Athens News Agency: Daily News Bulletin in English, 03-07-19

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

CONTENTS

[01] Gov't further clarifies proposals for new electoral law; opposition reactions

[02] Gov't wants consensus for 2005 presidential election, spokesman says

[03] Athens backs Cyprus president's position on UN peace plan for Cyprus

[04] PM and foreign minister discuss Greek -Turkish relations, Cyprus

[05] ND leader issues release on anniversary Of Turkish invasion on Cyprus

[06] Gov't to review assets of PASOK ministers and deputies, past and present

[07] Commissioner Diamantopoulou briefs PM on EU issues

[08] Greek ambassador in U.S. on Greek foreign policy priorities and challenges

[09] Alternate FM at the Socialist International conference in Rome on 18, 19 July

[10] Current account deficit widens in Jan-May

[11] Gov't, civil servants reach agreement on new pay scale

[12] Lambrakis may forge alliance with German publisher

[13] Culture minister tours Olympics projects in Iraklion, Crete

[14] Giotopoulos' partner continues testimony in N17 trial

[15] Washington supports Annan peace plan for Cyprus as the only basis

[16] British MPs call for resumption of Cyprus talks

[01] Gov't further clarifies proposals for new electoral law; opposition reactions

Athens 19/07/03 (ANA)

Under the proposed new system, up to 80 per cent or 240 seats in the House will be distributed among the parties that collect the 3 per cent minimum required to enter Parliament, based on their nationwide share of the vote, while the remaining 20 per cent will be divided between the first and second parties so that there can be a governmental majority.

It also introduces a split-vote system, with voters casting two separate ballots in different ballot boxes, one for the party of their choice and one for individual MPs.

Another important change is the abolition of an article that forbids parties from forming alliances prior to elections.

Skandalidis said the government wished to begin dialogue with the other parties on the proposals at the beginning of September and had for this reason kept several of them open for discussion.

Among these was a proposal to reduce the number of large electoral districts from 13 at present to nine or 10 and to increase the number of smaller electoral districts. Also left open are the precise percentage of proportional representation, with 80 per cent recommended, the election of MPs from a list for large electoral districts and the time that the new law will go into effect.

Commenting on main opposition New Democracy's flat refusal to discuss any changes to the electoral system, Skandalidis stressed that the new system was not tailored to suit the needs of PASOK but of democracy, attributing ND's reaction to fear.

He said the differences with the smaller opposition parties were ''insignificant before the need to formulate a new policy'' and called on ''progressive forces'' to support the government's proposals, stressing that PASOK had no ulterior motives in view of the next elections and its prospects of victory.

Skandalidis invited all the parties to join in the dialogue on electoral reform in the early days of September, when the draft bill envisioned by the government had been prepared and all the details were known. He said the government intended to table the bill at the end of October so that it could be passed in November.

Opposition parties reject gov't proposals:

In announcements on Friday, however, the smaller opposition parties rejected the government's proposals for electoral reform, saying that these merely perpetuated and possibly exacerbated the inequities of the present system.

Both the Communist Party of Greece (KKE) and the Coalition of the Left, Movements and Ecology insisted on a shift to simple proportional representation.

KKE leader Aleka Papariga ruled out her party's participation in dialogue on the new law and said the new system would further reinforce bipolarity in politics.

She stressed that it would continue to allow governments with a minority share of the overall vote to have parliamentary majorities by ''stealing'' seats from smaller parties - particularly due to the 3 per cent minimum for parliamentary representation. On pre-election alliances, Papariga claimed the government was opening the way for stronger parties to ''blackmail'' weaker ones to either cooperate or risk being left out of Parliament.

Papariga also rejected government arguments that the new measures would combat corruption and graft, saying that the system itself and the dominant policy were a ''hothouse'' for immoral behavior.

Coalition leader Nikos Constantopoulos said his party would not be ''involved in the communication dilemmas fabricated by the government'' and would wait for the government's official briefing before responding.

He said this response would not aim to improve the government's proposals but to make it clear that these did not address the need for structural changes to the political and electoral system.

FM Papandreou on proposed changes to electoral law:

Foreign minister George Papandreou explained on Friday that the proposed changes to the electoral law would enter into effect inevitably after 2005 so that there would be no complications with the election of President of the Republic.

Asked to comment on main opposition New Democracy criticism of the proposed changes to the electoral law, unveiled by the prime minister on Thursday, Papandreou said "we invite ND to a dialogue, not to an effort to impose changes".

"The goal is upgrading the political life, transparency, credibility, and greater participation of the citizens, and ND has no excuse for not taking part in the dialogue," Papandreou said.

Main opposition again rules out dialogue on electoral law: Main opposition leader Costas Karamanlis once again ruled out dialogue on government's proposals for reforming electoral law on Friday, saying in a speech on the Ionian island of Lefkada that the issue was closed for New Democracy.

He accused the government of opportunism for stirring up the issue of electoral reform and said that it was a joke to suggest that this was an adequate way to deal with corruption.

''The nation's interests demand that elections take place straight away,'' he added.

''The country can no longer stand the party-political and personal games of the establishment's leadership group. It cannot stand a nine-month extension of the pre-election period declared by PASOK,'' he said.

He dismissed the entire issue as a government ''ploy for managing defeat'' that did not concern the electorate, which was faced with major problems such as corruption, unemployment, high prices, poor education and third-world health services.

Karamanlis was highly critical of the government's record on a number of issues, particularly in matters of corruption and the economy, and accused it of being responsible for the biggest-ever redistribution of wealth in favor of the rich through the stock market.

He said ND had taken the measure that the government was afraid to take by tabling an amendment to lift secrecy on the stock market codes of political figures on Thursday.

Government's reply to ND :

Responding to Karamanlis's statements on the issue of electoral reform, government spokesman Christos Protopapas said the main opposition had been forced to adopt ''deeply conservative tactics'' by its ''unfortunate and mistaken choice to demand early elections''.

He said this had forced ND not to participate in dialogue, to refuse any kind of change and to ''pour scorn and nullify even its own institutionalized role in the political life of the country''.

He accused Karamanlis of ''hypocritically and dangerously attempting to deceive the Greek people'' by equating the proposal for a new electoral law with the upcoming elections in 2004, even though it was known that the new law could apply after spring 2005.

Regarding ND's proposed amendment for opening the stock market codes of MPs and key state officials, Protopapas said it was made up of "chaotic and impracticable procedures to muddy the waters and allow ND to continue slinging mud at PASOK and the government".

ND leader says election law issue 'aimed at diverting attention from problems' :

Main opposition New Democracy party leader Costas Karamanlis, speaking on the Ionian island of Zakynthos on Friday, said the raising of the election law issue by the government aims at diverting the citizens' attention away from the major problems of daily life, unemployment, the high cost of living and corruption.

''The raising of the election law issue, at the same time that they themselves have placed the country in pre-election race, does not contribute to the upgrading of public life. It is not possible for them to have accepted the same system for so many years and to want change now that they are seeing that they have no hope of recovery. It is not possible for a responsible and serious government to call on the parties to ignore the constitution to serve its party interests,'' he said.

''For us, the discussion on the election law closes here. What is important for upgrading public life is respect by all for the rules of the game. This is the essence. Such discussions take place after elections,'' he added.

Karamanlis said the way and time the prime minister raises the election law issue show a panic syndrome of defeat not only in the next election but even in the election following the next election.

The ND leader stressed that the citizen's major problems should be discussed. The issues of people living under the poverty level, the upgrading of health and education, the effective protection of the citizen's life and property and the tackling of corruption which devours 2.5 trillion drachmas from the Greeks' resources.

[02] Gov't wants consensus for 2005 presidential election, spokesman says

Athens 19/07/03 (ANA)

He said that several sectors of parliamentary work would be up and running during the summer sessions of the House and that there was time for a ''rich dialogue'' on the planned reforms.

''We are not in any hurry, we want MPs to participate in the dialogue, which will not have ended in September,'' he said.

Prime Minister Costas Simitis unveiled the government's proposals for reforming the existing electoral system after an inner cabinet meeting on Thursday, inviting the opposition parties to participate in public dialogue on the proposed reforms.

According to the government, the present system was pushing MPs into an ever-escalating orgy of pre-election spending in order to be able to compete against the competition and thus encouraged phenomena of graft and made politicians dependent on big business.

He also clarified in his statements that a date for when the new system would go into effect could be set after the presidential election of 2005 so that it did not interfere with this process.

A minimum of 180 yea votes in Parliament are required to elect a president, while failure to agree on a candidate would lead the country into new general elections.

Asked to comment on speculation that Simitis intended to run for president himself in 2005, Protopapas said that ruling PASOK hoped Simitis would be prime minister at that time.

[03] Athens backs Cyprus president's position on UN peace plan for Cyprus

Athens 19/07/03 (ANA)

''Our adversary is Rauf Denktash (Turkish-Cypriot leader)'', government spokesman Christos Protopapas said at his regular press briefing when asked to comment on the Cyprus president's statements.

Protopapas added that both Athens and Nicosia had earlier stressed that the UN plan was a basis for negotiations.

Cyprus has been divided since 1974 when Turkish troops occupied the island's northern part.

UN-brokered talks at The Hague collapsed on 13 March in the face of the Turkish-Cypriot side's intransigence, following months of intensive deliberations by UN Secretary-General Kofi Annan on a peace plan he initially tabled in November with the internationally recognized Cyprus government and the leader of the minority Turkish-Cypriot community for reuniting the divided island republic of Cyprus.

[04] PM and foreign minister discuss Greek -Turkish relations, Cyprus

Athens 19/07/03 (ANA)

Emerging from the meeting, Papandreou said that Greece was continuing to operate within a European framework with regard to both Turkey and Cyprus, since this gave a new momentum to efforts for a Cyprus solution.

He said this framework presented an opportunity for Greece and Turkey to truly instill a climate of peace and cooperation on a permanent basis.

Regarding his upcoming trip to Sweden and an invitation by Swedish radio to host a 1.5-hour political program, Papandreou said the visit would be a chance to meet Greek expatriates in the country and to promote Greece and Greek positions in Sweden.

[05] ND leader issues release on anniversary Of Turkish invasion on Cyprus

Athens 19/07/03 (ANA)

''The achievement of a fair, viable and functional European solution to the Cyprus issue is what is sought. A solution based on relative UN decisions and resolutions and on respect for the European aquis communautaire. The new reality following the EU accession of Cyprus creates the conditions for such solution on the basis of UN Secretary-General's plan'', the release said.

''The other side'', the release continued ''should consider the huge responsibility it assumes by depriving the Turkish Cypriot community of the European prospect by dwelling on obsolete objectives and practices''.

''Convinced about the need for the assumption of EU initiatives, the New Democracy will continue to participate, with all its powers, in the national effort. It will continue to extend its unreserved support and solidarity to the leadership of the Cyprus Republic and the Cypriot Hellenism'', the release concluded.

[06] Gov't to review assets of PASOK ministers and deputies, past and present

Athens 19/07/03 (ANA)

Interior Minister Costas Skandalidis and Parliament President Apostolos Kaklamanis, coming out of a meeting with Prime Minister Costas Simitis said that the premier on Tuesday would for-ward a letter to PASOK deputies to inform them about the implementation of the announced measures.

Kaklamanis said that a recently established Parliament review committee comprising one each representative from the parties in Parliament and three top justices, would be in a position to make the comparison of assets reflected on the declarations submitted by all current, as well as former, government officials and deputies.

On his part, Skandalidis said that ''the process will become clear with the submittal of the declarations by 15 September and we will have the actual picture two months after that, at the latest''.

Kaklamanis said ''the interior minister will make recommendations for legislative changes with regard to the statements of means in order to activate the up-to-now dormant review on other individuals outside the political spectrum, including state officials, various organizations, banks, state enterprises, members of the Mass Media, mayors and prefects, so that scrutiny is not restricted to the 'political world' that has been smeared by many for whom the review is dormant.''

''In the political world, with the exception of officials who currently hold, or have held or will hold offices at ministries of the production sector in particular, deputies are not in a position to commit any of the actions attributed to the political world by the business and mass media establishments who have their share in the cultivation, participation and gain from all the morbid phenomena in the economic and public life of the country'', he said.

Skandalidis said that by the end of August he would present his recommendations for adjusting the law on asset review for individuals outside the ''political world'', adding that this would not be the first law to be tabled in the Parliament which is the only body that can make changes to legislation regarding the ''statements of means''.

''The new law will encompass all recent decisions, including the ban on stock-market dealings, participation in off-shore companies and expansion of Supreme Court authority for reviewing property declarations submitted by prefects, mayors, bank officials and individuals involved in public procurement'', the minister said.

With regard to a proposal submitted on the issue by main opposition New Democracy (ND) party, Skandalidis said it was made out of ''political expediency'' and that it contained ''chaotic and hard to implement procedures''.

''Moreover, the proposal appears to be selective since it targets only the state administration, and as a matter of fact government officials, leaving out anything that could touch upon the ND'', he added.

Gov't says ND proposed amendments on ''transparency law'' are ''chaotic'' :

The government on Friday said that a proposal submitted by the main opposition New Democracy (ND) party for amendments to legislation on ''statements of means'' contained ''chaotic and hard to implement'' procedures intended to paint a murky picture and preserve the smearing campaign against the PASOK party and the government.

At his regular briefing, government spokesman Christos Protopapas cited five points of criticism against the law amendment submitted by ND for reviewing the ''statements of means'' submitted by deputies, as follows:

The proposed amendment in question required a Presidential Decree, which would put a plug on the issue.

Based on one of the proposed provisions, the review would be conducted by those responsible for receiving the ''statements of means'', who, however, do not have access to mechanisms or any foreign auditing authorities. Therefore, the Capital Market Com-mission would be the only mechanism with the ability to act on this task, while fragmentation of the authority would create con-fusion and ineffectiveness.

The ND proposal covers a broad spectrum of persons, it would de facto result in erosion of the principle of confidentiality for stock-market transactions and it would lead to a climate of general suspicion opposite the institutions and the market.

The amendment proposed by the ND is infested with legislative shortfalls that would make its implementation problematic.

The requirement for submitting miscellaneous data and documents would make the review difficult and impossible.

In conclusion, Protopapas stressed that ''ND is not interested in transparency or the scrutiny of the individuals that handle public money, it is interested in preserving the smear campaign against PASOK and the government.''

[07] Commissioner Diamantopoulou briefs PM on EU issues

Athens 19/07/03 (ANA)

Diamantopoulou afterward told reporters that she had briefed the premier on the discussions currently underway at the Com-mission, including financial planning for the period 2006-2013, Community frameworks and farm policy.

Asked about unemployment, the commissioner said that Greece was the only EU member with a 1-percent drop in unemployment in recent surveys, and that the rest of the EU partners, with the exception of Italy, exhibited rising trends in unemployment due to recession.

Quoting a study currently being conducted within the Union on extending the span of working life, she noted that this was very low in Greece, with employment levels falling sharply for over-55s.

''The object is to create jobs, not take people out of the labor market [through early retirement]'', the commissioner said.

[08] Greek ambassador in U.S. on Greek foreign policy priorities and challenges

WASHINGTON 19/07/03 (ANA - T. Ellis)

His address focused on three major sectors: Greece�s position in the European Union and NATO, Greek-U.S. relations and Greece�s geopolitical position in the Balkans and the eastern Mediterranean, with special reference to the Cyprus and Middle East issues.

Savvaides referred to the country's positive course in the EU and to the work it accomplished during the Greek EU presidency, noting the praise it received for the way it handled challenges which emerged, particularly in relation to the crisis in Iraq.

On the question of Greek-U.S. relations, he stressed that they are characterized by the lack of substantive problems and that they are moving in a climate of mutual trust, common ideals and common pursuits.

Commenting on the Balkans, the ambassador set out the initiatives of the Greek government on the region's stabilization with private investments amounting to 2.4 billion dollars, a national economic reconstruction program totalling 550 million dollars and the incorporation of countries in the western Balkans in European institutions.

Savvaides also underlined the need for a solution to the issues of Cyprus and the Middle East to secure stability in the eastern Mediterranean.

[09] Alternate FM at the Socialist International conference in Rome on 18, 19 July

Athens 19/07/03 (ANA)

The first day of the conference will focus on discussions on postwar Iraq while the situation in the Middle East will be central to discussions on the second day.

According to press reports, Yiannitsis on the second day of the conference will speak on Greece's support for the ''road-map'', the US-EU-Russia-UN-brokered peace plan for the Middle East.

[10] Current account deficit widens in Jan-May

Athens 19/07/03 (ANA)

The increase in the current account deficit was mainly due to the country's inability to absorb European Union funds at a brisker pace. EU transfers in January-May were 24.6 percent down in the corresponding period of 2002, the Bank of Greece said in a statement.

The trade deficit widened slightly to 9.42 billion euros from 9.36 billion euros in January-May of last year, the statement said.

The services surplus totalled 2.6 billion euros with foreign exchange from tourism declining to 1.57 billion euros from 1.75 billion euros a year earlier, it added.

[11] Gov't, civil servants reach agreement on new pay scale

Athens 19/07/03 (ANA)

The ADEDY civil servants union said in a statement that it had accepted the finance ministry's offer of a monthly base starting salary of 1,391 euros for employees with university degrees from 774.97 euros at present.

The starting salary for staff that has completed mandatory education will be 590 euros per month from 398.37 euros.

Pay rises are to fall between 4.1 percent and 6.4 percent including the incorporation of allowances into base pay, with workers taking home an extra 26 euros to 93 euros per month from January.

Pensions are to increase by 5.0 percent.

The finance ministry said that 630 million euros would be allocated from the state budget to cover the higher payroll for civil servants, 50 percent higher than for incomes policy in 2003.

[12] Lambrakis may forge alliance with German publisher

Athens 19/07/03 (ANA)

Lambrakis' main shareholders hold 65.5 percent of the company's total share capital, the Greek firm said in a statement.

Stocks end up, break through resistance:

The Athens bourse finished higher on Friday with buying interest taking the general index above resistance at 2,100 points during the session, traders said.

The general share index gained 1.05 percent to end at 2,085.49 points. Turnover was 250.1 million euros.

The FTSE/ASE-20 index for blue chip and heavily traded stocks ended 1.45 percent up; the FTSE/ASE-40 for medium capitalization paper 0.81 percent higher; and the FTSE/ASE-80 for small cap equities finished with gains of 2.13 percent.

Of stocks traded, advances led declines at 250 to 88 with 33 issues remaining unchanged.

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