Athens News Agency: Daily News Bulletin in English, 03-05-15

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

CONTENTS

[01] PM rejects industry fears of soaring unemployment

[02] Main opposition party states economic policy platform

[03] EU, Greece do not accept terrorism as political action, PM says

[04] FM notifies European Commission on Turkish violations in Aegean

[05] Gov't spokesman says Turkey deadlocked and isolated from international community

[06] State Dept.: Cyprus peace talks should come under 'UN process'

[07] Berlusconi's office denies Turkish press reports on Italy's stance on Cyprus

[08] Yiannitsis addresses Europarliament on Iraq, EU priorities

[09] Military exercise by SEEBRIG command in Romania

[10] Parl't Committee divided over bill for nationwide radio

[11] Greek EU Presidency condemns terrorist attack in Chechnya

[12] Minister seeks better labor market to help ease joblessness

[13] Industry chief seeks shelter for economy from election tussles

[14] EU energy ministers agree on directive regarding joint thermal energy production

[15] Main opposition blames gov't ineptitude for loss of 2nd CSF funds

[16] Greek hoteliers urge for state support measures

[17] Public sector employees call strike on Monday

[18] Greece plans shipping register for yachts

[19] GDP up 4.3 pct in Q1 year/year

[20] Greek exports fell 5.9 percent in 2002

[21] Buying in small caps leads ASE higher on Wednesday

[22] ATHOC responds to report of ticket delays in Australia

[23] Hellas Sat launched successfully from Cape Canaveral

[24] Tests fail to confirm virus in Greece's first suspected SARS case

[25] EFSA Scientific Advisory Body decides on inter-European Network on food safety

[26] Witnesses testify over alleged N17 involvement in armed robberies

[27] Benefits from peaceful meetings evident, says President Papadopoulos

[01] PM rejects industry fears of soaring unemployment

Athens, 15/05/2003 (ANA)

''Many people maintain that there will be an investment slump after the Athens 2004 Olympic Games, and they have forecast a decline in gross domestic product and a rise in unemployment. These forecasts are entirely erroneous,'' Simitis told the Association of Greek Industry's annual general meeting in a videotaped message.

It was the association's president, Odysseus Kyriakopoulos, who estimated the figure, saying the government should promote business activity through creation of necessary infrastructure and a business climate favoring the establishment of new firms, which would aid job creation.

''Unemployment will continue its downward course, and the era after 2004 will be better than the current one,'' the prime minister forecast.

In an indirect reference to the closure of a Greek operation by the multinational Schiesser Group of Switzerland that will bring 500 redundancies, Simitis said it was imperative to ensure a greater flow of high technology investments from abroad.

''This type of investment would not be seeking cheap labor as in previous decades, but rather a business friendly environment, a modern telecoms and transport infrastructure, a stable tax regime, and highly trained personnel,'' he added.

Simitis also called on companies and their staff to work with the government for ''a giant leap forward'' in boosting alignment with other European Union economies.

''We are again asking firms to contribute creatively to the shaping of a Greece that displays economic clout and social sensitivity,'' he said.

In addition, industry should make more investments, focusing on the creation of quality jobs.

Finally, the prime minister underlined the importance of enlargement of the European Union.

''New investment horizons are opening for Greek companies, as well as new challenges for the competitiveness of our products, and a new situation for the domestic labor market,'' he noted.

[02] Main opposition party states economic policy platform

Athens, 15/05/2003 (ANA)

Addressing the annual general meeting of the Association of Greek Industry, Karamanlis said that in its first six months, the party would overhaul the taxation system to include lower tax brackets and corporate tax and introduce a new development law and comprehensive fiscal records.

''Changes are needed in today's dead-end economic policy mix because we cannot gamble on the future through policies based on short-term cash gains and postponements, with the current state of the public sector, with the current tax system, and with the prevailing climate of corruption,'' the ND leader said.

''At current rates of GDP growth, convergence with other European Union countries will not even be attained in 50 years.

Karamanlis warned that Greek unemployment was the second highest in the EU.

The party would also change the statutory framework for use of the European Union's third support framework package of funds, introduce new statutes for state and co-financed projects, rapidly privatize state corporations, launch new projects, and reinforce the role of the fair competition, capital market, telecoms and energy commissions.

In addition, Karamanlis said ND planned to devise measures aimed at promoting exports and farm products, take steps to attract foreign investors, support the agricultural sector and the tourism industry, and introduce a bill to combat corruption.

Finally, the party would seek to improve the education system, adopt a new policy on public spending, and boost transparency in fiscal policy, he added.

[03] EU, Greece do not accept terrorism as political action, PM says

Athens, 15/05/2003 (ANA)

Simitis spoke strongly against terrorism commenting on a statement made by U.S. President George Bush following the latest murderous terrorist attack in Riyadh, Saudi Arabia. Following the attack Bush had said that ''the war on terrorism is continuing''.

Speaking during a joint press conference he held with Maltese Prime Minister Eddie Fenech Adami in Valetta, he said that ''I would like to express my sorrow for the victims. I would also like to condemn this act and I would like to reiterate that my country, as well as the European Union does not accept terrorism as a political means. All of us should try to put an end to such means of action''.

''The Union always had the policy, that we should combat terrorism and we never said that we believed that this issue was resolved. On the contrary, it is necessary to continue the effort aiming to secure peace, since terrorist activity provokes retaliation,'' Simitis said.

''We should continue our effort aiming at wiping out the causes of those terrorist actions whichever they may be: poverty, nationalism, feelings of oppression,'' he added, stressing that ''peace can be achieved in the Middle East, as well as in all the world, only if we focus on the causes and combat them. And that is what we are trying to do''.

Simitis was in Malta, as part of his EU capitals tour where he discussed the agenda of the June Thessaloniki EU Summit. In Malta, as in almost all other capitals of the new member-states, the European Constitution, now being drafted, took center stage. Also speaking during the press conference, Adami noted that up to this point the Greek presidency had happy moments, such as the enlargement but also international upheaval to deal with stemming from the Iraq crisis.

''I believe that the Greek EU presidency manages in a very positive and effective way these issues,'' Adami stressed.

He also spoke of bilateral issues the two men discussed, underlining the ongoing cooperation concerning search and rescue operations in the Mediterranean, an issue that will be further discussed.

[04] FM notifies European Commission on Turkish violations in Aegean

Athens, 15/05/2003 (ANA)

''Foreign Minister Mr. George A. Papandreou notified the European Commission and relevant Commissioner Mr. (Guenter) Verheugen of the violations of Turkey in the Aegean and particularly of yesterday's (Tuesday's) incident during a Greek exercise. The Greek foreign minister also delivered a relevant note with all the evidence on Turkish behavior in the Aegean during the past period,'' Beglitis said.

Tuesday's incident concerned the shadowing of Greek aircraft during the exercise code-named ''Triaina'' by two Turkish F-16 warplanes.

Earlier on Wednesday, Deputy Foreign Minister Andreas Loverdos told the Parliament's national defense and foreign affairs committee that Papandreou would submit a note to European Commissioner responsible for enlargement Guenter Verheugen either on Wednesday or Thursday detailing all the actions of Turkey toward Greece.

''Tonight or tomorrow morning Foreign Minister George Papandreou will submit a note to European Union Commissioner responsible for the enlargement process Guenter Verheugen, detailing all of Turkey's actions, which color in a negative way Ankara's course to the Union,'' Loverdos said.

He added that the list of Turkey's actions toward Greece details a ''quantitative and qualitative escalation of tension'' on the part of Turkey, saying that the government has directed the Greek envoy in Ankara to protest to the neighboring country's foreign minister.

Speaking to the Parliament committee that met to discuss the ratification of the EU stability and association agreement with the Former Yugoslav Republic of Macedonia (FYROM), the deputy minister also said that both Prime Minister Costas Simitis and Foreign Minister George Papandreou protested recently to their Turkish counterparts, in relation to this issue.

The deputies' strong concern on the Greek-Turkish relations was caused by the cancellation of a programmed military exercise, due to Turkish airforce violations, during the first phases of the exercise in the Northern Aegean, despite a NOTAM having being issued, way in advance.

[05] Gov't spokesman says Turkey deadlocked and isolated from international community

Athens, 15/05/2003 (ANA)

The incident occurred when two Turkish F-16 warplanes, which had been intercepted on two occasions by Greek jets, shadowed Greek F-4 jets from a distance of 1,000 feet while they were attacking a towed sea target during the exercise.

The spokesman said the Turkish aircraft were intercepted and the foreign ministry made necessary demarches.

''The government is steadfast and is not losing its target which is a solution to the Cyprus issue, the shaping of the region into a zone of peace and cooperation and the promotion of national interests through the building of appropriate international balances,'' he added.

[06] State Dept.: Cyprus peace talks should come under 'UN process'

WASHINGTON 15/05/2003 (ANA � T. Ellis)

Asked to comment on the fact that more than 300,000 Greek Cypriots and Turkish Cypriots crossed the �green line� of the divided island without incident for the first time in 30 years since a Turkish invasion and a continuing illegal occupation, deputy State Department spokesman Philip T. Reeker said:

�Well, without taking any particular position on your statements, I don't really have a particular comment. It is something we have observed. Those are choices for the peoples on Cyprus to make. I think it's a good thing that there has been no violence. That's very good. And as you know, for years we have been urging both sides in the situation there to work under the good offices of the United Nations effort to find a solution to that.�

Regarding media reports of US interest in restarting the peace process on Cyprus between the internationally recognized Cyprus government and Denktash, Reeker said the matter was under a �UN process ... That is the process that we support�.

[07] Berlusconi's office denies Turkish press reports on Italy's stance on Cyprus

Athens, 15/05/2003 (ANA)

Berlusconi's office also denied that the premier said that the EU's stance toward the United Nations' plan for the resolution of the island republic's political problem was also wrong.

According to the Greek Foreign Ministry's spokesman Panos Beglitis, the Greek ambassador to Rome requested clarifications over the report from Berlusconi's office and officials there denied ''categorically the content'' of the report.

The response by Berlusconi's office confirmed only that Berlusconi expressed his wish to make possible a meeting between Greek Prime Minister Costas Simitis and his Turkish counterpart Tayyip Erdogan to discuss the Cyprus problem.

''The rest is a common place practice of the Turkish press,'' the office of Berlusconi's said to the Greek ambassador.

[08] Yiannitsis addresses Europarliament on Iraq, EU priorities

STRASBOURG 15/05/2003 (ANA � O. Tsipira)

Yiannitsis stressed that a new situation in military, political and practical terms prevails today in Iraq, and the priorities that the EU should adopt must center on three areas: humanitarian aid, clearing the situation in that country by defining the role of the United Nations, and finally, mapping out a European common foreign policy.

With regard to the humanitarian aid to Iraq, Yiannitsis said the European Commission has already earmarked 100 million euros, of which 33 million have already been channeled to the region.

He further placed emphasis on the need to protect Iraq�s cultural heritage, saying that an immediate target should be to recover invaluable artifacts looted.

Yiannitsis underlined that the UN has a fundamental role to play in Iraq and described as a positive step the appointment by UN Secretary General Kofi Annan of a special representative for Iraq. He added that the disarmament of that country should be settled decisively in accordance with UN resolutions, and be linked with the adoption of a comprehensive policy covering the wider Mid East region on non-proliferation of mass destruction weapons.

Yiannitsis made special reference to promoting the peace process in the Middle East, which he said would have a very positive impact on the Iraq crisis.

The Iraq crisis, according to Yiannitsis, reaffirmed the need for a European common foreign policy and gave rise within the ranks of the Union to a new momentum for a common foreign, security and defense policy.

[09] Military exercise by SEEBRIG command in Romania

Athens, 15/05/2003 (ANA)

The exercise, �Cornerstone 2003�, is being held under the command of the Multinational Peace Force South-Eastern Europe�s South-East Europe Brigade (SEEBRIG).

[10] Parl't Committee divided over bill for nationwide radio

Athens, 15/05/2003 (ANA)

The Committee was strongly divided over the bill and a majority opposed it, voicing concerns that it might create an oligopoly of major Athens stations that would crowd out local radio networks and seize a lion's share of advertising.

In fact, Press and Media Minister Christos Protopapas temporarily withdrew the article in question on Tuesday so that others sections of the bill, such articles on the organization of the ministry's press offices abroad, could go ahead.

Commenting on his decision to withdraw the article, Protopapas said on Wednesday that "a politician is obliged to propose a measure that he considers right but, out of respect for Parliament, when he sees that the logic of the measure is not accepted he must withdraw it."

He noted that only Greece and Sweden lacked nationwide radio stations and that he considered the specific measure a "sign of modernization". He also noted that nationwide television had not prevented the operation of local TV.

[11] Greek EU Presidency condemns terrorist attack in Chechnya

Athens, 15/05/2003 (ANA)

The statement said, among other things, the following:

''The EU Presidency strongly condemns the terrorist attack in Znamenskoye, Chechnya, on May 12, which caused the death of many innocent people.

''The above attack endangers the perspectives to find a political solution and is against the will of the Chechen people to live peacefully in the area and to work for a better future, after almost ten years of armed conflict. Moreover, it undermines efforts to normalize the situation and to create a functional presidential and parliamentary system.

''The EU Presidency encourages Moscow to continue its efforts towards the implementation of a comprehensive policy in Chechnya. It hopes that the above attack will not undermine the recently started process of reconciliation and economic and social reconstruction and will not endanger the implementation of rule of law and respect of human rights in the area.''

[12] Minister seeks better labor market to help ease joblessness

Athens, 15/05/2003 (ANA)

''In the last three years, joblessness has been falling in Greece, but employment has risen at a slower pace than expected, with a rate of growth of about 4.0 percent,'' Christodoulakis told the annual general meeting of the Association of Greek Industry.

An overall government target was to double the rate of alignment with the European Union, so that per capita income in Greece in the decade to come would reach the EU average, he said.

''We have steadily been increasing financing for the social state through fiscal planning, without giving in to unwarranted demands or making pre-election concessions,'' the minister noted.

Business activity should be encouraged, markets needed deregulating, and the economy had to be more outward looking, he said.

In addition, privatization had brought 3.0 billion euros to state coffers in 2002, despite an adverse climate in global markets. The revenue was the highest in the EU as a proportion of gross domestic product.

Christodoulakis also underlined that lending rates had to fall further, which meant banks should contain their operational costs.

Finally, the minister reported that a government investment incentive bill would be sent to parliament for a vote by the end of June, with implementation to begin in September.

[13] Industry chief seeks shelter for economy from election tussles

Athens, 15/05/2003 (ANA)

''The government and opposition should contribute to offering as much protection as possible to the economy from friction that will emerge in the pre-election race in the coming eleven months. They should also refrain from populist rivalry, and upping the stakes in pledges,'' Kyriakopoulos told the association's annual general meeting.

''If we fail to accomplish this, we will place into question in practice the position we won with so much toil in the hard core of Europe,'' he warned.

The industry chief also noted that business was laboring under difficult conditions, which acted as a deterrent to growth, investment and modernization.

Needed were an education system and vocational courses geared to production needs, with emphasis on the new technology; a shrinking of the public sector and its compliance with market attitudes and practice; less red tape; a crackdown on corruption and a focus on transparency; lower taxation for producers; a more flexible labor market; and advanced technology in public administration.

[14] EU energy ministers agree on directive regarding joint thermal energy production

BRUSSELS 15/05/2003 (ANA - G. Zitouniati)

Commission vice president and relevant Commissioner Loyola de Palacio congratulated the Greek presidency for the successful outcome of work on this complicated technical proposal whose processing began last January.

The directive on the joint production of thermal energy and electricity covers a wide range of activities and contributes substantively to saving energy and decreasing carbon dioxide emissions.

An exchange of views took place at the Council, which convened for the first time with the participation of candidate countries, a development hailed by the presiding Greek minister, on progress achieved so far on targets concerning sustainable development set by the world summit in Johannesburg in July 2002.

The energy ministers also ratified a text of conclusions on the EU's international energy relations and the dialogue on energy between the EU and Russia in particular.

They further supported the targets of the upcoming Euro-Mediterranean energy conference in Athens on May 20-21, during which priorities will be adopted for the next three years, while expressing satisfaction over progress achieved at the Euro-Mediterranean energy forum which took place in Brussels last April.

[15] Main opposition blames gov't ineptitude for loss of 2nd CSF funds

Athens, 15/05/2003 (ANA)

Arriving at the Athens Concert Hall for the annual address given by the head of the New Democracy party to the Union of Greek Industry (SEB), Karamanlis said that Greece had only asked for 360 billion drachmas from the 560 billion drachmas available from the 2nd Community Support Framework (CSF), as revealed by European Commissioner Michel Barnier.

This meant the country was losing out on 160 billion euros that it was entitled to and would also have to shell out an additional 20 billion euros because of the Land Register project.

According to the ND leader, this was a ''major political issue'' that concerned both Prime Minister Costas Simitis and his government, all of whose members bore their share of responsibility.

He also reminded reporters of the prime minister's pledge that ''not one drachma would be lost'' when responding to a main opposition question in Parliament three months earlier, noting that this had proved not to be the case.

Responding to Karamanlis, government spokesman Christos Protopapas on Wednesday said the sums referred to were the final payments that marked the close of the 2nd CSF.

''In Greece we carried out extremely stringent checks on the projects ourselves. In some programs we found that the execution had not been what it should be and we asked that these funds not be paid,'' he said.

The government did not wait for the European Commission to carry out its own checks but went ahead to close the accounts on its own and took on the responsibility for any further procedures, the spokesman added.

[16] Greek hoteliers urge for state support measures

Athens, 15/05/2003 (ANA)

The Federation of Greek Hoteliers said that any government measures should move towards: easing the tax burden on tourist packages, improving terms of subsidizing modernization investments, directly supporting businesses' liquidity and ensuring employment during the crisis, limiting bureaucratic procedures and ensuring sufficient funds to promoting and advertising Greek tourist products.

The Federation stressed that intensified competition currently facing the Greek tourist product from other Mediterranean low-cost destinations, combined with increased tax burdens imposed on Greek hotels in the last few years, have weakened financially the country's hotel businesses.

[17] Public sector employees call strike on Monday

Athens, 15/05/2003 (ANA)

Demands for the new payroll program for public employees include the coverage for income losses in 2002 and 2003, the incorporation of extra bonus pays in the basic salary and an agreement for payment of back-pay.

[18] Greece plans shipping register for yachts

Athens, 15/05/2003 (ANA)

Speaking to reporters, in a news conference, Mr Anomeritis noted that the current legislation did not favor the creation of shipping companies to cover yachting and sailing boats.

The new draft bill, submitted to Parliament on Tuesday, envisages changes in the regulatory framework in the yachting business.

There are currently 1,381 Greek yachts operating in the country, with another 1,472 yachts operating under foreign flags.

[19] GDP up 4.3 pct in Q1 year/year

Athens, 15/05/2003 (ANA)

The increase follows successive year-on-year rises in 2002 of 4.2 percent in the second quarter, 3.8 percent in the third quarter, and 3.4 percent in the final quarter of the year, the GNSS said in a statement.

Investments in the first quarter increased by 7.9 percent against the corresponding period of 2002, contributing to a 1.6 percent rise in overall demand, the statement said.

[20] Greek exports fell 5.9 percent in 2002

Athens, 15/05/2003 (ANA)

The figures were included in a monthly bulletin published by the Panhellenic Exporters' Union, reviewing export performance in 2002 in the country, in general and in regions.

The report said that despite a general decline in exports, exports recorded a strong rebound towards Libya, Saudi Arabia and Ukraine.

Export activity in US dollars fell around the world with the exception of European Union, Middle East and other countries, while in euros the decline was more general, with the exception of other countries, the report noted.

Greek exports to India soared to 123 million US dollars in 2002 from 40 million dollars in the previous year, an increase of 204 percent, a 137 percent jump in exports to Libya, a 60 percent rise to Ukraine and a 21 percent increase to Saudi Arabia.

Exports to China totalled 57 million US dollars in 2002, from 44 million dollars in the previous year, a rise of 29 percent.

[21] Buying in small caps leads ASE higher on Wednesday

Athens, 15/05/2003 (ANA)

The general index rose 0.55 percent to end at 1,742.04 points, with turnover an improved 112.9 million euros.

The Metals, IT, Cement and Investment sectors scored the biggest percentage gains of the day (2.11 percent, 2.11 percent, 1.90 percent and 1.80 percent, respectively), while the Textile and Holding sectors suffered the heaviest percentage losses (1.47 percent and 0.52 percent, respectively).

The FTSE/ASE 20 index for blue chip and heavy traded stocks rose 0.59 percent, the FTSE/ASE MID 40 index ended 0.94 percent higher, the FTSE/ASE SmallCap 80 index jumped 1.34 percent and the wider FTSE/ASE 140 index rose 0.73 percent.

Broadly, advancers led decliners by 211 to 90 with another 57 issues unchanged.

Derivatives Market Close: Turnover at 80.0 mln euros Wednesday

Equity Index Futures: