Athens News Agency: Daily News Bulletin in English, 03-01-31

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

CONTENTS

[01] PM says move by 8 European countries on Iraq does not contribute to joint stance

[02] German gov't welcomes Greek presidency's success in common EU stance on Iraq

[03] 73 per cent of EU citizens believe oil main reason for possible war against Iraq

[04] Greek, Turkish FMs discuss bilateral issues in Ankara

[05] Greek presidency's foreign minister arrives in Turkey

[06] Hungarian PM Medghessy meets with President, ND leader and parliament president

[07] PM tells cabinet meeting Cyprus solution by February 28 extremely difficult

[08] Alternate FM holds talks with Slovakian deputy FM

[09] Greek EU Presidency statement on Serbia and Montenegro

[10] Greek PM's interview to appear in EUROMagazine in Friday's edition

[11] Protopapas: Gov't has never denied corruption in public sector

[12] Greece announces largest ever public investment plan

[13] Christodoulakis criticizes French stance on Stability Pact

[14] Thessaloniki airport expansion project to be completed by 2007

[15] National Bank expects ECB to cut rates in March

[16] Civil aviation workers reject OA's privatization plans

[17] Epirus remains poorest region in EU on basis of per capita

[18] Greek minister visits Fitur 2003 fair in Madrid

[19] Greek stocks move cautiously higher on Thursday

[20] IPC praises Athens for Paralympics preparations

[21] European conference on the environment to be held in Athens in March

[22] Prince Andrew lays wreath in memory of murdered British military attache

[23] Israeli & Palestinian Ambassadors to attend debate on Middle East peace process

[24] Protests in front of Greek embassy in Belgium for poisoning of animals

[25] Gov't to order tough fines for maltreatment of cats, dogs

[26] Festival of Athens announces program for this summer

[27] De Soto says no change in talks' procedure

[28] Britain believes crucial opportunity has arisen for Cyprus

[01] PM says move by 8 European countries on Iraq does not contribute to joint stance

Athens, 31/01/2003 (ANA)

''The way with which the initiative by the five EU member-states and the three candidate countries was taken on the issue of Iraq does not contribute to the joint handling of the issue,'' he said in a written statement.

The prime ministers of Britain, Spain, Italy, Portugal, Hungary, Poland, Denmark and the Czech Republic co-signed an article published Thursday in several European and US newspapers calling for Europe to back the US in enforcing UN resolutions on Iraq, and warning that if the UN Security Council failed to secure Saddam's adherence to Resolution 1441 it would lose its influence and credibility.

Simitis added that ''the EU is aiming at having a common foreign policy (and) consequently an understanding is also necessary on the issue of Iraq, as precisely was the case at the General Affairs Council on Monday 27 January 2003.''

The prime minister further stressed that ''the presidency will continue to work for a joint stance.''

Earlier, government spokesman Christos Protopapas said, referring to the initiative, ''the Greek presidency is determined to continue the effort for a joint EU stance towards the problem of Iraq.''

He added that ''the position of the EU was expressed by the unanimous decision taken by the 15, and the EU, more than ever, has the need for a joint stance towards Iraq''.

Protopapas also said ''the EU can be nobody's tail'' and expressed hope that nobody ''from inside the country'' will undermine the Greek initiatives.

Greek FM criticizes declaration by eight European states on Iraq: Commenting on the common letter five European Union member-states, along with three candidate member-states, published on the Iraq issue, Foreign Minister George Papandreou said - after his meeting with Turkish Prime Minister Abdulah Gul on Thursday- that the European Union agreed during last Monday's General Affairs Council on a framework of positions.

''The means that the eight countries followed is outside the processes of the EU and creates the possibility for misunderstandings,'' Papandreou said, expressing, however, his belief that ''it should be made clear that with the common position adopted by the 15, they ask for Iraq's disarmament and support the efforts of (UN inspectors) Mr. Blix and El Baradei''.

Papandreou added that concerning this issue the presidency had very good cooperation with Turkey as well and reassured that it will continue its efforts for a common stance of the European states.

Beglitis: Greek EU presidency 'steadfast on its targets' vis-a-vis Iraq: A Greek foreign ministry spokesman on Thursday said that the Greek European Union presidency remained steadfast on the targets it set at the EU Council of Ministers, consistently supporting the procedure followed within the framework of the United Nations Security Council.

Commenting on the statement signed by the leaders of eight European countries on the Iraq crisis, foreign ministry spokesman Panos Beglitis said ''We recognize the UN Security Council as the sole legitimizing framework for continuing Iraq's disarmament process. We share the same targets with the countries that signed the statement, but this is a move outside the EU framework... It comes as a continuation of the EU's important decision, but it is nevertheless an autonomous move of countries outside the framework of the EU''.

Eight European countries signed a statement that was published on Thursday calling for Europe to back the US in enforcing UN resolutions on Iraq.

Beglitis said that the Greek EU presidency was formally informed about the move by the visiting Hungarian prime minister, Peter Medghessy, one of the leaders who signed the statement, during his Wednesday meeting with Greek prime minister Costas Simitis here in Athens, but did not rule out earlier notification by other EU partners with whom the Greek prime minister had come into contact.

''It would be wrong to assess the move under any terms other than those reflected in the statement'', the spokesman said, adding that there was no coordination within the framework of the EU, nor was Athens asked to back this statement, which, he said, was not in conflict with EU's stance.

''We support the work of the UN inspectors Hans Blix and Mohamed ElBaradei. The disarmament of Iraq is still the target, as well as the enhancement of the role of the UN Security Council. We are firm in our relations with the US, the target is shared with the EU member-states as well as with the candidate countries. We must activate and boost the effectiveness of our decisions'', the spokesman concluded.

PM: EU has underlined Security Council's role in Iraq crisis: The European Union has underlined the importance and primary role of the United Nations Security Council in decisions concerning Iraq, Prime Minister Costas Simitis stressed in his address to the Greek cabinet on Thursday.

According to government spokesman Christos Protopapas, Simitis noted that UN weapons inspectors would be submitting their conclusions at this time and that international pressure was mounting to keep further developments within the framework of the Security Council.

Apart from the EU, he added, it was becoming daily more obvious around the world that no form of action against Iraq, whether unilateral or multilateral, was acceptable unless it was accompanied by a convincing assessment based on facts.

This was stressed by France and Germany, the prime minister told the cabinet, while the United States had responded by saying that they would present evidence which proved a link between Al Qaida and Iraq on February 5.

Simitis also referred to his telephone conversations with British Prime Minister Tony Blair and Italian Prime Minister Silvio Berlusconi and said that both had stressed the need to present arguments in a convincing manner in order to win the support of public opinion.

The Greek premier said there was 'uncertainty about the future' at this phase and stressed that February 5 would show the rest of the developments.

Athens: Greek presidency will persevere for common EU stance on Iraq: ''The Greek presidency (of the EU) is determined to persevere with efforts for a common EU stance on Iraq,'' government spokesman Christos Protopapas stressed on Thursday.

''The position of the EU was expressed in the unanimous position adopted by the 15 and the EU must, more than ever, have a common stance relative to Iraq,'' he said.

He was responding to questions regarding an initiative by eight European countries, who signed a statement calling for Europe to back the US in enforcing UN resolutions on Iraq. Among them were EU members Britain, Denmark, Spain, Portugal, Italy, and candidate states Poland, Hungary and the Czech Republic that will accede to the Community in April.

''In a general sense, the text ...does not go against the decision of the '15','' Protopapas said.

A similar position was expressed by a spokesman for the European Commission in Brussels on Thursday, according to an ANA dispatch.

Asked to comment on the initiative, the spokesman said that the statement reflected the views of those that signed it and stressed that the Commission's position was clear-cut and included the joint position of the '15'.

The Commission believed that war was not inevitable and that every possible effort for a peaceful resolution of the crisis should be made, he reiterated.

He said that EU Commissioner for External Affairs Chris Patten had not been aware of the statement and agreed that a common foreign policy by the EU needed to be further reinforced, while he refused to comment on whether the initiative by the eight countries had created division among the 15 EU member-states.

The initiative was also commented on by the Greek foreign ministry earlier on Thursday.

Foreign ministry spokesman Panos Beglitis said that the Greek European Union presidency remained steadfast on the targets it set at the EU Council of Ministers, consistently supporting the procedure followed within the framework of the United Nations Security Council.

Commenting on the statement signed by the eight European leaders, Beglitis said ''We recognize the UN Security Council as the sole legitimizing framework for continuing Iraq's disarmament process. We share the same targets with the countries that signed the statement, but this is a move outside the EU framework... It comes as a continuation of the EU's important decision, but it is nevertheless an autonomous move of countries outside the framework of the EU''.

Beglitis said that the Greek EU presidency was formally informed about the move by visiting Hungarian prime minister Peter Medghessy, one of the leaders who signed the statement, during his Wednesday meeting with Greek Prime Minister Costas Simitis in Athens, but did not rule out earlier notification by other EU partners with whom the Greek prime minister had come into contact.

''It would be wrong to assess the move under any terms other than those reflected in the statement'', the spokesman said, adding that there was no coordination within the framework of the EU, nor was Athens asked to back this statement, which, he said, was not in conflict with EU's stance.

''We support the work of the UN inspectors Hans Blix and Mohamed ElBaradei. The disarmament of Iraq is still the target, as well as the enhancement of the role of the UN Security Council. We are firm in our relations with the US, the target is shared with the EU member-states as well as with the candidate countries. We must activate and boost the effectiveness of our decisions'', the spokesman concluded.

CoE parliamentary assembly supports peaceful solution in Iraq: The Parliamentary Assembly of the Council of Europe on Thursday supported a peaceful solution to the Iraq crisis, making it clear that under current circumstances ''the use of force against Iraq was not justified''.

By 135 votes against 7 and 4 abstentions, the Assembly approved a resolution calling on the member-states of the Council of Europe to ''escalate efforts to secure Iraq's disarmament through political means and within the framework of the United Nations'' and ''rule out any use of violence outside the international legal framework and without the decision of the UN Security Council''.

The Assembly noted with strong concern that the United States said they were prepared to unilaterally assume military action even in the absence of a clear UN Security Council authorization for the use of force, and called on all member states to ''fully support the international (UN weapons) inspectors, provide them will all the information possible and all the means that would assist them in their work and create the conditions that would allow them to complete their work within a reasonable timeframe''.

Addressing the assembly, Greek deputy for PASOK Kosmas Sfyriou said Greece's position on the issue of Iraq was based on respect for international law, territorial integrity, the principle of sovereignty for each nation as well as respect for human rights and the need to establish peace and stability in the region.

He called on the CoE to contribute to a peaceful resolution via diplomacy, following the letter signed by eight EU member-states that aligned itself with US positions.

KKE, Synaspismos issue statements opposing war in Iraq: The Communist Party of Greece (KKE) on Thursday issued a press release calling the statements of the Greek foreign ministry on Iraq as revealing the ''intentional double-talk'' of the Greek government, which it accused of ''appearing on the one hand that it does not want war and on the other it allows for the justification of war when that is waged''.

It also called on the Greek government to "withdraw the Greek frigate in service at present with the US forces, if it wants to provide evidence of its peace loving stance".

On its part, the Coalition of the Left and Progress (Synaspismos) called the initiative of the 5 European Union member-states and the 3 candidate states as an ''especially negative development'' and stressed that ''this move brings the war closer along with its inestimable effects, as the recent UN report warns''.

Archbishop Christodoulos speaks out against war in Iraq: Archbishop of Athens and All Greece Christodoulos, head of the Orthodox Church of Greece, took a stand against the war in Iraq on Thursday in a message to mark an Orthodox holiday.

Christodoulos accused the "powerful of the earth" of preparing to go to war and to strike fear and terror into the hearts of thousands over disputes between political leaders.

"War comes once again to disturb peace, development and progress, with untold consequences for world peace between nations. Dialogue holds no interest for the strong and human life loses its value before the interests of the weapons industry and arms programs," the Archbishop said.

In other statements on Thursday, meanwhile, the Archbishop lashed out at Greek intellectuals and said they were not independent but subjugated to various interests, whether these were ideological, economic or political.

[02] German gov't welcomes Greek presidency's success in common EU stance on Iraq

BERLIN 31/01/2003 (ANA)

He added that the agreement's core elements ''are to call upon Iraq to implement UN Security Council Resolution 1441 fully and actively as well as to continue and to intensify the inspection regime''.

''The current debate on Iraq shows the importance of a common foreign policy and security policy for the European Union. The strength of the EU lies in its unity. The German government agrees with the Greek presidency that what is now needed is to seek implementation of the common European position in hopes of achieving a peaceful settlement of the Iraq conflict,'' the German spokesman noted.

''We see the declaration of eight European heads of state and government as strongly emphasizing those points that are of importance to the German government: What this involves is the implementation of Security Council Resolution 1441, calling upon Iraq to finally cooperate actively and fully with the inspectors, as well as efforts to achieve a peaceful settlement of the conflict,'' Anda concluded.

[03] 73 per cent of EU citizens believe oil main reason for possible war against Iraq

BRUSSELS 31/01/2003 (ANA - Y. Zitouniati)

The peoples of 30 European nations are opposed to a possible war against Iraq without a previous decision being taken by the UN Security Council, according to the poll carried out between January 21-27 among 15,080 people over 15.

According to the poll, 82 per cent of EU citizens (88 per cent in Greece) do not consider their country's participation in a war against Iraq justified without prior mandate by the UN. The corresponding percentage for the 13 candidate countries is 75 per cent (for Cyprus it is 90 per cent and for Turkey 81 per cent), while disagreement in the case in the enlarged EU of the 25 reaches an average of 80 per cent.

On the question of whether the United States should attack Iraq without prior consent by the UN Security Council, 80 per cent of EU citizens are negative (86 per cent in Greece) and 74 per cent in candidate countries (83 per cent in Cyprus and 88 per cent in Turkey), as well as 78 per cent in the enlarged EU.

Positive opinions for the United States in general amount to 47 per cent of citizens in the EU (25 per cent in Greece), 47 per cent in candidate countries (24 per cent in Cyprus and 23 per cent in Turkey) and 44 per cent in the enlarged EU.

However, 63 per cent of EU and candidate country citizens consider Iraq a threat for international peace (42 per cent in Greece, 43 in Cyprus and 43 in Turkey), while 65 per cent of citizens in the enlarged Europe share this view.

Another point highlighted in the opinion poll is that the overwhelming majority of Europeans desire further joint action in the foreign policy sector (84 per cent at EU level, with Greece coming first with a massive 95 per cent). The corresponding percentage in candidate countries amounts to 78 (84 per cent in Cyprus and 78 per cent in Turkey) and 83 per cent in the enlarged Europe.

[04] Greek, Turkish FMs discuss bilateral issues in Ankara

ANKARA 31/01/2003 (ANA - A. Podimata)

The meeting, which was of a bilateral character, focused in particular on the crisis in Iraq.

In brief statements to the press after the meeting, Yakis said that he exchanged views with Papandreou on closer relations and the further development of relations between the two countries.

''The development and evolution of Greek-Turkish relations is not only in the interest of the two countries, but in the interest of stability and the development of cooperation in the wider region,'' Yiakis said, adding that during talks with the Greek minister the two men ascertained a mutual political will for a ''great future for Greek-Turkish relations''.

Yiakis commented on the meetings that the Greek minister will have with Turkish President Ahmet Necdet Sezer, Prime Minister Abdullah Gul and ruling Justice and Development party leader Recep Tayyip Erdogan. He also said that he and Papandreou will hold talks on Friday at the level of the European Union troika meeting with Turkish officials.

On his part, Papandreou expressed his pleasure for being in Ankara, stressing that Greece supported and supports the candidacy and the European course of Turkey, adding that on Friday talks will include the Greek EU presidency's aims for the neighboring country's next steps.

The Greek minister, speaking on Greek-Turkish relations, noted the great progress made over the past few years and hailed the statement by the Turkish side for ''a new strategic relation between Greece and Turkey''.

''We are certain that we will be able to resolve difficult problems that have divided us historically,'' Papandreou said, adding that the exploratory talks between the two countries should continue.

He also said that he discussed the Cyprus problem with Yakis and the crisis of Iraq, ''which creates concern for the European Union and the International Community'', adding that the Greek EU presidency welcomed Turkey's initiative for the convening of a conference of the region's countries on a ministerial level.

Responding to a question by a Turkish journalist on whether the Cyprus problem will be resolved by Feb. 28, Papandreou said ''we all wish for the resolution of the Cyprus issue,'' a problem that has made Greek-Turkish relations difficult, reiterating the Greek side's support for the Annan plan.

Papandreou also responded to a question on whether there will be new amendments to the Annan plan, saying ''if the two leaders can decide through mutual acceptance certain amendments, so much the better''.

Yiakis, commenting on whether Turkish forces would participate in a war in Iraq, said ''Turkish forces will not enter Iraq to fight, but they may enter in an effort to stop the waves of refugees''.

[05] Greek presidency's foreign minister arrives in Turkey

ANKARA 31/01/2003 (ANA - A. Podimata)

Other key issues would be the revised funding package for Turkey, the Cyprus issue and the crisis in Iraq.

''We are aware of Turkish concerns over the prospect of war,'' Papandreou said and reiterated that every effort should be made to ensure the implementation of Security Council resolution 1441 and resolving the crisis in a peaceful way.

Shortly before his departure, the foreign minister had a last-minute meeting at Athens airport with US Ambassador to Athens Thomas Miller.

Greek diplomatic sources said the meeting was sought by the ambassador and focused on the crisis in Iraq, the situation in the Middle East and the crisis in North Korea.

The same sources said that Papandreou briefed Miller on his planned visits to Arab countries and the Middle East and the messages that he would convey in view of the common position adopted by EU foreign ministers.

They also announced that the foreign minister will be visiting North and South Korea on February 11-12 in his capacity as head of the EU Ministers' Council in order to strengthen political dialogue.

Greek foreign ministry spokesman Panos Beglitis told a press briefing Thursday that the EU Troika talks with Turkey on Friday would focus on revision of the EU-Turkey partnership relations, EU-Turkey relations in light of the results of the recent EU summit in Copenhagen, reinforcement of the political dialogue, and Turkey's fulfillment of the Copenhagen criteria, as well as developments in the Middle East, Amman, Afghanistan, the Western Balkans and in the Caucasus.

Beglitis described the visit as ''important'', saying it was provide the opportunity for discussion of the next steps aimed at further strengthening EU-Turkish relations in light of the EU-Turkey Association Council scheduled for April.

Beglitis further announced that in the framework of the Greek EU Presidency's initiatives and activities, Papandreou would on Sunday visit Damascus, Amman and Riyadh for talks on the Iraq crisis.

The prospect of Papandreou also going to Cairo for talks with the Egyptian government was still open, the spokesman added.

[06] Hungarian PM Medghessy meets with President, ND leader and parliament president

Athens, 31/01/2003 (ANA)

Medghessy also met with main opposition New Democracy leader Costas Karamanlis, with whom he exchanged views on the future of Europe, EU enlargement and developments in the Iraq crisis.

According to an ND announcement issued after the meeting with Karamanlis, Medghessy displayed particular interest in the ND leader's views concerning Greece's experiences from its 20-year membership in the EU.

Karamanlis reiterated his party's views on the Union's federal prospect, while on the issue of Iraq he noted that a uniform European stance was necessary in order to achieve a peaceful resolution of the problem and that the relevant UN Security Council resolutions must be respected by all sides.

On the Cyprus issue, Karamanlis reiterated the party's positions that the ongoing negotiations should lead to a viable and functional solution that was also in line with the EU body of legislation, known as the 'acquis communautaire'.

Medghessy further met with parliament president Apostolos Kaklamanis, with whom he also discussed the developments in Iraq as well as the prospects for Hungary's accession to the European Union.

Clarifying Hungary's stance on the Iraq crisis and his country's signing of an eight-country statement backing the US positions on Iraq, Medghessy said that Hungary ''would do well to aid the adaptation of the different views and urge Europe to have unity''.

''We want a peaceful settlement of the Iraq crisis, based on the UN Security Council resolution, but at the same time, no one can ignore this resolution, due to the influence of the UN as well as that of the Security Council. This is why I joined the view of (British premier) Tony Blair, (Czech premier) Vaclav Havel, and so many others,'' Medghessy said.

The prime ministers of Britain, Spain, Italy, Portugal, Hungary, Poland, Denmark and the Czech Republic co-signed an article published Thursday in several European and US newspapers calling for Europe to back the US in enforcing UN resolutions on Iraq, and warning that if the UN Security Council failed to secure Saddam's adherence to Resolution 1441 it would lose its influence and credibility.

Turning to other issues, Medghessy thanked Kaklamanis for Greece's and his own personal support for Hungary's EU candidacy, and invited him to visit Budapest, which the Greek parliamentary speaker said he would do ''at the first opportunity''.

Medghessy also held talks Wednesday evening with Greek Prime Minister Costas Simitis on Hungary's upcoming accession to the European Union, issues concerning the future of Europe and bilateral relations between Greece and Hungary.

Public order minister meets Hungarian interior minister: Public Order Minister Mihalis Chrysohoidis met Hungarian Interior Minister Monica Lamberth in Athens on Thursday and briefed her on the priorities of the Greek EU presidency.

A ministry press release said they also discussed issues of mutual interest and agreed for there to be closer cooperation on all levels.

Chrysohoidis also briefed Lamberth on the Budapest Group meeting which will be held in Athens on March 8-9.

[07] PM tells cabinet meeting Cyprus solution by February 28 extremely difficult

Athens, 31/01/2003 (ANA)

Simitis said UN Cyprus envoy Alvaro de Soto and the UN have the feeling that a deadlock has been created and are thinking of a change in the procedure.

The prime minister added that a third plan by UN Secretary General Kofi Annan entails risks because it is possible for proposals to be made which are unacceptable for the Greek Cypriots in order to persuade the Turkish Cypriots.

''We must be ready and make negotiatory efforts,'' he said, referring to the possibility of referendums being held in the two communities before an agreement is reached, a possibility over which Cyprus President Glafcos Clerides has expressed a negative position.

Simitis said the scene may be clarified after de Soto's visit to Ankara.

[08] Alternate FM holds talks with Slovakian deputy FM

Athens, 31/01/2003 (ANA)

The issues discussed included the completion of the Accession Treaty, the participation of the new member-states in the EU's bodies and especially the Spring Summit in Brussels, which will take place before the signing of the accession treaty.

They also discussed the course of discussion on the conference for the future of Europe and the Franco-German proposal on the future of the EU.

There was agreement on internal EU issues, such as the election of the president of the European Commission and the necessity of cooperation on the issue of Iraq.

[09] Greek EU Presidency statement on Serbia and Montenegro

Athens, 31/01/2003 (ANA)

The text of the statement follows:

�The Presidency welcomes the adoption of the Constitutional Charter and its Implementing Law by the Parliaments of Serbia and Montenegro, which constitutes an important step towards the full implementation of the March 14th 2002 Belgrade Agreement.

�Looking forward to the rapid adoption of the Charter and the Implementing Law by the Federal Parliament, the Presidency would also like to encourage all the political forces in both Republics to closely cooperate in order to nominate as soon as possible the Deputies of the Parliament of the State Union.

�Following this successful development, efforts should now focus on building up the new institutions, establishing a functional and effective State Union and meeting the necessary criteria for the further advancement of Serbia and Montenegro�s European perspective.�

[10] Greek PM's interview to appear in EUROMagazine in Friday's edition

Athens, 31/01/2003 (ANA)

''The decision for the undertaking of initiatives and the initiation of measures was taken by the Lisbon Summit. The Greek Presidency will attempt to specify the initiatives and to promote a series of decisions. But the effort will not be completed and it will not end along with the European Presidency,'' Simitis said in the interview.

He also said that the Greek presidency will prepare to propose daring and effective economic and social reforms which promote recovery through competitiveness and new jobs will increase in number.

In the interview, Simitis also touched on EU enlargement, the future of a Europe of 25 members, the accession of Cyprus and the resolution of the Cyprus problem and finally the Iraq crisis.

[11] Protopapas: Gov't has never denied corruption in public sector

Athens, 31/01/2003 (ANA)

''I have repeatedly recognized this and have stressed that the government is determined to clear up public life and get to the bottom of the problems,'' he added.

He had been asked to comment on the number of outstanding cases involving graft currently being investigated by Supreme Court public prosecutors.

[12] Greece announces largest ever public investment plan

Athens, 31/01/2003 (ANA)

Deputy Finance Minister Christos Protopapas said in a directive that investment funding for 2003 under the plan would total 8.918 billion euros.

Of the total, 5.770 billion euros are destined for co-financed works under European Union structural funds; and 3.148 million euros for projects receiving national funds.

The investment plan aims to fund projects under the EU's Third Community Support Framework package, Community initiatives and the second cohesion fund; and works for completion from national funds for the Athens 2004 Olympics.

The investment plan for 2003 lays emphasis on the regions, reflecting priorities of the Third Community Framework package, under which 80 percent of funds are destined for regional development.

The deadline for application for funds is March 3, 2003.

[13] Christodoulakis criticizes French stance on Stability Pact

Athens, 31/01/2003 (ANA)

The Greek minister stressed ''it was of crucial importance, not only for eurozone countries but for those that have not become members yet'' that France complied with a decision taken by an ECOFIN meeting last week for the country to cut its public deficit by 0.5 percent annually and pledge it would work to balancing its budget by 2006.

In his interview, Mr Christodoulakis said that Denmark and Sweden, two EU member-states currently discussing adopting the euro currency, would like to have guarantees for the proper management of the currency.

The Greek minister stressed that a debate between Europeans over the stability pact was leading EU members away from their original goal, to seek structural reforms in the economy.

[14] Thessaloniki airport expansion project to be completed by 2007

Athens, 31/01/2003 (ANA)

The project to expand the passenger terminal is expected to be completed by June 2003 it time for the EU summit.

Mr Verelis said that works to improve and expand the airport's cargo terminal was expected to be completed in less than two years.

The Greek minister stressed that the new terminal and an extension of the airport's runway by one kilometer, budgeted at 720 million euros, were expected to be gradually completed by 2007.

Mr Verelis said a survey on the need for improvement works in other airports in Northern Greece showed that the Ioannina airport needed the installation of an ILS landing system.

[15] National Bank expects ECB to cut rates in March

Athens, 31/01/2003 (ANA)

The bank's analysts estimate that inflation in the eurozone would be held around 1.8 percent as the impact from higher oil prices would be counterbalanced by an appreciating euro.

National Bank said in its bulletin that a higher euro rate would hit exports and that a fall in inflation would lead to increased domestic demand.

The bank's analysts reviewed downwards their forecasts for economic growth in the eurozone to 1.3 percent in 2003 from an earlier forecast of 1.5 percent.

A stronger euro was an expected correction of the currency towards its long-term levels, as they are defined by real economy and financial markets, the bank said. The single currency's convergence towards that level, however, was not gradual as previously thought. The euro's rise accelerated as a result of uncertainties over economic conditions in the US and slower demand for equities.

National Bank's analysts expect the euro to continue rising up to the 1.10 dollars rate before stabilizing around its long-term level of 1.06 dollars.

Under this scenario, the European Central Bank is expected to further cut its intervention rate to balance the impact of a higher euro rate on monetary conditions in the eurozone, the report said. Analysts expect a cut of 25 basis points in March.

The report also presents a less probable and more pessimistic scenario over development in Iraq. Under this scenario the crisis will last longer and the price of oil will jump to 38 dollars per barrel to remain at this level by the end of the year. Such a prospect would cut growth rates to 0.8 percent in the eurozone in 2003 and push the inflation rate to 2.3 percent. The European Central Bank then is expected to cut rates by 75 basis points to 2.0 percent.

[16] Civil aviation workers reject OA's privatization plans

Athens, 31/01/2003 (ANA)

Speakers in a seminar organized by OSPA said that government plans and policies promoting the privatization of the national carrier, its shrinkage and Olympic Airways Group's break up were disastrous and stressed that despite problems and a crisis currently facing the international airline industry, the Greek flag carrier has the dynamism and the competitive advantages needed to survive and develop.

OSPA insisted on the need to maintain OA's national and social role, rejecting the company's current model of organization and operation.

OSPA members believe there could be a viable and realistic solution for Olympic Airways on the precondition that the government and workers could find mutually accepted solutions for the company, solutions that would ensure its survival and growth, job positions and workers' pension rights.

The seminar, however, failed to submit specific proposals regarding the capital needed to fund OA's development.

OSPA exchanged letters with EU Commission President, Romano Prodi, on the matter. In its letter to Mr Prodi, OSPA stressed that Olympic Airways was beginning to stand on its feet, despite a negative international climate, and that it was facing a better future helped by the Athens 2004 Olympic Games. OSPA also urged the Commission to disregard accusations by OA's competitors.

In his reply, Mr Prodi stressed that Commission's inspections showed that there were no irregularities in state subsidies to Olympic Airways from 1998 onwards, but that a state help given in August 1998 was misused and offered the company an unfair advantage over its competitors.

The Greek government has announced it expected to have results in a process to privatize the national carrier by the end of January.

[17] Epirus remains poorest region in EU on basis of per capita

GDP BRUSSELS 31/01/2003 (ANA/B.Demiris)

In 2000, Greek per capita GDP expressed in units of purchasing power was 67.7 percent of the EU average, with Epirus at 47.0 percent, and Attica, where Athens is located, 77.0 percent.

According to another EU report released on Thursday on cohesion, Attica and two other Greek areas will not receive funding under the EU's structural funds from 2007 to 2013.

The areas also barred from cash under the funding program are central mainland Greece and the southern Aegean islands. Borderline is central Macedonia, the report said.

The reason for the anticipated denial of funds is based on new criteria for eligibility, and a gradual phasing out of funds for less needy areas, the report added.

[18] Greek minister visits Fitur 2003 fair in Madrid

Athens, 31/01/2003 (ANA)

The Greek minister visited all Greek pavilions and was directly briefed over the prospects of the Spanish market for 2003 and for the interest showed by Spanish tour operators for Greece.

Mr Georgakopoulos also met with World Tourism Organization secretary-general, Mr. Francescali, and discussed prospects of the tourist market in view of a possible war in Iraq.

Spain's tour operators told the Greek minister that the September 11 terrorist attacks on the US hit a trend of outgoing tourists in the country. They said that 2003 was expected to be a very good year for Greece and that around 150,000 Spaniards were expected to visit Greece this year (the same number as in 2001), but a decision by the US to intervene military in Iraq changed the situation. Cancellations were rapidly increasing, they said.

[19] Greek stocks move cautiously higher on Thursday

Athens, 31/01/2003 (ANA)

The general index rose 0.33 percent to end at 1,671.13 points, with turnover a low 54.4 million euros.

The Retail, Textile and Banks sectors scored the biggest percentage gains of the day (2.32 percent, 1.78 percent and 0.73 percent, respectively), while the IT, Publication and Insurance sectors suffered the heaviest losses (1.83 percent, 1.26 percent and 1.08 percent).

The FTSE/ASE 20 index for blue chip and heavy traded stocks rose 0.55 percent, the FTSE/ASE MID 40 index ended 0.23 percent down and the FTSE/ASE SmallCap 80 index eased 0.08 percent.

The wider FTSE/ASE 140 index rose 0.35 percent. Broadly, decliners led advancers by 158 to 124 with another 69 issues unchanged.

Derivatives Market Close: Turnover at 46.4 mln euros Thursday

Equity Index Futures: