Athens News Agency: Daily News Bulletin in English, 03-01-09

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

CONTENTS

[01] PM Simitis in letter to Annan pledges Greece's commitment for Cyprus solution

[02] President Bush says submission of Annan plan 'particularly significant'

[03] PM says Turkey a European power since 16th century

[04] FM Papandreou says ME, Euro-Mediterranean partnership & Iraq among EU priorities

[05] FM Papandreou discusses priorities of ministries during EU presidency

[06] Papandreou, chairman of EU foreign ministers, to tour 7 Middle East countries

[07] EU calls on Israel to lift ban on Palestinian officials' movements

[08] Greece reiterates non-involvement in Cyprus' domestic political affairs

[09] Return of Greek-Cypriots and Turkish Cypriots to their properties the most crucial problem for Cyprus� interior ministry

[10] Bulgaria counts on Greek EU presidency on accession progress

[11] 'Europe' magazine dedicates edition on Greece's EU presidency

[12] Romania's EU accession course discussed by alternate FMs

[13] Alternate FM meets with EU's Wallstrom

[14] Premier heads meeting of ruling PASOK's communications committee

[15] Ambassador says Greece to confirm EU as factor of peace

[16] Parliament President Kaklamanis says all people should oppose war in Iraq

[17] FM inaugurates new secretariat for Int'l economic relations

[18] Parliament passes bill extending Greek Ombudsman's brief

[19] Gov't welcomes call for debate on public-sector graft

[20] FM to meet with Iranian counterpart on Thursday

[21] Ocalan trial for illegal entry into Greece indefinitely postponed

[22] Greek gov�t unveils "popular" state bills, measures to combat tax corruption

[23] EU Commission approves Greece's updated stability program

[24] Simitis discusses national economy's future with Christodoulakis

[25] Yiannitsis outlines Greek presidency priorities in London address

[26] Main opposition urges government to pay out family benefit

[27] ND Euro-MP warns of cut in olive oil subsidies

[28] Greek stocks plunge to March 1998 lows

[29] IOC president, commission head in Athens next week

[30] Holiday & Health exhibition in Berne to host Athens 2004 Games

[31] Venizelos presents EU Presidency cultural priorities

[32] Greeks say 2003 worse than 2002, poll shows

[33] Public prosecutor orders inquiry into metro works subsidence

[34] President Clerides to meet Weston on January 17

[35] CoE Secretary-General hopes Turkish Cypriots will enjoy EU benefits

[01] PM Simitis in letter to Annan pledges Greece's commitment for Cyprus solution

Athens, 09/01/2003 (ANA)

In a letter to UN Secretary-General Kofi Annan on January 2, Greek Prime Minister Costas Simitis also pledges Greece's commitment in reaching a comprehensive agreement to the Cyprus problem, on the basis of the relevant UN Security Council resolutions the soonest possible and states its willingness to engage in talks with Turkey and the UN to negotiate the terms of its future commitment to Cyprus.

However, Simitis notes the Turkish side has twice refused to engage in talks with Greece on security issues.

Replying to Annan's letter of December 18 2002, Simitis assures the Secretary-General of Greece's ''strong commitment in reaching a comprehensive, lasting and functional settlement of the Cyprus problem, on the basis of the relevant UN Security Council resolutions the soonest possible.''

Simitis refers to Greece's firm support to the successive UN efforts, ''aiming at the achievement of a just and viable settlement of the Cyprus problem, all over the years which followed the Turkish invasion of 1974.''

For this reason, he says, upon receiving Annan's first document on November 11, 2002, ''we have clearly stated that we can accept it as a basis for further constructive negotiations,'' pointing out that the Republic of Cyprus has the ''main responsibility and competence'' to engage in talks on the different issues and technical details of Annan's proposals.

Noting that Greece, in its capacity of guarantor power, has the responsibility to negotiate the terms of its future commitment in Cyprus ''has already stated its willingness and readiness to engage in talks on this issue with Turkey and the UN. However, as you are well aware of, the Turkish side has twice refused to engage in talks with us on security issues,'' the prime minister adds.

Stressing that Greece shares Annan's view that the momentum, which has been further enhanced by the new development created by the accession of Cyprus to the EU, must be kept up, Simitis says ''nonetheless, in order to reach an agreement by February 28, we believe that the Turkish and Turkish Cypriot side have to engage in the negotiating process more constructively and with good faith.''

[02] President Bush says submission of Annan plan 'particularly significant'

WASHINGTON 09/01/2003 (ANA/T.Ellis)

The statement was contained in a letter accompanying his bimonthly report to the Congress on efforts towards a negotiated settlement of the Cyprus question, covering the period of October 1 - November 30, 2002.

He stressed ''the US remains committed to the UN effort to find a just and lasting settlement to the Cyprus problem''.

''Particularly significant during this period was UN Secretary-General Annan's submission on November 11 to Greek Cypriot leader Glafcos Clerides and Turkish Cypriot leader Rauf Denktash of a proposed basis for a Cyprus settlement'', he added. As in the past reporting periods, he said, ''US officials provided diplomatic support to the process, including Secretary

territory.

[03] PM says Turkey a European power since 16th century

PARIS 09/01/2003 (ANA)

Referring to a statement by former French President Valery Giscard d'Estaing before the European Union's Copenhagen summit that Turkey has no place in the EU, Simitis said ''the European identity can be examined from many aspects, as geographic, political and economic. But I do not agree that there is a religious criterion. Turkey had already been a major European power since the 16th century and the Ottoman empire played a role in the creation of Europe as it is today.''

The prime minister further said ''it would be politically negative for Turkey to be excluded because it can play, together with Europe, a role in the Middle East and central Asia. It is an important partner. Francois I had allied with (Sultan) Suleyman and there was this Franco-Ottoman axis against the Hapsburgs. Mr. Giscard d'Estaing forgot that it was France that brought Turkey into Europe. In any case, Turkey can be a European Union member.''

Simitis, commenting on domestic developments in Turkey, said ''regarding Turkey's internal development, I believe it has entered, after the November elections, a phase in which answers can no longer be postponed, as was the case for years. It is clear for the majority of the Turkish people that democratization and economic stability are essential preconditions for the country's recovery. In order to achieve this, it should confront the political and military establishment, as well as the economic establishment. Therefore, we must expect conflicts between the institutions. But the pro-European orientation will not be questioned.''

He said the Development and Justice Party, Turkey's ruling party, represents underprivileged social classes which have an interest in change, adding that there is a motive power behind this party which is society's wish to live better.

On the question of whether a solution can be found to the issue of Cyprus by February 28, Simitis said ''all sides, primarily the Greek Cypriots and the Turkish Cypriots should make a very great effort to benefit from the present momentum. If there will be evasion, a solution will not be possible. The decision taken in Copenhagen to accept Cyprus will help cooperation between the two communities considerably. Greece has stressed that the UN secretary general's proposals can lead the conflict to a solution. We must not miss the train.''

Referring to the issue of Iraq and whether the EU can reach a joint stand, particularly between the British and German positions, Simitis said ''it is absolutely possible because at the moment four EU member-states are Security Council members: Great Britain, France, Germany and Spain. I got the impression from discussions I have had so far that there is a will to find a common policy, particularly in favor of a second decision by the Security Council.''

Simitis, focusing on the priorities of the EU's Greek presidency, said ''the first priority is to complete the enlargement process. We shall sign the accession treaty here in Athens on April 16. We want to send the message that Europe is forging ahead. We want a greater Europe and a more united Europe.''

Commenting on whether he supports the European group's unification to harmonize economic policies between countries having adopted the single currency, Simitis said ''I think it is necessary'', adding that ''I shall speak to you with great sincerity: It will be very difficult to have all these issues settled in a Europe of the 25. There is the danger of paralysis if we shall not have a motive force. I do not support a multi-speed Europe, but Europe can only develop with a single nucleus to enable it to continue the course forward.''

Regarding the idea of an EU president being appointed by the European Council, the prime minister said ''the Greek view is that we should have a strong Commission and not have two decision-making poles, the Commission and the Council. Otherwise, the EU is in danger of becoming an intergovernmental union and not heading towards the federal model we desire.''

[04] FM Papandreou says ME, Euro-Mediterranean partnership & Iraq among EU priorities

Athens, 09/01/2003 (ANA)

Earlier in the day the foreign ministry announced that Papandreou will make a tour of seven Middle Eastern countries in early February in his capacity as chairman of the EU Council of Ministers.

The full text of Papandreou's statement is as follows:

''Amongst our priorities in the European Union are the issue that have to do with the Middle East conflict but certainly the developments in the wider region and therefore I think that it is very important that we have direct contact with many of the countries and we certainly as the European Union have a clear desire to further develop close relations with many countries in the region.

''We have the Euro-Mediterranean partnership, further than that we want to see how we can promote peace, democracy, economic cooperation, cooperation in many other areas, of security, migration. These are high on our agenda during our six months and during the Italian presidency also. So I think it was only appropriate that the beginning of the six months I do make this tour.''

''We very much want to see that we can follow--that we can have, a positive development with Iraq, that is the full implementation of the U.N. resolutions and I think this is what will guarantee that we will have peace. So we would certainly like to get that message across. It is not only Iraq, but our general relationship with these countries, therefore it is not a sudden decision (the mission) but something that is high on our priorities at any case.''

[05] FM Papandreou discusses priorities of ministries during EU presidency

Athens, 09/01/2003 (ANA)

Papandreou met with Interior, Public Administration and Decentralization Minister Costas Skandalidis, Culture Minister Evangelos Venizelos, Education Minister Petros Efthymiou and Macedonia-Thrace Minister George Paschalidis.

Skandalidis said his ministry will focus on immigration, administrative convergence, equality of the genders and civil protection.

Venizelos, in outlining the program of his ministry's priorities made special reference to the major discussion on the future of the EU and the European constitution, noting that culture and sport should have their own position in the constitution.

Efthymiou's talks centered on creating a European dimension in southeastern Europe and on technical details for better coordination.

The foreign minister noted that education and culture constitute a basic aspect for the creation of a Europe of common values.

The EU summit in June was at the centre of talks the foreign minister had with Paschalidis who said that Thessaloniki welcomed with hospitality all those who visited the northern city. At the same time, he also noted the Balkan dimension of the summit, as there will also be a meeting with Balkan leaders.

[06] Papandreou, chairman of EU foreign ministers, to tour 7 Middle East countries

Athens, 09/01/2003 (ANA)

Foreign ministry sources said that Papandreou would embark on his Middle East tour with a dual goal: to encourage moderate Arab regimes to mediate with the US to avert conflict in Iraq, and also for the European Union to acquire an accurate and complete picture of the stance that each country will take in the event war operations are launched.

The same sources also said that the Greek EU Presidency's target was that a consolidated position be adopted by the three European members of the UN Security Council, Britain, France and Germany; they said that the three countries could agree on the need for a new Security Council referendum prior to any war action.

This would boost the EU's common position in the area of Common Foreign and Security Policy (CFSP), which is one of the goals of the Greek EU presidency, the sources said.

Greek EU presidency sources maintained that all hope for a peaceful settlement of the Iraq issue had not been ''exhausted'' and that therefore, the EU would encourage peaceful initiatives up until the last minute.

[07] EU calls on Israel to lift ban on Palestinian officials' movements

ATHENS 09/01/2003 (ANA)

In a statement issued in Athens by Greece, which currently holds the rotating six-month EU presidency, the EU criticized an Israeli government decision to block the departure of senior Palestinian officials for a conference on Palestinian reform in London next week.

''The decision of the Israeli Government to block the departure of Palestinian officials for London, as well as the movements of senior Palestinians in general, does not contribute to the efforts made by the international community to carry forward the reform process and to bring an end to the violence,'' the Greek EU presidency's statement said.

''On the contrary, this decision perpetuates hatred and extremism. Hence, the Presidency of the EU calls upon the Israeli Government to reconsider this decision and to immediately lift the ban on the movement of Palestinian officials,'' the statement said.

EU-member Britain plans to host talks on January 14 between Palestinian officials and international mediators on peace and reform of the Palestinian Authority, but Israeli prime minister Ariel Sharon on Monday barred Palestinians from attending the talks after twin suicide bombings the previous day in which 22 people were killed.

[08] Greece reiterates non-involvement in Cyprus' domestic political affairs

Athens, 09/01/2003 (ANA)

"The Cyprus problem is a very sensitive issue and the Greek government clarifies that it has not had, nor will have, any involvement whatsoever in the domestic political developments in the Republic of Cyprus," government spokesman Christos Protopapas said, replying to questions during a press briefing.

Greece feels that Cyprus was being afforded "a big opportunity for resolution of the Cyprus issue on the basis of the Annan plan which must not be lost, and which (opportunity) should in any event be taken advantage of so that, even if a solution is not forthcoming, the Greek Cypriot side will not be to blame".

Papandreou, says Cyprus election developments sovereign state matters: Foreign Minister George Papandreou, referring on Wednesday to latest election developments in Cyprus, said there is no and there should be no comment on domestic developments in Cyprus, adding that they are matters concerning a sovereign state and democratic processes of its own.

On the question of whether the candidacy for president announced by Cyprus Attorney General Alekos Markides will have repercussions on negotiations he is continuing, Papandreou expressed certainty that the political forces in Cyprus have the maturity to promote and utilize the historic opportunity created.

''Of course, every election period can have logical, election tensions, but I am confident the Greek Cypriots - but we also see the Turkish Cypriots as well, the great majority of Turkish Cypriots - want a solution. And I think this is what is leading us all,'' the foreign minister said.

[09] Return of Greek-Cypriots and Turkish Cypriots to their properties the most crucial problem for Cyprus� interior ministry

Athens, 09/01/2003 (ANA)

He said it would involve assessing, compensating and exchanging properties and making arrangements to re-establish Greek-Cypriots to returned properties or Turkish-Cypriots to areas that were now under Greek-Cypriot control.

Panagiotou refused to comment on the repercussions of the blueprint solution proposed by United Nations Secretary General Kofi Annan, noting that negotiations on the plan were still underway. He said his ministry had prepared a number of bills on issues pertaining to its brief that had been submitted to the General Prosecutor in the framework of the ongoing talks on the Annan plan between technical committees.

Regarding harmonization with the body of EU laws and regulations, he said this was almost fully achieved by his ministry in all areas, with the exception of certain bills tabled in Parliament on the operation of slaughterhouses and two on state television and wildlife that were still being processed.

He said all the outstanding legislation would have been voted and implemented by the end of April 2003.

Panagiotou also stressed Greece's "constant and valuable" help in the harmonization process and said that close cooperation between the Greek and Cypriot governments was continuing on all levels.

Turkish FM says Ankara's new Cyprus policy ready by weekend ISTANBUL

09/01/2003 (ANA - A. Kourkoulas/E-Aretaios)

''There is no difference of views between us which could not be overcome. What is necessary is the finding of a solution with which our opinion will also be accepted on the other side,'' he said in statements to the press.

''What we are seeking is a solution in the framework of the United Nations with which Turkish interests will also be protected,'' Yakis added.

According to press sources it became evident during the recent briefing of the Turkish National Assembly's Foreign Affairs Committee that Turkey's position on the Cyprus issue has changed, the Annan blueprint as a basis for a solution to the Cyprus issue has been accepted and ideas of annexing the occupied part of Cyprus, promoted by the previous government of Bulent Ecevit, have been abandoned.

In a related development, the Turkish foreign ministry says that Ankara's policy on the Cyprus issue should be corrected and stresses that necessary consultations are underway.

''There is a need to correct the policy (on the Cyprus issue),'' foreign ministry spokesman Yusuf Buluc said, adding that the Annan proposals constitute a new and important element in the process of resolving the Cyprus issue.

Buluc said in reply to a relevant question that there is no difference in views between the Turkish government and Turkish Cypriot leader Rauf Denktash and that a Turkish foreign ministry delegation is in the occupied part of Cyprus discussing the Annan proposals with Denktash.

According to an Athens News Agency dispatch from Rome, Denktash gave an interview to the newspaper ''Republica'' in which he criticizes the leader of Turkey's ruling party Recep Tayyip Erdogan, whom he terms a ''person'' with no authority.

Denktash said he enjoys full support by Turkish Prime Minister Abdullah Gul and Yakis and, referring to Erdogan, said ''statements by Mr. Erdogan caused confusion for some because on the one day he said one thing and on the other something else. We do not look at what persons say but at what the authorities of Turkey say. Namely, the National Security Council with the head of state, the prime minister and the foreign minister. In any case, I was surprised by his words. However, I see no change in his heart regarding the problem of Cyprus.''

[10] Bulgaria counts on Greek EU presidency on accession progress

SOFIA 09/01/2003 (ANA/B.Borisov)

According to Kouneva, Sofia counts on achieving considerable progress in its EU orientation in the first half of 2003 and probably reach a preliminary �close� on the sectors of transport, justice, security, environmental protection and regional policy. She stressed that Sofia counted on Athens� support to push ahead with issues relating to European structural funds assistance to Bulgaria, adding that �From now on, we will all the more often talk about money with our European friends�.

Kouneva said that her country hoped for the Greek EU Presidency to take specific initiatives �so that Bulgaria gets a clear message from the European Commission about the framework of financial support�.

[11] 'Europe' magazine dedicates edition on Greece's EU presidency

WASHINGTON 09/01/2003 (ANA/T. Ellis)

The magazine, which is published by the European Commission's representation in Washington, includes articles on the Greek political scene, the priorities of the Greek EU presidency, main opposition New Democracy (ND) party leader Costas Karamanlis, preparations for the Athens 2004 Olympic Games and to Thessaloniki as a tourist and economic hub of the Balkans.

On political developments, the magazine assesses that the government of Prime Minister Costas Simitis, despite recent opinion polls showing the ND ahead of the ruling PASOK, has shown durability which is due to an improvement in the economy, the major infrastructure works in view of the 2004 Games, the dismantling of ''November 17'' terrorist organization and Cyprus' accession to the EU.

[12] Romania's EU accession course discussed by alternate FMs

Athens, 09/01/2003 (ANA)

Yiannitsis noted that the Greek presidency wants to support negotiations so that Romania achieves its goal of acceding to the European Union, as first outlined in a Copenhagen Summit decision.

�Of course, the goal is not for negotiations to finish in 2007, but to be completed sooner, in 2004, but for this goal to achieved significant progress must be made,� Yiannitsis said.

On her part, Puwak expressed her government�s satisfaction with Athens� consistent support towards Bucharest�s accession prospects, while also lauding Greek-Romanian bilateral relations.

�Today, we had an opportunity to examine a specific agenda of political and technical issues� Our government will decisively accelerate and intensify its efforts so that by the end of 2003 we will receive a positive report from the European Commission regarding Romania�s progress�.

Finally, the Romanian alternate FM said Bucharest also considers the country�s NATO accession as a priority.

[13] Alternate FM meets with EU's Wallstrom

Athens, 09/01/2003 (ANA)

They also discussed developments in the Middle East and the improvement of the European citizens' quality of life after the enlargement.

''There are many common positions, which have to be used,'' Yiannitsis said, while Wallstrom stressed ''the challenge Greece is facing as the EU presiding country, as well as the new countries - members of the European Union concerning the social integration''.

[14] Premier heads meeting of ruling PASOK's communications committee

Athens, 09/01/2003 (ANA)

The committee discussed the promotion of the Greek EU presidency, the confrontation of the everyday problems of citizens and a political response for main opposition New Democracy's communication strategy.

[15] Ambassador says Greece to confirm EU as factor of peace

SOFIA 09/01/2003 (ANA - B. Borisov)

Mantzouranis, outlining the main priorities of the EU's Greek presidency, referred to the timetable for the accession of the 10 candidate countries to the EU, adding that the relevant accession treaty is expected to be signed in Athens on April 16.

The Greek presidency will seek a substantive promotion and deepening of the EU's relations with Russia, Ukraine, Belarus, Moldova and the Caucasus region, as well as with the Mediterranean countries.

Mantzouranis also mentioned combatting international terrorism and joint efforts to avert and resolve conflicts in the world as being among the main axes of cooperation between unified Europe and the United States.

The ambassador said whatever future decisions concerning the possibility of military intervention in Iraq should only be taken in the framework of the principles and procedures of international law by relevant international organizations.

[16] Parliament President Kaklamanis says all people should oppose war in Iraq

Athens, 09/01/2003 (ANA)

Kaklamanis made the statement during the cutting of the ''New Year Cake'' event of the Hotel Chamber of Greece, in reply to a question regarding a report in the Wall Street Journal on Tuesday that he was opposed to the war in Iraq ''possibly to foment the anti-American feelings inside his country.''

Replying, the parliament president stressed that "every person who wants to have a clear conscience should say no to this war, which is declared with cynicism, which will harm the world economy, not however the American one, which has secured energy sources, which will harm primarily the European economy and small countries such as Greece".

To a further question on the reasons why the American newspaper was annoyed by his statements, Kaklamanis said that he assumes that ''they do not want to hear any voice of objection to what they are planning. They feel that they are rulers of the world, rulers of humanity.''

[17] FM inaugurates new secretariat for Int'l economic relations

Athens, 09/01/2003 (ANA)

Loverdos noted that this ''is a good beginning for every Greek extroverted company to have its own home''.

[18] Parliament passes bill extending Greek Ombudsman's brief

Athens, 09/01/2003 (ANA)

Deputy Interior Minister Stavros Benos did not, however, accept a proposal that the authority should also be in charge of protecting citizens from arbitrary action by banks and the stock market but promised to put the matter to the government.

Much of the session was occupied by discussion of the above proposal, submitted on Tuesday by Alekos Akrivakis, which found favor with all sections of the house.

PASOK house spokesman Leonidas Tzannis expressed uncertainty on whether the institution of ombudsman, used internationally to mediate between citizens and public administration, could be extended for use as a tool between banks and consumers.

[19] Gov't welcomes call for debate on public-sector graft

Athens, 09/01/2003 (ANA)

''There will always be problems but immense efforts are being made to operate the rules of transparency and meritocracy,'' he said.

Protopapas also pointed to the 1,000 citizens' advice bureaus and assistance centers that had been set up around the country, an inspection system to monitor symptoms of corruption and a system to ensure fairness in public-sector hiring.

He also announced a new package of measures currently being prepared by the interior ministry.

[20] FM to meet with Iranian counterpart on Thursday

Athens, 09/01/2003 (ANA)

[21] Ocalan trial for illegal entry into Greece indefinitely postponed

Athens, 09/01/2003 (ANA)

Ocalan is accused of entering Greece illegally on January 28, 1999 while fleeing from Turkish authorities.

Another 13 people are accused as his accomplices in the same case, including retired Navy captain Antonis Naxakis, writer Voula Damianakou and her daughter Eleni Vasilopoulou and Ocalan's aides.

[22] Greek gov�t unveils "popular" state bills, measures to combat tax corruption

Athens, 09/01/2003 (ANA)

Presenting the package, during a news conference, Mr Christodoulakis for the first time left the door open for paying retroactive a family allowance to both husbands and wives working in the public sector, saying that the issue (along with the 2003 incomes policy) would be discussed with ADEDY - civil servants' union - at the end of the month.

Commenting on a tax reform plan, the Greek minister noted that it would be completed in the next few months through a series of interventions aiming to integrate taxes in local authorities and to combat corruption phenomena within the tax agency.

Mr Christodoulakis said that tens of employees in the tax agency service were laid off in 2002 on charges of corruption and stressed that combatting corruption was a top priority issue for the government.

The minister said that inspections by SDOE, a financial crimes' squad, would aim at combatting tax evasion and unjustified price increases in the market.

Mr Christodoulakis also unveiled significant changes in the public sector's borrowing program, in an effort to ensure better returns for small depositors.

Under the plan, all physical persons will be exempted from paying a 10 percent tax on state securities' investments, all commissions on state bill auctions will be integrated in the final return of the issue, and adjusting the mechanisms of offering state securities from banks to improve access to small depositors to such issues with the aim to achieve a 20 percent of public offering in each state security issuance.

The government also plans to issue special 12-month savings securities, the so-called "popular" state bills, and to expand the range of financial products offering higher returns compared with the interest paying bank deposits. State bills, paying a nominal return of around 4.0 percent, will be exempt from a 10 percent tax on the condition that holders will keep them until maturity.

The government plans three such issues (February, May and September), totalling 2.5 billion euros. These securities will not be traded in the secondary bond market.

Opposition political parties criticized the government's new measures as not addressing the real problems facing small investors and dealing with corruption in the tax system.

Parties sharply criticize latest gov't measures for economy: Opposition parties quickly vented their criticism of the government�s economic policy on Wednesday, hours after Economy and Finance Minister Nikos Christodoulakis unveiled a package of measures aimed at increasing state securities' returns to savers and combating tax evasion, among others.

Representing the main opposition New Democracy (ND) party, high-ranking ND deputy George Alogoskoufis deputy said, �the government�s ceaseless announcements about changes in the tax system do not convince anyone any more, they simply underline the impasses in the government�s policy.

�Citizens, especially self-employed professionals as well as (owners of) small-to-medium-sized enterprises, know firsthand what the finance ministry�s tax audits mean: Another opportunity for more taxes, and nothing more,� Alogoskoufis charged.

In its press release, the Communist Party of Greece (KKE) said the projected issuance of so-called �popular bonds� was no more than a �deception of the popular masses�.

KKE also said the total value of the �popular bonds� is but a fraction of individual bank deposits, and will simply aggravate the public sector�s loan burden � �with the same depositors called on to cover (them), this time as taxpayers�.

Finally, the Coalition of the Left and Progress (Synaspismos) cited the beginning of a long campaign period with Christodoulakis� announcements, instead of measures aimed at growth and social cohesion.

�Behind this concept of extremely limited returns, the popular bonds, the government is trying to hide its failure on the inflation front�, a Synaspismos cadre said, noting that the annualized inflation rate in Greece was at 4 percent, almost double the �euro-zone� average.

[23] EU Commission approves Greece's updated stability program

Athens, 09/01/2003 (ANA)

Commenting on a European Commission's decision to approve the Greek program, Mr Solbes, however, noted he was cautious over the timetable of achieving fiscal targets in the Greek economy.

The EU commission said that fiscal adjustment in Greece would enhance throughout the stability program's duration helped by expected high growth rates, "a feasible target" as Mr Solbes described.

However, he noted that fiscal adjustment has been delayed significantly in Greece.

Mr Solbes said that following upward revisions by Eurostat, all expected fiscal surpluses in the period 2000-2001 transformed into deficits while Greece's public debt also increased. "This development," he said, "was delaying significantly the starting point of all medium-term fiscal projections."

The EU commission said that according to the updated stability program, Greece would balance its budget by 2005 while public debt would fall to 87.9 percent of the country's GDP in 2006.

[24] Simitis discusses national economy's future with Christodoulakis

Athens, 09/01/2003 (ANA)

Bank of Greece Governor Nikos Garganas also participated in the meeting.

Following the meeting Christodoulakis confirmed that the discussions included the possible fallout from a military conflict in Iraq and noted that ways to confront such an outcome were discussed, which he said they will affect Greece, albeit short-lived.

[25] Yiannitsis outlines Greek presidency priorities in London address

LONDON 09/01/2003 (ANA)

Yiannitsis cited five �fields of interests� for the Greek presidency, including a conclusion of EU expansion and work towards a �Europe of the Future�; reinforcement of development, solidarity and prosperity; balancing freedom and security; renewing Europe�s democracy and boosting international dialogue and cooperation.

He also mentioned that Greece assumes the EU presidency at a favorable time for the country, adding that it has �performed remarkably� in the economic, political and social fields.

�We view the Greek presidency as one factor that could help for one �larger Europe�, a Europe that will balance its economic power and its democratic values with a target to provide prosperity for its citizens and to promote peaceful solutions for problems that occupy the international scene,� he concluded.

[26] Main opposition urges government to pay out family benefit

Athens, 09/01/2003 (ANA)

ND spokesman Theodoros Roussopoulos accused the government of using "party-political and communications tricks" to avoid implementing a Supreme Court decision to pay out the benefits.

The ND meeting focused on the state of the public sector, public-sector hiring and the party's demand for an off-the-agenda debate on state corruption.

Roussopoulos noted that Greek citizens paid the most taxes within the EU for the worst services and accused the state machine of being "hostage" to small and large interests. He said ND proposed the re-founding of the state.

[27] ND Euro-MP warns of cut in olive oil subsidies

BRUSSELS 09/01/2003 (ANA - Y. Zitouniati)

In a relevant press release, ND Euro-deputy Costas Hatzidakis referred to what he said was a written response by EU Commissioner Franz Fischler to a relevant question on the matter.

Hatzidakis stressed that as of Nov. 1, 2003 olive oil produced from olive trees not listed under the specific register will be barred from the subsidies regime. He also claimed that because of a deficient olive crop register Greek authorities are obliged to check 10 percent of requests on-the-spot.

Finally, in citing Fischler, the Greek Euro-MP said the register scheme in Greece will be evaluated once it is ready, which according to a deadline, should be the first half of 2003.

Fischler is the EU Commissioner responsible for agriculture, rural development and fisheries.

[28] Greek stocks plunge to March 1998 lows

Athens, 09/01/2003 (ANA)

Market sources said that a negative climate in international bourses combined with a government decision to issue special savings state securities, depressed sentiment in the Greek market. Analysts expect a flight of capital from bank deposits to state securities to undermine bank stocks.

The general index dropped 2.43 percent to end at 1,726.33 points, with turnover a low 68.7 million euros.

The Textile, Food-Beverage, Wholesale and Holding sectors suffered the heaviest percentage declines of the day (6.56 percent, 4.67 percent, 4.60 percent and 4.34 percent, respectively).

The FTSE/ASE 20 index for blue chip and heavy traded stocks dropped 2.35 percent, the FTSE/ASE MID 40 index ended 2.57 percent lower, the FTSE/ASE SmallCap 80 index plunged 3.84 percent and the wider FTSE/ASE 140 index fell 2.54 percent.

Broadly, decliners led advancers by 330 to 14 with another 10 issues unchanged.

Derivatives Market Close: Turnover at 46.7 mln euros Wednesday

Equity Index Futures: