Athens News Agency: Daily News Bulletin in English, 03-06-13

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

CONTENTS

[01] Simitis meets with Juncker in Luxembourg ahead of EU Thessaloniki Summit

[02] Greek and Belgian PMs discuss Thessaloniki EU summit agenda

[03] DM raises issue of national airspace violations with Turkish counterpart

[04] Turkish FM reaffirms Ankara's desire to preserve good relations with Greece

[05] FM and U.S. State Department special coordinator discuss Cyprus issue

[06] US Undersecretary of State Grossman calls Cyprus EU accession a huge success

[07] FM and U.S. ambassador discuss State Department's report on human trafficking

[08] Parliament passes bill for new Attica landfill sites; Greenpeace comments

[09] Parliament's transparency committee briefed on money laundering

[10] EU Commission proposes favorable arrangements for insular, mountainous regions

[11] Press Kit� presented by EU Commission Greek office

[12] ANA opens new 'free access' webpage on EU Council

[13] Hearing over Nazi atrocities in Greece begins before German high court

[14] Gov't, opposition react to IMF report

[15] EU bid for growth should not bring fiscal slackness, finmin says

[16] EU agriculture Council strives for agreement on new

[17] Bourse authorities to probe share moves of oil firms set for merger

[18] Bank of Greece to lift all consumer credit restrictions June 20

[19] Gov�t sees solution to Halkidiki Mining Co next week

[20] Greek FinMin, civil servants' union discuss new payroll system

[21] Verelis expects talks with OA's unions to be concluded by end June

[22] Greek advertising spending up 18 pct in May, yr/yr

[23] Greek stocks jump to new highs on Thursday

[24] ND leader Karamanlis' wife gives birth to twin boy and girl

[25] Moderate earthquake between Thassos and Limnos islands

[26] Newcastle United Greek defender Dabizas breaks arm in car crash

[27] Defense witnesses continue testimony in N17 trial

[28] Seminar on young drug users organized by public order ministry

[29] Turkey has an historic responsibility to press Denktash

[30] FM Iacovou discusses Cyprus problem with Cheney and Rice

[31] Security Council members express support to Annan's plan

[01] Simitis meets with Juncker in Luxembourg ahead of EU Thessaloniki Summit

LUXEMBOURG 13/06/2003 (ANA - G. Zitouniati)

Responding to a relevant question during a press conference here, Simitis made the declaration, while Luxembourg Prime Minister Jean-Claude Juncker, said that ''he would have been an excellent Commission president''.

Simitis met here on Thursday with Juncker and discussed issues related to the Thessaloniki summit agenda.

Speaking to journalists during a press conference after their two- and-a-half hour meeting, Juncker welcomed Simitis and lauded the Greek EU presidency's efforts and contribution in resolving difficult issues such as bank deposit interest taxation.

Simitis, who arrived here as part of the ''24 EU capital tour'' in preparation of the summit, which will be the peak and conclusion of the Greek EU presidency, focused on the summit's agenda.

The results of the Convention for the Future of Europe, the decisions for the new Intergovernmental Conference, immigration policy, the relations of the European Union with the Western Balkans and developments in Iraq and the Middle East topped the meeting's agenda, while the EU's common foreign and security policy were also expected to be addressed.

Simitis tabled the wish of the Greek presidency to arrive at a timetable for the Intergovernmental Conference in his talks with Juncker, which the presidency wishes to initiate in October or November and the signing of the new Treaty later in the year by all 25 EU member-states.

Simitis also focused on conditions in the Middle East, saying that it is not useful to say that the ''road map'' for the Middle East peace process is not in force anymore, every time there is a terrorist action since that would facilitate those who do not wish for a solution to the problem.

''If we want a solution we must insist. Pressure should be applied on both sides to stop these reactions and to see the final goal, which is peace, without them trying to gain an advantage because one side or the other does not implement that which was decided.'' Simitis said.

He added that the Thessaloniki summit will examine EU-US relations, alluding that they are very significant for Europe and for this reason they have to be friendly and based on understanding and the seeking of common ground.

[02] Greek and Belgian PMs discuss Thessaloniki EU summit agenda

BRUSSELS 13/06/2003 (ANA - M. Spinthourakis)

The two leaders appeared optimistic that they will be receiving a complete plan of the European constitution from Valery Giscard d'Estaing next week which, according to the Belgian prime minister, had been the dream of many Europeans for many decades. Simitis said on his part he is optimistic that the European constitution will be ratified by the Euro-elections in 2004.

The Belgian side reiterated the need for an increase in the European Commission's powers and an extension of the principle of a special majority in procedures for adopting EU decisions.

Simitis stressed the importance of consultations to take place to handle the issue of illegal immigration and for European defense, for which a special report will be provided by EU High Com-missioner Javier Solana.

On the question of the European Commission's members having the right to vote in the future, the two prime ministers stated that all countries should have a commissioner, while Simitis said he knows by experience that a Commission composed of 25 persons presents operational problems which must be resolved.

Regarding the question of strengthened cooperation between certain EU member-states alone on defense issues, the Belgian prime minister said it should be allowed by the European constitution, adding that otherwise strengthened cooperation on defense issues will take place outside the EU's framework.

The Greek prime minister said it would be good for strengthened cooperation to develop within the EU's institutional frame-work.

[03] DM raises issue of national airspace violations with Turkish counterpart

Athens, 13/06/2003 (ANA)

Papantoniou pointed out to Gonul that Turkish provocations have increased in frequency, compared to past years, and that Turkish air force pilots insist on engagements and dog fights which creates serious risks for an accident to take place, which in turn could have grave consequences between the two countries and for stability in the region.

''I requested from the Turkish defense minister to take this indication by Greece into serious consideration, which is taking play simply and only to safeguard peace in the sensitive region of the southeastern area of the Mediterranean,'' he said.

Relations between the alliance and the EU were discussed during a dinner with NATO ministers on Wednesday and the Greek presidency's contribution in promoting the relevant agreement was recognized, but primarily covering shortages in weaponry systems which enabled the European army's first mission in Skopje, in the Former Yugoslav Republic of Macedonia, as well as its full activation in 2003 in accordance with Europe's initial target.

Papantoniou said the functioning of the European army will be one of the main issues to be highlighted during the Thessaloniki summit as a great success for the Greek presidency.

Referring to issues discussed during the conference of NATO defense ministers, Papantoniou expressed satisfaction over the preservation of the air force operation centre in Larissa with a Greek commander and double staff and despite the decrease in headquarters from 26 to 16 with the alliance's new structure.

''The initial proposal for the reallocation of headquarters excluded Greece completely since according to the new structure they will exist in only 10 of NATO's 26 member-states. We started from unfavorable negotiating positions and, following a difficult process of contacts at various levels between Brussels and the United States, the final outcome fully satisfies our national interests,'' he added.

The defense minister also said Greece gained a second Naval Prevention Operation Centre in past days with a laborious process, which will be responsible for conducting operations against terrorism all over the Mediterranean and which might be established in Souda.

[04] Turkish FM reaffirms Ankara's desire to preserve good relations with Greece

ISTANBUL 13/06/2003 (ANA - A. Kourkoulas)

Responding to claims from the Greek side that the Turkish military and the Turkish government had a different stance, Gul stressed that the ''Greek government's interlocutor is the Turkish government and there cannot be a distinction between the government and General Staff.''

[05] FM and U.S. State Department special coordinator discuss Cyprus issue

Athens, 13/06/2003 (ANA)

Weston is currently on a tour of European capitals and the Athens, Ankara and Nicosia triangle.

''There is an impetus which started with the accession course of Cyprus and which is also imprinted now on the faces of the Greek Cypriots and Turkish Cypriots who met and communicated recently, refuting those who had claimed that they cannot live together,'' the foreign minister said, adding that this shows the need for an intensification of efforts to resolve the Cyprus issue.

Weston spoke on his part of a ''very good exchange of views'' and of ''positions which are very close'', regarding the next steps to be taken.

He also referred to the latest report by the UN secretary general, as well as to the unanimous resolution endorsed by the Security Council, saying that these elements, as well as the presence of Cyprus Foreign Minister George Iacovou in Washington, confirm the firm involvement of the United States in efforts to achieve a settlement, and offered assurances that its interest and commitment in this direction has in no way been restricted.

[06] US Undersecretary of State Grossman calls Cyprus EU accession a huge success

WASHINGTON 13/06/2003 (ANA T. Ellis)

''This is a huge success for the people of Cyprus, but also for the US'', Grossman said, adding that Washington continued to believe that a political solution for the Cyprus issue was possible by May 2004.

Cyprus has been partitioned for almost 30 years since the 1974 Turkish invasion and occupation of the northern part of the island republic. A breakaway Turkish-Cypriot regime in the north, recognized only by Ankara and supported by Turkish occupation troops, was self-proclaimed in November 1983.

UN-brokered marathon talks held in The Hague between Cyprus president Tassos Papadopoulos, Turkish Cypriot leader Rauf Denktash and UN Secretary-General Kofi Annan for reuniting the divided island republic collapsed on 10 March following the Turkish Cypriot side's rejection of fundamental points in the UN chief's peace plan.

The Cyprus Republic, along with nine more countries, at an Accession Ceremony held in Athens on 16 April signed an Accession Act with the Union toward full EU membership in May 2004.

''In Copenhagen and in The Hague we came closer than ever to a solution, but it is sad that Mr. Denktash did not allow it'', Grossman said.

He was the guest at a PSEKA event where he was honored for what speakers at the event called ''his contribution toward the implementation of US policy on the issue, with which Washington assisted in developments toward 16 April''.

Grossman, who has in the past served as US ambassador to Ankara, said the Kofi Annan peace-plan offered a unique opportunity for a political solution and expressed the hope that the ''united Cyprus can and should join the EU''.

Finally, the US diplomat assured participants at the event that ''they could count on the US government for continuing efforts toward a solution''.

[07] FM and U.S. ambassador discuss State Department's report on human trafficking

Athens, 13/06/2003 (ANA)

In a statement after the meeting, Papandreou said Greece has proved in practice its will to take measures to confront the problem and has even helped other countries facing a similar problem.

''We are on the other side of the bank and not there where the report ranked us,'' the foreign minister said.

Papandreou said this phenomenon is also on the increase due to Greece's bordering a region where certain illegal activities thrive such as prostitution, illegal immigration and drug smuggling.

''Greece is at a geographical crossroads which makes it more vulnerable,'' Papandreou said, adding that ''we have the obligation to improve efforts to tackle the problem, not because of the report or because we are being advised by certain countries, but because we have a special duty towards these people. However, we in no way accept the classification attributed to us by the report.''

Asked whether encouragement by Miller for the signing of a relevant presidential decree constitutes ''crude intervention in our domestic affairs'', Papandreou reminded that ''we belong to an international community where we discuss everything'' and said, as an example, that EU countries discuss with the United States the abolition of capital punishment.

''One should not fear discussions,'' Papandreou said but reiterated that there is a problem with the category in which the report has ranked Greece.

Miller said afterwards that the tabling of such reports by the State Department is required by law in his country. He also said a series of factors determine classification.

Greek gov't chagrined at 'utterly unfair' US State Dept report: Greek government spokesman Christos Protopapas on Thursday said Athens protested strongly over an ''utterly unfair'' report released by the United States State Department, in which Greece was called to task for not preventing the proliferation of trafficking in women.

Protopapas said the report released on Wednesday had made "unacceptable assessments" that failed to acknowledge the Greek government's serious efforts in this matter and the cooperation between the Greek justice, public order and defense ministries with non-governmental organizations to combat human traffic-king.

[08] Parliament passes bill for new Attica landfill sites; Greenpeace comments

Athens, 13/06/2003 (ANA)

The bill was supported only by ruling PASOK MPs and opposed by all opposition parties and four MPs from the ruling party, while 35 parliamentarians were absent.

According to the environmentalist group Greenpeace and the Ecological Recycling Society (OEA), however, the 'battle for the rubbish' in Attica was being fought on the wrong front.

It said a radical and final solution to the problem could only be achieved through the immediate implementation of programs to reduce and reuse packaging, composting and the recovery and recycling of materials and products.

In a press conference on Thursday, Greenpeace director Nikos Haralambidis and OEA president Philippos Kyrkitsos said that the volume of rubbish destined for burial should be minimized before the new landfills were constructed and put into operation in order to reduce both the quantity of refuse and the hazards it presented.

They estimated that this could feasibly be reduced by 80 per cent within the next five years if all the bodies involved were committed to this goal.

They also rejected the incineration of refuse as ineffective and dangerous, since it released dangerous toxins into the atmosphere and produced a high toxic residue that required special management.

[09] Parliament's transparency committee briefed on money laundering

Athens, 13/06/2003 (ANA)

With reference to a bill that would soon be presented in Parliament on speeding up procedures for the prevention and control of money laundering, Nikoloudis said this would introduce measures to control the movement of money through casinos, while a member of the capital markets commission would henceforth man the committee in order to represent the Greek stock market.

He said the lack of controls for the state lottery and football pools were a weakness of the bill, since these might also be a means of laundering illegal gains.

Contraband cigarettes had for the first time ousted the drug trade as the dominant criminal activity, while geographically the focus had shifted from the northeast borders to the western coast, MPs were told. Nikoloudis said that large sums deriving from the trade in contraband cigarettes had been invested in stocks on the Athens bourse in 2000-2001, though this method had declined in 2002 after these groups were discovered.

He also admitted that prostitution and the trade in women was a problem in Greece and that part of the sums confiscated originated from the discovery of such rings.

The greatest quantity of illegal money was laundered through offshore companies, Nikoloudis added, but he said this was a problem for the international community and not one that should or could be dealt with by the committee.

[10] EU Commission proposes favorable arrangements for insular, mountainous regions

BRUSSELS 13/06/2003 (ANA/V. Demiris)

The arrangements form the basis of the positions adopted by the European Parliament�s Committee for Regional Policy, and the relevant proposals had been tabled by Greek Euro-MP Costas Hatzidakis (ND).

The objective of including these arrangements into the draft EU Constitution is to recognize the serious geographic disadvantages facing insular and mountainous regions, and at the same time establish the need for taking special measures in the context of the cohesion policy, as well as other EU policies.

[11] Press Kit� presented by EU Commission Greek office

Athens, 13/06/2003 (ANA)

The press kit comprises a two-page leaflet on each new country containing various useful statistics, e.g. economy, population etc.

The representation also presented the European Union�s Internet portal, Europa, which contains a large variety of information regarding the Union and its policies and bodies.

In an introduction to the edition, the head of the Commission�s representation, G. Markopouliotis notes that the prospect of an EU 25 or 27 or even more member-states later on, sets the conditions where a viable economy, a pluralistic democracy, peace, a state of justice, human rights and the environment would be the common reference point for approximately 500 million people.

Markopouliotis further notes that the Commission�s Greek office has a duty to dynamically and effectively contribute to keeping Greek citizens informed on the EU enlargement course and objectives.

[12] ANA opens new 'free access' webpage on EU Council

Athens, 13/06/2003 (ANA)

The specific webpage is also linked to a special Macedonia-Thrace Ministry site, which contains detailed information and instructions for people who are planning to visits Thessaloniki in view of the EU Council.

The new ANA webpage covers various EU Council-related subjects, and contains details by the Macedonia-Thrace Ministry on the reception of groups planning to stage protest demonstrations, as well as current news in both Greek and English, a photo album of previous EU Council held in Greece, a weekly ANA e-magazine on the Athens 2004 Olympic Games and an e-mail link to contact ANA.

Citizens� opinions would be posted on the same site the following day after submission, after any offensive language used has been taken out.

The webpage will be regularly updated with photos and other EU Council-related material.

[13] Hearing over Nazi atrocities in Greece begins before German high court

BERLIN 13/06/2003 (ANA - P. Stangos)

Greek-Swiss citizen Argyris Sfountouris and his three sisters have filed for compensation over a massacre in Distomo on June 10, 1944 in which 250-plus villagers were killed and the entire village torched by a company of SS troops as a reprisal for the actions of the Greek resistance. Sfountouris was four years old at the time and his entire family was killed.

The court is to issue its final decision on the compensation demanded by the Sfountouris family from the German state in two weeks time, after hearing the presentation of the case by a judge and the arguments of lawyers representing the plaintiffs earlier on Thursday.

The case has already been thrown out by two lower courts on the grounds that international law does not permit individuals to sue a foreign state but only one state to sue another. The two previous cases were heard in Bonn in 1995 and then in Cologne in 1997.

The case was then frozen for six years until a final decision had been reached by Greek courts on the issue - Sfountouris had filed his suit simultaneously in both Greece and Germany.

According to analysts, the chances that the court will find in favor of the plaintiffs are judged to be extremely slim, given the precedent that such a decision would set for the German State, opening the floodgates for similar cases by other victims of Nazi wartime atrocities throughout the world.

[14] Gov't, opposition react to IMF report

Athens, 13/06/2003 (ANA)

Greek government spokesman Christos Protopapas said the report verified that strong growth had led to an increase in employment but "fell outside the framework of the government's ideas for social policy" in other areas. He stressed that the government considered the pensions reform issue to be closed and said that certain measures had achieved a new balance in the labor market.

He ruled out any change in the government's economic policy, saying that this was the policy that Greeks had voted for.

ND Economic Affairs Coordinator George Alogoskoufis, by contrast, accused the government of a "revenue-raking policy studded with communications gimmicks" that failed to address the structural weaknesses of the economy, such as low competitiveness and unemployment.

While noting that ND's policies differed from those proposed by the IMF, he pointed out that many of the points raised in the report were correct.

For the main opposition, the country's low competitiveness was not a problem caused by labor costs but one caused by low productivity, quality problems, imperfect operation of free com-petition, as well as an ineffective public sector and contradictory tax system, he said.

[15] EU bid for growth should not bring fiscal slackness, finmin says

Athens, 13/06/2003 (ANA)

Outlining moves made by Greece as rotating president of the EU, Christodoulakis said that easing fiscal discipline should only be used to cure circumstantial ills.

Among successes of the Greece's six-month presidency of the bloc, which ends on June 30, were securing agreement on adoption of a package of tax measures, and contributing to creation of a framework for an energy tax in the EU, the minister said.

Turning to the domestic economy, he added that the government wanted to further lower the public debt.

[16] EU agriculture Council strives for agreement on new

CAP LUXEMBOURG 13/06/2003 (ANA/M. Kourmousis)

The proposal anticipates a more flexible application of penal-ties, strengthened measures for the environment, guaranteed milk quotas for 2007-2008 as well and a commitment by both the Council and the Commission that the present status concerning olive oil, tobacco and cotton will not change until 2013.

A decision for the new CAP would include a clause envisaging that Greece would receive approximately 16.14 billion euros by 2013 for its primary products, olive oil, tobacco and cotton.

However, as it was expected, France and Germany jointly proposed that CAP remains unchanged by 2006, which provoked a strong reaction by Agriculture and Fisheries Commission Franz Fischler, who said that it was not possible for two member-states to go ahead and strike an agreement and then have it imposed on the remaining 13 member-states.

Greek Prime Minister and current EU Council President Costas Simitis, who arrived in Luxembourg here are part of his final tour of EU capitals, was briefed by Agriculture Minister George Drys on development regarding the new CAP.

[17] Bourse authorities to probe share moves of oil firms set for merger

Athens, 13/06/2003 (ANA)

Addressing a conference arranged by KPMG, Alexakis was apparently responding to a speech made earlier by the chairman of the Marfin Group, Andreas Vyenopoulos, who had said that both stocks had behaved oddly before the announcement.

Under the merger plan, state owned Hellenic Petroleum is to absorb private sector Petrola.

Two senior bankers - the deputy managing director of EFG Eurobank Ergasias, Nikolaos Karamouzis, and the deputy governor of the National Bank of Greece, Apostolos Tamvakakis - told the conference that their banks had not taken part in such transactions, and had not benefited from announcement of the planned merger.

[18] Bank of Greece to lift all consumer credit restrictions June 20

Athens, 13/06/2003 (ANA)

Nikolaos Garganas, the central bank's governor, signed an act envisaging the abolition of a 25,000 cap on consumer and personal loans and the lifting of other restrictions in the credit market.

A Bank of Greece statement said the decision was part of a plan to harmonize monetary policy in the euro system, based on the principle of open market economy with free competition.

The central bank said that the decision was based on a pan-hellenic survey showing that Greek households' average debt was smaller compared with the eurozone average (22.3 percent, 47 percent, respectively).

[19] Gov�t sees solution to Halkidiki Mining Co next week

Athens, 13/06/2003 (ANA)

Mr Pahtas made these comments after meeting with a representative of foreign investors interested in participating in the new business group. The Greek minister stressed that a new management would offer a viable solution to the area and stressed that talks would continue throughout next week.

Mr Pahtas, however, declined to name the foreign investors interested to participate in a joint venture with Larco, Themeliodomi and local authorities. He said that a sum of around 22 million euros were needed for the mine to resume operations and noted that another 250 million euros were needed to complete the investment.

[20] Greek FinMin, civil servants' union discuss new payroll system

Athens, 13/06/2003 (ANA)

Speaking to reporters, after a meeting with Economy and Finance Minister Nikos Christodoulakis, Mr Papaspyrou stressed that the union's position was to integrate all benefits to a new payroll system and said a proposal by the Greek FinMin for a gradual integration of a performance bonus with the basic salary was a positive step.

Mr Papaspyrou also said that a procedure of collective talks with the government on pay rises to civil servants were expected to be completed by early July.

Mr Christodoulakis, speaking to reporters, said that a new payroll system in the public sector aimed to establish a new relation between wages and hierarchy in the sector and to offer incentives for a more efficient public administration.

[21] Verelis expects talks with OA's unions to be concluded by end June

Athens, 13/06/2003 (ANA)

In exclusive comments to ANA, Mr Verelis said he hoped to have a positive conclusion of talks by the end of June offering a permanent solution to a problem that has burdened the Greek people with several hundred billion of drachmas and has led to the intervention of the European Commission.

The Greek minister said there was agreement with Olympic Aviation pilots and that there were a few points of disagreement with OA's pilots and cabin crew unions.

Mr Verelis was adamant that everything would move smoothly with a New Olympic Airways even if OA's pilot and cabin crew rejected the government's plan. ''We have taken all necessary measures for NOA to operate smoothly,'' he stressed.

Mr Verelis said that a total of 70 million euros were needed for NOA's operation in early stages and said that this money would come from commercial banks.

[22] Greek advertising spending up 18 pct in May, yr/yr

Athens, 13/06/2003 (ANA)

Television maintained its leadership in the market, attracting 91.4 million euros in advertising spending in May, or 47.44 percent of total spending, followed by magazines (68.5 million euros or 35.55 percent), newspapers (23.6 million euros or 12.26 percent) and radio stations (9.1 million euros or 4.75 percent).

Antenna TV led the market with 29.3 million euros or 32.05 percent of the total market, followed by Mega, Alpha, Star, Alter and ET1 (26.96 percent, 14.57 percent, 12.69 percent, 8.09 percent and 3.41 percent, respectively).

[23] Greek stocks jump to new highs on Thursday

Athens, 13/06/2003 (ANA)

The index rose 1.67 percent to end at 1,928.19 points, with turnover an improved 203.4 million euros.

The Publication, Insurance, Bank and Wholesale sector scored the biggest percentage gains of the day (10.49 percent, 5.12 per-cent, 3.61 percent and 3.09 percent, respectively), while Emporiki (7.14 pct), National (3.78 pct) and Alpha Bank (3.64 pct) were lead gainers in the bank sector.

The FTSE/ASE 20 index for blue chip and heavy traded stocks rose 2.14 percent, the FTSE/ASE MID 40 index ended 0.68 percent higher, the FTSE/ASE SmallCap 80 index rose 2.50 percent and the wider FTSE/ASE 140 index ended 1.93 percent up.

Broadly, advancers led decliners by 268 to 61 with another 34 issues unchanged.

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