Athens News Agency: Daily News Bulletin in English, 03-05-31

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

CONTENTS

[01] Hellenic Petroleum to merge with Petrola Hellas S.A.

[02] Progress with EU-Russia relations the focus of St.Petersburg summit on Saturday ST.

[03] SARS, EU cooperation dominate Simitis-Jintao meeting in Russia

[04] Greek EU presidency - concerns about new EU division over draft Constitution ST.

[05] Gov't denies ICAO decision for imminent change to air corridors above Greece

[06] Parliament president opens EU Parliamentary environment committees meeting

[07] Kaklamanis receives US Congresswoman Berkley

[08] Coalition leader recommends change in party's name

[09] File on 'Avriani' allegations against Malesios sent to Parliament

[10] Greek, Italian agriculture ministers probe Common Agricultural Policy revision

[11] State budget deficit exceeded by 60.5 per cent in first four months of 2003

[12] Greek weekly economic review

[13] Greek stocks end 0.95 pct down in May

[14] World press meeting on Athens 2004 Olympics coverage opens Sunday

[15] Passengers of distressed catamaran safely transferred to other ships

[16] Louizis Riankour fiasco again occupies N17 trial

[17] 'Naxakis to blame', former EYP chief says during trial for Ocalan affair

[18] Korydallos prison governor served suspended sentence for abusive behavior

[19] Over 60 communist and labor parties to hold meeting in Athens on June 19-20

[20] Book on Constantine Mitsotakis' policy on Turkey and Cyprus presented in Athens

[21] Bakoyianni in Turkey for official visit

[22] Conference in Athens on violence against women

[23] Greek and Turkish academics exchange views at Istanbul meeting

[24] Cyprus: Government spokesman says no sign of change in Turkish policy

[25] US says Cyprus negotiations must resume as soon as possible

[01] Hellenic Petroleum to merge with Petrola Hellas S.A.

Athens, 31/05/2003 (ANA)

The transaction will take place via a purchase of 16.6 per cent of Hellenic Petroleum shares by Petrola at 7.5 euros per share for a total of 326 million euros. (The actual transaction will involve some 43.5 million shares).

The agreement for the merger was struck between the Greek government, major shareholder in Hellenic Petroleum, and Paneuropean Oil and Industrial Holdings S.A., the parent company of Petrola.

According to the agreement the exchange of shares will be based on the price of the Athens Stock Exchange board for the two companies on May 29, 2003 and the rate of exchange will be set at 5.36 Petrola shares per one of Hellenic Petroleum share. This rate may change following the compilation of reports by independent auditing houses.

The same agreement also provided that the Greek state will maintain the management of the new company to emerge from the merger.

With the conclusion of the merger, which is expected to happen by the end of the year, the Latsis Group of companies, which controls Petrola and Paneuropean, will own some 25 per cent of the total shares of Hellenic Petroleum.

According to Christodoulakis, the agreement mandates that the new Hellenic Petroleum's board of directors will increase in numbers from 11 to 13 of which seven will be appointed by the state two by Petrola, while two will be appointed by the employees union and the remaining two by the minority shareholders.

The right of the Greek state to run the company can only be abolished at the end of a five-year term, following the merger and only in the case that 50 per cent plus one shareholder votes approve such a move.

On his part, Tsohatzopoulos stressed that Hellenic Petroleum straightens its position in the Greek market and its capability for further expansion in the wider region, creating a significant turnover of an annual 3.9 billion euros.

ND says ELPE-Petrola merger not substantive privatization: The main opposition New Democracy party on Friday criticized the way with which the merger between the Hellenic Petroleum (ELPE) and Petrola companies was carried out.

''From what has been announced so far on the merger between ELPE and Petrola, it appears that it is not a question of substantive privatization,'' ND spokesman Theodoros Roussopoulos said after announcements were made by the development and finance ministers.

Roussopoulos added that this is so because the majority of shares and the management remain in the possession of the state, while one cannot discern in the agreement how competition is being strengthened.

The spokesman further said ND has two steadfast principles: the principle of substantive denationalization and the disengagement of the state from business activities and, secondly, the principle of strengthening healthy competition.

Motor Oil's head criticizes govt's privatization policy: Vardis Vardinoyiannis, chairman of Motor Oil Hellas, on Friday criticized the government's privatization policy saying that "it depends on the government, any Greek government, to decide on privatizations or nationalizations. The current government talks of privations but at times it surprises us by deciding nationalizations."

He was commenting on recent speculation over a merger agreement between Hellenic Petroleum and Petrola (a member of Latsis Group of Companies) to create a huge Greek oil group.

"The government must decide what it wants to do...Either there is a government or not," Mr Vardinoyiannis told a general shareholders' meeting on Friday.

The meeting approved the group's 2002 results and a board plan to pay a 0.50 euros per share dividend to shareholders.

Motor Oil Hellas plans to invest around 70 million euros this year to promote a new generation of "clean" fuel in the European Union after 2005.

[02] Progress with EU-Russia relations the focus of St.Petersburg summit on Saturday ST.

PETERSBURG 31/05/2003 (ANA - V. Mourtis)

Talking to reporters here on Friday, Simitis said the Greek presidency had decided to advance efforts to upgrade bilateral EU-Russia relations, a decision shared by all European partners.

Simitis added there were three areas in which efforts for EU-Russia cooperation had not been successful: Political dialogue on foreign policy and security and defense policy, economic cooperation, and cooperation in justice and home affairs, and that now a fourth area was added for cooperation in research, technology and culture.

Energy policy issues will also be reviewed, since, as the Greek premier said, the EU was in search of additional energy suppliers and to that end it would increase investments in Russia for development of energy resources in a long range, which would ensure energy sources as well as stable prices.

Asked about the ''soft points'' that were the cause of failure in progress with EU-Russia relations, Simitis said discussions in the past had been taking place on a general level, adding that the agreements should be more specific, that better coordination was required and meetings should not be restricted to a foreign ministers level.

With regard to reservations on the part of the new Union members toward Russia due to problems they had with that country in the past, Simitis admitted that Eastern European countries had strong security concerns and there were more interested in their security than in their economy. He added that the issue was discussed with Russia to seek replies that would put such concerns at rest.

Cooperation on the environment and the Kyoto protocol will also be on the Council agenda. Simitis said that Europe was seriously concerned over the issue of nuclear waste but also over the production of energy at Russian nuclear plants. He said Russia's response to issues pertaining to nuclear energy and arms was positive, but added that Russians had not yet realized the seriousness of problems in connection with the environment.

Participants in the EU-Russia Council will also discuss other international issues including United Nations resolutions on the reconstruction of postwar Iraq, as well as a more active role for the EU and Russia there, the Middle East problem and the situation in the Western Balkans, while Greece will also raise a question for pressure to be exerted on Turkey toward a settlement of the Cyprus issue within the framework of a draft proposed by United Nations Secretary General Kofi Annan.

The 11th Council between the European Union and the Russian Federation will be held on Saturday in St. Petersburg with the participation of the leaders from all 25 current and future EU Member States, the President of the European Commission Romano Prodi and the Secretary General/High Representative for Common Foreign and Security Policy Javier Solana, amidst celebrations to commemorate the 300th anniversary of that city.

[03] SARS, EU cooperation dominate Simitis-Jintao meeting in Russia

Athens, 31/05/2003 (ANA)

According to diplomatic sources, during the 35-minute meeting Simitis briefed the Chinese president on ways to further his country�s partnership with the now enlarged European block.

Jintao expounded on the deadly SARS virus epidemic, asking for an exchange of data on SARS-related cases between his country and the EU, to provide medical, scientific, pharmaceutical and any other possible form of assistance to China to better fight the epidemic.

[04] Greek EU presidency - concerns about new EU division over draft Constitution ST.

PETERSBURG 31/05/2003 (ANA - V. Mourtis)

Members of the delegation expressed concern that Convention President Valery Giscard d' Estaing might attempt to ''cheat'' by passing off his own views as positions of the Convention.

Greek EU presidency sources said that Greek Foreign Minister George Papandreou was not accompany Prime Minister Costas Simitis in St. Petersburg because the premier had ordered him to go to Brussels to participate in the Convention's discussions and attempt to avert possible division of the Union over the issue of the Constitution.

The common sentiment within the Greek delegation was that d' Estaing should present the actual conclusions of the debate for the Constitution, and not his views.

[05] Gov't denies ICAO decision for imminent change to air corridors above Greece

Athens, 31/05/2003 (ANA)

The minister was responding to questions put in Parliament by PASOK MP Yiannis Kapsis, in which he quoted an article appearing in the Greek newspaper ''Eleftherotypia'' on May 24 that said the ICAO had decided to scrap air corridor K-60 and create two new air corridors named UN 127 and UN 128 that would pass above Limnos and Rodopi.

Loverdos described the newspaper's report as inaccurate and said that nothing had been decided yet at the ICAO regarding the air corridors.

He added that the Greek foreign ministry had ''sternly given its opinion'' on the issue, while the relevant documents would be submitted to Parliament's Foreign Affairs Committee as soon as talks with the ICAO were completed.

Kapsis insisted that the paper's information was correct and demanded that Loverdos commit himself that the issue will be discussed by the Parliamentary committee before the ICAO made its decision.

The minister pointed out that ICAO decisions on Flight Information Region issues were unanimous and said that Greece would insist on the existing measures based on its interests.

[06] Parliament president opens EU Parliamentary environment committees meeting

Athens, 31/05/2003 (ANA)

Attending the meeting are representatives of the government, scientific agencies and ecological organizations.

Addressing the opening of the sessions, Greek Parliament President Apostolos Kaklamanis said ''enclaved in a society of sterile competitiveness in pursuit of wealth and under the avalanche of very powerful advertising mechanisms, we are unable to conceive the total image of the planet, but also to get involved in the endless quest for material goods.''

This fact, he said, not only brings about catastrophic repercussions to the basic quality of the life of people, who always remain unhappy, given that they constantly seek more, but also to their social and political behavior, as everything is judged only by the size of their economic performance.''

[07] Kaklamanis receives US Congresswoman Berkley

Athens, 31/05/2003 (ANA)

Among others, the Middle East situation was on the agenda of talks, especially the latest �road map� for peace in the region.

Berkley has pushed for the recognition of Jerusalem Patriarch Irineos by the Israeli state � an issue still pending and one being closely watched by Athens and local ecclesiastical circles � while she also supports the return of the Parthenon Marbles to Greece as well as efforts to solve the Cyprus problem.

Berkley, a member of the influential Congressional foreign relations committee, hails from the long-standing Jewish community of Thessaloniki.

[08] Coalition leader recommends change in party's name

Athens, 31/05/2003 (ANA)

Addressing the 1,700 delegates present at the conference, Constantopoulos reiterated the basic directive lines of the party's policy which is European orientation, the need for a new European left, opposition to neo-liberalism and the disagreements with the policies of both the ruling PASOK government and the main opposition New Democracy (ND) party.

Constantopoulos said that there is ''a red line'' in the policies of all parties and that his party's ''red line'' included ''opposition to neo-liberalism in all its forms, opposition to the current globalization which is sealed by neo-liberalism and the hegemony of the United States, opposition to the incorporation of Europe and of our country in this neo-liberal format, our will to struggle together with the new movements against neo-liberal globalization and our will to struggle as a European left for the prospects of European unification which will dispute current neo-liberal globalization and support peace, democracy, the social state and the individual, political and social rights.''

Ruling PASOK'S Central Committee Secretary Costas Laliotis in an address to the Coalition conference referred to what he called the necessity of founding a ''modern and democratic bloc, a modern and multi-party centre-left.''

[09] File on 'Avriani' allegations against Malesios sent to Parliament

Athens, 31/05/2003 (ANA)

The paper had claimed that Malesios was living rent-free in a luxury apartment owned by Altec owner Thanassis Athanasoulis in return for promoting Altec's bid for a lucrative Olympics security contract.

In his statements to the prosecutor, Kouris said that Malesios had exerted ''extremely strong pressure'' on public order ministry staff and high-ranking defense ministry officials to award the contract to the consortium that Athanasoulis was participating in.

Responding, Malesios stressed that the planning and assessment committee that he had chaired was not the one that had carried out the tender and had not appointed any of the bodies that carried out the project. He also denied participating in any committee or body that decided or assessed the bids in the tender.

Under the Constitution, only Parliament is competent to decide whether to press charges against a minister for offences committed while in office. A proposal to prosecute must be supported by at least 30 MPs and an absolute majority of the House is required for the proposal to be approved.

In a related issue, meanwhile, architect Lili Xynarianou filed charges against Press and Media Minister Christos Protopapas for slander and verbal abuse on Friday in connection with another of the newspaper's articles.

Xynarianou was quoted by 'Avriani' in an article claiming that Athanasoulis had illegally financed the minister's pre-election campaigns.

The suit is now in the hands of a public prosecutor and concerns claims by Protopapas that she was lying and for referring to her as a 'pathetic lady'.

[10] Greek, Italian agriculture ministers probe Common Agricultural Policy revision

Athens, 31/05/2003 (ANA)

Speaking to reporters later, Drys said the existence of a majority at EU member-state level is being ascertained who desire the completion of Common Agricultural Policy reform by the end of the Greek presidency.

''Our aim is to be led to solutions safeguarding the future of European farmers, equal treatment for Mediterranean products, the provision of adequate funds for them and the lifting of injustices currently contained in Common Agricultural Policy in certain sectors such as, for example, the allocation of milk quotas,'' he added.

[11] State budget deficit exceeded by 60.5 per cent in first four months of 2003

Athens, 31/05/2003 (ANA)

Expenditures also exceeded those budgeted reaching 16.3 billion euros, for a 15.6 per cent increase on a year-on-year basis.

The increase in expenditures, according to the finance ministry, was due to increased primary spending, increased state employee payrolls and the payment of the ''family bonus'' to both spouses, if they both work for the state (up until recently only one of the two spouses was allowed the ''family bonus'').

[12] Greek weekly economic review

Athens, 31/05/2003 (ANA)

Nikolaos Garganas, the central bank's governor, in a meeting with the country's leading bankers said that a necessary precondition for such a decision was the proper operation of a Credit Bureau in the framework of Teresias system, monitoring bank transactions in the country.

In other headline news during the week under review, Greek imports rose 12.8 percent in the first two months of 2003, compared with the same period last year, totalling 5.370 billion euros, from 4.760 billion euros, National Statistics Service said. The total value of imports (excluding oil products) rose by 573 million euros, or 14.7 percent, in the January-February period compared with the same period last year, while exports-deliveries totalled 1.921 billion euros, up 9.2 percent over the same period. The total value of exports-deliveries rose 70.7 million euros, or 4.4 percent.

A total of 48,576 bids, worth 651,094,000 euros, submitted with the government's second issue of special savings securities, so-called "popular bonds". These bonds are designed to offer to small depositors higher returns, currently at 3.60 percent.

Greece and the eurozone are experiencing an increasing problem with the circulation of forged 200 euro bills, Bank of Greece officials said. The officials noted that the forged euro bills, mainly 200s, were printed in Bulgaria and distributed throughout Europe.

One in 10 European consumers that have made an order through the Internet never received their products although they had paid for it, a pan-European survey on electronic business showed. The survey said that a 34 percent of orders made through the Internet was not serviced, while a 31.5 percent of consumers did not get a refund after returning, timely, a purchased product.

Development Minister Akis Tsohatzopoulos unveiled a plan to set up an Independent Supervisory Authority to regulate and monitor the domestic insurance and re-insurance market.

The Athens Stock Exchange begun operations of a state securities market during the week. The new market will trade fixed-income state securities through the Integrated Automated System of Electronic Trading (OASIS).

A man owner of a university degree needs an average time of 41 months to find a job after completing their educations, while the average time for women in the same category was 36 months, a survey by National Statistics Service showed. The survey was compiled on a sample of 7,656 people aged 15-35 years old that had completed their educations after 1990.

The time period needed for a Greek youth to find a job, after completing basic education, was 4-11 months.

Tourist arrivals with charter flights rose 1.55 percent to 301,657 in the first four months of 2003, compared with the same period last year, Greece's National Tourism Organization said.

[13] Greek stocks end 0.95 pct down in May

Athens, 31/05/2003 (ANA)

The general index ended 0.28 percent lower at 1,707.54 points, reflecting increased profit taking in smaller capitalization stocks. The index ended the week 0.78 percent higher, but down 0.95 percent in May.

Turnover was an improved 161.4 million euros for a new record high in 2003.

The FTSE/ASE 20 index for blue chip and heavy traded stocks fell 0.44 percent, the FTSE/ASE MID 40 index rose 0.07 percent and the FTSE/ASE SmallCap 80 index ended 0.87 percent down.

The IT Solutions and Wholesale sectors suffered the heaviest percentage losses of the day (2.92 percent and 0.96 percent, respectively), while the retail and food-beverage sectors scored the biggest percentage gains (2.39 percent and 1.15 percent, respectively).

Broadly, decliners led advancers by 190 to 105 with another 61 issues unchanged.

Derivatives Market Close: Trade at discount Friday

Equity Index Futures: