' of a solution, he said, replying to questions.

In the interview Weston noted that there was a lot of activity in Copenhagen ''which made clear to the new Turkish government about Europe's feeling on the necessity of solving the Cyprus problem.''

''I think it is really reinforced how important is for the EU to see the Cyprus question solved and I think that was beneficial,'' he added.

Referring to the Copenhagen European Summit, Weston noted that Cyprus got its invitation to become an EU member ''without conditions in a straight forward fashion.''

''And that is a positive outcome'', Weston added noting that the US would prefer a solution on the Cyprus problem before Cyprus' accession to the EU.

Replying to questions, Weston said that there were ''a whole series of reasons'' why a solution was not achieved in Copenhagen, ''ranging from a new government in Turkey dealing, to the Turkish Cypriot leader Rauf Denktash's health issues and his absence from Copenhagen''.

''I think the time factor became too much to deal with, the time became too short to deal with'', Weston noted.

Asked whether a solution is possible taking into account the core positions of the two sides, which remain unchanged, Weston said that those views were taken into account in the revised plan submitted by the UN Secretary General on December 10, adding that ''those revisions were designed to accommodate the views of the respective parties involved''.

Weston noted that ''very significant differences between the parties remain'', pointing out however that those differences are smaller than two weeks ago.

Replying to a question whether the two sides' objections are less after the submission of the Annan revised plan, Weston said ''the areas which are focused on are fairly clear-cut''.

Asked whether Annan's Special Advisor on Cyprus question Alvaro de Soto will proceed with a new process, Weston said that it is not a new process, adding that ''it is going to be different things in different areas''.

''It is certainly an activity which is going to make more likely that we get to a settlement'', he noted.

Commenting on the fact that Annan did not travel to Copenhagen Weston said that ''the Secretary General decided when he had to decide, whether or not it would be useful for him to go and he took that decision.''

Weston also praised both Annan's and Alvaro de Soto's work on the Cyprus peace effort.

'' I am repeatedly and continue to be very impressed by the time and attention that he has devoted to this issue to get a solution. So you are not hearing anything but praise about his work and that of his special advisor to get a solution'', he said.

Responding to questions regarding the presidential elections, Weston said that ''elections year is going on for a while and somehow this process keeps going''.

Asked whether he thought the Annan plan would end up like the set of ideas the UN put forward in 1992 by the then Secretary General Boutros Boutros Ghali, Weston said that ''a lot of the good material in the set of ideas is part of the current plan''.

''I think there has been progress, great progress far beyond the set of ideas'', US envoy said.

Asked whether one could impose the solution, Weston said that everybody wants the solution to work.

''Imp

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