Athens News Agency: Daily News Bulletin in English, 03-06-03

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

CONTENTS

[01] G8 meeting discusses international economy, Middle East, Iraq and North Korea

[02] EU supports W. Balkans' European prospect, FM says

[03] FM to attend EU-NATO meeting in Madrid on Tuesday

[04] DM says target is for professional soldiers to exceed 50 pc of human potential

[05] Deputy FM inaugurates EU development cooperation meeting

[06] Greek-Turkish exploratory talks - 11th round in Ankara on Monday

[07] Oil group merger to benefit Greek consumer and economy, FinMin says

[08] Motor Oil owner says Hellenic Petroleum-Petrola merger is ''political''

[09] EU, Black Sea bank sign cooperation pact

[10] Greek gov�t presents EU funds' absorption report

[11] Budget revenues up 2.8 percent in Jan-May

[12] Farm minister to address the European Parliament in Strasbourg on Tuesday

[13] Greek stocks jump 3.59 percent on Monday

[14] Athens Olympics organizers okay 1998-2002 financial statement

[15] EU health ministers discuss tissues, cells, SARS and tobacco

[16] Greek gov't stresses need for measures in favor of the world's poor

[17] Defense witnesses for Yiannis Serifis testify in November 17 trial

[18] Witness rules out intent by Naxakis to harm Greece through Ocalan affair

[19] Eurostat figures on population, migration in Europe, Greece

[20] Merchant marine ministry releases fact-finding report on 'Jet I'

[21] Athens mayor meets with Turkish premier in Ankara

[22] Karamanlis to address City University on 'Greece in the new European scene'

[23] Charges follow violent protests against new landfills; gov't cites decision

[24] Religious conference calls for recognition of Jerusalem Patriarch Irineos

[25] UN chief recommends extending UNFICYP mandate for six months

[26] Overseas Cypriots call for resumption of Cyprus talks

[27] America's Pancyprian Association to honor George Tenet

[01] G8 meeting discusses international economy, Middle East, Iraq and North Korea

Athens, 03/06/2003 (ANA)

Prime Minister Costas Simitis, attending the summit in his capacity as European Council president, told a press conference that in relation to developments in the international economy a review of the situation was made and the common view reached was that following the end of uncertainty in Iraq, a gradual recovery has taken place which will continue. According to predictions, a considerable recovery will take place in Europe and the United states which shall be greater in 2004.

It was further ascertained that cooperation and coordination is necessary between countries because negative economic developments in a country affect developments in other countries such as, for example, bankruptcies or scandals in the United States had a negative effect on European stock exchanges.

All agreed that development cannot take place with efforts by the United States alone, but the European Union and Japan must participate in the effort.

On the question of the dollar-euro parity, U.S. President George W. Bush informed his interlocutors that the United States wants a strong dollar since its depreciation is primarily due to high interest rates in the EU and not to some pursuit by the United States.

The decrease in dependence on oil, and consequently on OPEC, received a positive response by all. This was achieved primarily by investments taking place in Russia and the procurement of oil from this country.

The issue of the deficit in the U.S. budget was also raised, while President Bush said it is due to a decrease in total demand.

European leaders referred on their part to the development and stability agreement implemented in the EU.

It was stressed that flexibility is necessary and that in periods of recession funds must be provided for infrastructures to fuel growth in this way.

The European leaders, referring to the Middle East issue, said the Palestinian issue must be resolved to avoid the creation of new terrorist organizations and avert the possibility of Palestinians participating in terrorist acts.

Simitis said the common conviction was that a solution to the Palestinian issue must receive agreement by all, adding that all must hail the establishment of a Palestinian state and all must hail the existence of the state of Israel.

The prime minister expressed the hope that President Bush will succeed in promoting the peace process in the Middle East and he has the EU's support for his effort.

Simitis stressed to President Bush, with whom he held discussions for several minutes (he also had corresponding meetings with the other leaders participating in the G8 summit) that a solution is necessary for the Middle East issue.

On the question of Palestinian President Yasser Arafat�s absence from the process, in which President Bush will participate, Simitis said the initiative for the process belongs to the United States and the EU considers it positive because the target was the promotion of the Road Map for peace in the Middle East.

During the discussion on Iraq, the G8 hailed the Security Council's decision and expressed their desire to participate in the country's reconstruction. It was underlined, however, that coordination is necessary and whatever actions are taken must meet with acceptance on the part of the Iraqi people.

The issue of North Korea was raised by Japanese Prime Minister Junichiro Koyzumi who said a peaceful solution must be sought through dialogue and understanding with North Korea.

A discussion was also held on Iran, an issue raised by Russian President Vladimir Putin who, according to Simitis, said special attention is required for some actions by Iran regarding raw nuclear materials.

What the Russian president pointed out in essence, and what his interlocutors agreed with, is that Iran should not go ahead with the production of nuclear weapons.

Simitis, questioned on demonstrations taking place every time the G8 meet and whether the leaders of rich countries heed protest movements, replied affirmatively and added that all appear to have the problems in mind and, giving an example, referred to the fact that leaders from Africa were invited to Sunday's meeting, since it is the poorest continent on the planet.

He further said there was skepticism over developments in the world, but noted that the G8 summit is a meeting place for these problems to be discussed and for solutions to be found, but it is not the only one.

The G8 summit will was to continue on Monday night with an official dinner during which issues concerning international relations and developments would be discussed.

The G8 summit will be concluded on Tuesday morning with the ratification of a joint statement.

[02] EU supports W. Balkans' European prospect, FM says

SKOPJE 03/06/2003 (ANA - N. Frangopoulos)

Papandreou participated in the summit meeting of the five Western Balkan countries in Ohrid, which is taking place in light of the EU Summit of Thessaloniki, due in late June.

Papandreou stressed that a Balkan Peninsula within the European Union, would mean a fully peaceful region, a region of cooperation, providing protection to all citizens, minorities and of course prosperity, adding that Greece, as a country of the region, will support all the efforts toward that direction.

The Greek minister also said it is very encouraging ''that the countries, which several years ago were in conflict among them, now are discussing the deepening of their cooperation. This is a message that progress was made in the region and stability and peace has been strengthened''.

Papandreou underlined that the priorities of the Greek EU presidency for the Western Balkans were especially well received by the leaders of the region's countries in Monday's meeting.

''The Ideas which we submitted about this sector, are systematic, very well worked and with specific targets. The countries of the Western Balkans have adopted them and our aim is that they are also adopted by the 15 EU member-states during the Summit of Thessaloniki,'' Papandreou concluded.

The Former Yugoslav Republic of Macedonia (FYROM), Albania, Serbia-Montenegro, Croatia and Bosnia are participating in the meeting.

In a joint declaration adopted here during the meeting, the presidents of FYROM Boris Trajkovski, Serbia and Montenegro Svetozar Markovic, Albania Alfred Moisiu, Croatia Stjepan Mesic and Bosnia-Herzegovina Borislav Paravac, expressed their willingness to work together to develop regional cooperation and speeding up economic and political reforms in the specific region, to create the conditions that would allow the region�s nations to speed up their incorporation into the EU.

The presidents of the western Balkan nations added that June�s Thessaloniki EU Council would be an excellent opportunity to further their relations with the European block.

�We also expected that the Thessaloniki EU Council would send a strong political message to the region�s countries and their citizens, which would express the position that the EU, as a community of values based on democracy, the sovereignty of justice and respect for freedom, would be placed in favor of the European future of all nations in the regions, and that Europe would be truly united only when all the region�s counties are incorporated into the EU�, added the declaration.

In addition, Balkan leaders asked the EU to support their European path, expressing hope that a first move towards this direction would be to lift visa requirements.

Currently, of the five Balkan nations, only Croatia has submitted an application to join the EU.

[03] FM to attend EU-NATO meeting in Madrid on Tuesday

Athens, 03/06/2003 (ANA)

In a letter addressed to all the participants, NATO Secretary-General Lord George Robertson said the basic goal of this first meeting after the November 2002 NATO Summit in Prague would be to assess the course of decided reforms as well as to reaffirm the role of the Alliance as a pillar of Euro-Atlantic cooperation.

Papandreou, who currently chairs the European Union foreign ministers Council, expects to discuss the course of the ''Euroarmy'' issue, progress with democratization of countries currently on a European course, as well as margins for bilateral EU-NATO cooperation.

Army Chiefs of NATO SE Flank open meeting in Madrid on Tuesday: Chief of the Army General Staff (GES), Lt.-Gen. Panayotis Harvalas, will take part in the annual meeting of the Army Chiefs of NATO's Southeastern Flank, which opens Tuesday in Madrid.

The informal meeting is attended each year by the Army Chiefs of Greece, the US, Spain, Italy, Hungary and Turkey.

A GES announcement on Monday said the topics that would be discussed during the three-day meeting were the present situation and prospects for development and participation in the Rapid Reaction Force, training, and the scenarios for future implementation of NATO's Rapid Deployment Force.

The previous meetings were held in Vicenza, Italy in 2000, Rethymno (Crete), Greece in 2001, and Istanbul, Turkey in 2002.

[04] DM says target is for professional soldiers to exceed 50 pc of human potential

Athens, 03/06/2003 (ANA)

He added that the total number of professional soldiers has already reached 8,850, rendering the target of hiring 25,000 professional soldiers by the end of 2005 possible.

Papantoniou was speaking in Thessaloniki, northern Greece, on the issue of ''European defense and defense industry'' at a dinner given in his honor by the five chambers.

The defense minister said professionalism in the military's human potential is part of the armed forces overall reform program, adding that this is 100 percent the case in the other European countries.

''The financial target of reorganizing the armed forces is decreasing defense expenditures to levels below four percent of GDP. This target has already been achieved. In 2003 defense expenditures represent 3.5 percent of GDP,'' he said.

Papantoniou said that in the framework of promoting armaments programs a coordinated effort is being made to support the local defense industry which has shown an improvement in the sectors of organization, infrastructure and quality over the past 10 years.

He further said a basic option of the government is strengthening the position of the Greek defense industry and, in this direction, it is promoting reconstruction policies with state industry mergers and privatizations.

''In parallel, we are promoting cooperation between Greek and European defense industries in the joint production of weaponry systems which the Greek and foreign armed forces will obtain,'' he said.

Referring to the European defense industry, he said it is facing new challenges in a not very favorable environment.

''The share of the European defense industry's sales in the international market has decreased considerably from 56 percent in 1989 to a percentage below 40 percent in 1999 and it is continuing to decrease rapidly,'' Papantoniou said.

[05] Deputy FM inaugurates EU development cooperation meeting

Athens, 03/06/2003 (ANA)

He stressed that ''the contribution of the European Union (to international development) for the year 2002 is about 30 billion euros, that is about 55 per cent of the total of the official development aid globally''.

Loverdos also spoke of the necessity for this action to become known by the citizens and the world, while he added that the new EU member-states should adjust their structures to fit those of the Union.

He underlined that the new member-states will have to implement, in phases, in a stable and systematic way the acquis communautaire in the sectors of development cooperation, economic, funding and technical cooperation with third countries and regions.

[06] Greek-Turkish exploratory talks - 11th round in Ankara on Monday

Athens, 03/06/2003 (ANA)

Beglitis said that the Greek side would be represented by Foreign Ministry General Secretary Ambassador Anastasios Skopelitis, and Turkey by his counterpart Ambassador Ugur Ziyal.

The exploratory talks began on March 12, 2002 and continue in a closed framework, without statements to the press.

The process aims to identify ''points of convergence'' that might lead to more structured dialogue and ultimately an agreement on referring the issue of delineating the Aegean Sea continental shelf to the International Court of Justice at The Hague.

The monthly talks alternate between Greek and Turkish capital. The 10th round was held in Athens last month.

[07] Oil group merger to benefit Greek consumer and economy, FinMin says

Athens, 03/06/2003 (ANA)

In an interview with the daily Athens newspaper TA NEA, Mr Christodoulakis said that the deal was promoting the government's privatization program and did not breached competition rules.

The Greek minister said the deal was an ''essential partnership'' between the private and the public sector and dismissed criticism that the government was nationalizing Petrola. ''Latsis Group will have 25 percent of the group, private investors will hold a 30 percent equity stake and the state will hold a 43 percent stake in the merged group,'' Mr Christodoulakis stressed.

The state's equity holding in the group would fall but it would retain the management, he said.

''Over the next five years that statute of the group will not change and the state will hold seven out of a total of 13 seats in the board. After this period, only if an investor was able to control 50 percent, plus one share, of the outstanding equity capital of the group could take over control of the management,'' the Greek minister stressed.

In his interview, Mr Christodoulakis stressed that the government would expand its social policy in 2004 and announced the hiring of 15-20,000 people in the public sector with part-time contracts. Christodoulakis said there was not plan to leave shops open on Sundays.

He predicted that the unemployment rate could fall below 8.0 percent next year.

Gov't defends decision over refineries merger: The government on Monday defended its decision to allow the controversial merger of state-run Hellenic Petroleum (EL.PE) and privately held Petrola, both listed on the Athens bourse, a decision announced late last week.

Government spokesman Christos Protopapas brushed off vehement criticism by the main opposition New Democracy (ND), before citing what he called a �strategic alliance� that solidifies the employees� positions, and �something that demonstrates the Greek economy�s dynamism...�

He also claimed the merger will bring about positive results for the economy, while charging that ND is actually the party of "vested interests" -- an accusation aimed at ruling PASOK by ND.

[08] Motor Oil owner says Hellenic Petroleum-Petrola merger is ''political''

Athens, 03/06/2003 (ANA)

''I would repeat that the agreement between Hellenic Petroleum and Petrola is a political move. It concerns the national economy, the government and the opposition,'' Vardinoyiannis said in a statement replying to media reports.

The two firms slated for merger are also listed on the Athens Stock Exchange. Petrola belongs to the Latsis shipping, banking and energy group.

''Motor Oil will continue to enjoy cooperation with Hellenic Petroleum and Petrola,'' Vardinoyiannis said.

He also claimed that certain individuals had recently tried to link him to vested financial and political interests, displaying ''ulterior motives or no sense of responsibility.''

Vardinoyiannis noted that he had recently won a court battle against one of the individuals.

''Equating business with vested (financial and political) interests without specific evidence is harmful to democracy and to the national economy,'' he added.

Share swap ratio in Hellenic Petroleum, Petrola merger still to be set: The share swap ratio in a merger of Hellenic Petroleum SA and Petrola Hellas SA has still to be set, Petrola said in a statement on Monday in response to media reports.

''The boards of directors have yet to form a proposal for the share swap ratio for old shares in the two firms and new stock in the company to result from the merger,'' the statement said.

Both companies are quoted on the Athens Stock Exchange.

Used to calculate the ratio would be an average market value for the two firms in the twelve month period ending on May 29, 2003, Petrola said.

[09] EU, Black Sea bank sign cooperation pact

Athens, 03/06/2003 (ANA)

Under the pact and other decisions taken by the bank's general assembly of shareholders, the credit institution will work with a further seven global organizations for financing to small and medium sized enterprises and for projects in Bulgaria, Romania and Turkey.

Among the bank's seven new partners are the European Investment Bank and European Bank for Reconstruction and Development.

Attending the signing ceremony was Deputy Foreign Minister Yiannis Magriotis, representing Greece's rotating presidency of the EU.

Timed to coincide with the bank's general assembly was a seminar entitled Black Sea Business Day 2003.

Development Minister Akis Tsohatzopoulos told the seminar that cooperation with Black Sea countries should acquire a political angle, beyond economic ties, in order to secure regional integration.

[10] Greek gov�t presents EU funds' absorption report

Athens, 03/06/2003 (ANA)

The Greek minister announced that around 800 million euros (remaining from a Second Community Support Framework) were expected to be received by the end of the year.

Official figures, presented through the economy ministry's official website, however, showed that the absorption rate of EU funds ranged between 10-41 percent of total spending.

Mr Pahtas stressed that a Third Community Support Framework program was a product of studies made in 1999 and noted that it was natural to have changes in 2003.

[11] Budget revenues up 2.8 percent in Jan-May

Athens, 03/06/2003 (ANA)

Mr Fotiadis stressed, however, that due to a reduced profitability by domestic banks in 2002, the state would collect lower revenues from taxes on banks' profits compared with initial forecasts. The state had received 500 million euros in taxes on banks' profits and was expected to return part of that money back this year, the Greek minister said.

[12] Farm minister to address the European Parliament in Strasbourg on Tuesday

Athens, 03/06/2003 (ANA)

The Parliament session has been called in order to issue an opinion on the Union's proposals for reforms to the Common Agricultural Policy.

In his capacity as the chairman of the Union's agriculture ministers Council, Drys, along with European Commissioner for Agriculture Franz Fischler, will address the plenary session of the Parliament.

[13] Greek stocks jump 3.59 percent on Monday

Athens, 03/06/2003 (ANA)

The general index jumped 3.59 percent to end at 1,768.85 points, with turnover an improved 136.4 million euros.

All sector indices ended higher, led by the Textile, Publication and Bank sectors (6.16 percent, 5.68 percent and 5.20 percent, respectively), while the Industrial sector recorded the smallest percentage gain of the day (+2.25 percent).

The FTSE/ASE 20 index for blue chip and heavy traded stocks jumped 4.69 percent, the FTSE/ASE MID 40 index ended 2.27 percent higher and the FTSE/ASE SmallCap 80 index soared 3.94 percent. The High-Velocity index jumped 3.95 percent in its first day of trading in the market.

Broadly, advancers led decliners by 309 to 29 with another 23 issues unchanged.

Derivatives Market Close: Turnover at 138.1 mln euros Monday

Equity Index Futures: