Athens News Agency: Daily News Bulletin in English, 03-12-19

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

CONTENTS

[01] PM Simitis reviews 2003 political developments; guarantee fund for SMEs set up

[02] Gov't offers same answer to queries on 'succession'

[03] Athens-Piraeus super-prefect meets Parliament speaker

[04] Karamanlis again calls for early elections; ND begins fundraising

[05] Main opposition says gov't paid over the odds for Apache helicopters

[06] FYROM president stresses need to resolve 'name issue' with Greece

[07] Commissioner Barnier makes account of EU regional policy activities

[08] Parliament begins debate on budget for 2004

[09] State budget deficit widens in January-October

[10] Athens Bourse Close: Stocks edge up in bid to consolidate

[11] European Commission sends warning to Greek authorities for directive violations

[12] ND Parliament group unveils website

[13] Appeals Council due to issue ruling on ELA case on Friday

[14] Events held marking '175 years of Greek-Russian Diplomatic Relations'

[15] Gov't expects 70-80,000 applications for voting precinct change

[16] Weston: all four parties need to show necessary political will

[17] Cyprus reference in European Parliament resolution

[01] PM Simitis reviews 2003 political developments; guarantee fund for SMEs set up

Athens, 19/12/2003 (ANA)

During the meeting, the government�s proposal for a new guarantee fund for SMEs was unveiled, with Simitis saying the body should facilitate smaller businesses' dealings with lenders.

Simitis also referred to preparations for the 2004 Olympic Games, the economy, anti-terrorism measures, major infrastructure works and the latest difficulties that arose, on the EU level, during the latest inter-governmental conference.

Greek EU presidency cited: Specifically, Simitis said the main political development for 2003 was Greece�s EU presidency during the first half of the year, which he said was acknowledged by all as successful.

He said the main issues encountered during the Greek presidency were the Iraq crisis and the accession agreement signed by 10 new EU members, including Cyprus.

�Cyprus is a member of the European Union and essentially concludes its (accession) process on May 1,� Simitis stressed.

Regarding closely watched Olympic preparations, Simitis said plans are proceeding on schedule and that Greece will be ready and secure to host a successful 2004 Games.

Referring to the recent deadlock at the Brussels Summit over a European constitution, Simitis said: �On the one side there is the inter-governmental outlook, namely, a loose association. The extreme view in relation to this loose association is one that foresees the EU as a type of international organization, like the Organization for Economic Cooperation and Development (OECD). The other view is the one shared by our country, which wants a strong Union, partnerships; it wants common policies, not just on agricultural issues, but in finance, fiscal and tax policies, social issues; It wants the EU to follow a federal model,� Simitis told his ministers.

Finally, he said Parliament debate on the 2004 budget is an opportunity to promote the government�s work.

Economy and Finance Minister Nikos Christodoulakis as well as Development Minister Akis Tsohatzopoulos also briefed other Cabinet members.

PM launches guarantees fund for small firms: Prime Minister Costas Simitis on Thursday inaugurated a guarantees fund for small enterprises in order to ease funding for the sector.

''These firms are often ignored by banks as they are usually new, without a name or history in the market, which have yet to show that they can post growth and profits; and which lack the guarantees that banks require of successful operation," Simitis said.

''This is a very good example of the free market system failing in its role of intermediary, a failure to provide assistance for the growth of small and medium sized enterprises. The banks justifiably fear high credit risk, and, as a result, intervention is required. That's why the government has set up the fund,'' he said.

Speaking in the development ministry, he noted that small and medium sized enterprises were the backbone of the economy and spurred employment.

Greece has the largest proportion of self-employed in the European Union, more than 26 per cent of the working population; and it generates more new companies than the EU's other member countries.

Development Minister Akis Tsohatzopoulos said the presence of the prime minister at the inauguration and of the central bank governor showed how seriously the government was taking the fund; and how seriously it wanted the banks to take the new arrangement.

One in five new companies was forced to close down within two years, and one in two within seven years, Tsohatzopoulos said.

At the same time, the net outcome was favorable with four per cent more firms opening than closing, double the EU average, he added.

[02] Gov't offers same answer to queries on 'succession'

Athens, 19/12/2003 (ANA)

Spokesman Christos Protopapas has stressed, three days in a row, that Simitis will undoubtedly be ruling PASOK�s candidate for the prime minister in the next elections, while also clarifying that the premier has no intention of addressing repeated rumors and political speculation.

Moreover, he called recent statements by Foreign Minister George Papandreou, the politician referred to in most press reports as Simitis� likeliest successor, as self-evident.

Finally, the spokesman again flatly rejected the prospect of any succession at the Maximos Mansion or at ruling PASOK�s helm.

FM says he has excellent cooperation with PM and party leader: Foreign Minister George Papandreou, who is on a two-day tour of the Magnissia prefecture in central Greece since Wednesday, said on Thursday he has excellent cooperation with Prime Minister and PASOK party leader Costas Simitis, adding that ''this is proved by the successes we have both abroad and at home.''

Papandreou was replying to a question on whether PASOK is in danger of entering a new cycle of introversion due to prolonged scenarios on leadership succession and told reporters ''as you can see we have continuous and considerable contact with the Greek citizen and there is no introversion.''

On the second day of his tour, Papandreou inaugurated the Citizen's Service Centre at Nea Achialos and participated in an event on the ''Olympic Truce.''

Addressing a party banquet in Volos on Wednesday night, Papandreou called on party supporters to rally round Simitis to achieve victory for PASOK in the upcoming general elections.

The foreign minister added that the mass presence of supporters there ''refutes Cassandras'' in the best possible way who are speaking of a possible defeat for the ruling party in the elections.

[03] Athens-Piraeus super-prefect meets Parliament speaker

Athens, 19/12/2003 (ANA)

During the meeting she asked for a commitment from the political parties that they will find a solution for the financial problems of prefectural authorities.

Kaklamanis pledged to inform Prime Minister Costas Simitis of the request in person and to call the finance and interior ministers to his office to examine the issues so that the appropriate ministers and the parties could take a position on specific issues during the parliamentary debate on the budget.

The Parliament speaker stressed that legislation on prefectural government funding existed and should be implemented.

[04] Karamanlis again calls for early elections; ND begins fundraising

Athens, 19/12/2003 (ANA)

Committee members decided to begin a nationwide fundraising campaign immediately.

On his part, Karamanlis reiterated that the country remains mired in an extended election period before again calling for early elections as soon as possible.

�The country must turn the page, and 2004 is a milestone year,� he said, adding that ND�s fundraising campaign is based on the principle of transparency, something he said will also be a priority of his government.

The Simitis government has on numerous occasions stressed that it will exhaust its four-year mandate, which means elections in late April or early May.

[05] Main opposition says gov't paid over the odds for Apache helicopters

Athens, 19/12/2003 (ANA)

They said the price paid for the helicopters under the sales contract was "unrealistically high" and contravened laws on armed forces procurements.

Quoting government announcements, they said the agreement for the purchase of the Apache helicopters and the self-protection system HIDAS signed on August 28, 2003 was for 675 million dollars, or about 56 million dollars per helicopter.

The MPs noted that a bid made by the US government in a previous Greek tender for 28 helicopters had been just 42.4 million dollars per helicopter.

In the framework of their question, the MPs also alleged systematic graft by officials within the government and claimed that there were several "suspicious" contracts for arms procurements, such as that for the Leopard-3HEL tanks and others.

[06] FYROM president stresses need to resolve 'name issue' with Greece

SKOPJE 19/12/2003 (ANA - N. Fragopoulou)

While noting the Balkan state's 'right' to be named in accordance with the wishes of its citizens, Trajkovski also stressed that Greece had a major role to play in the incorporation of Balkan countries in the European Union.

''The most important element of our cooperation with Greece this year has been the ratification of the Association and Stabilization Agreement with the EU and Greece's decisive and very important desire to play a leading role in promoting the process of incorporating Southeast European countries into the EU. I truly believe that Greece will continue to be our main supporter in making our country an EU member-state,'' he said.

Trajkovski noted that talks to resolve the 'Macedonia issue' were continuing and were very important because they were an issue of historic and strategic importance for FYROM.

''I believe there will be a solution of this issue in the near future, in the framework of a just and internationally acceptable solution, which will reflect the sovereign right of an independent country to be named the way its citizens chose,'' he added.

Greece objects to the use of the name 'Macedonia' by the tiny state, which was established in 1991 after the fragmentation of former Yugoslavia, for both historical reasons and because it shares a border with a northern Greek province of the same name.

[07] Commissioner Barnier makes account of EU regional policy activities

BRUSSELS 19/12/2003 (ANA - M. Spinthourakis)

According to data provided by the commissioner, as of 1985 onwards the GDP per capita of the four Cohesion countries (Greece, Spain, Portugal and Ireland) has achieved considerable increases, particularly that of Ireland.

More specifically, in 1985 Portugal's income per capita corresponded to about 55 percent of the EU's average GDP per capita, those of Greece and Ireland to about 60 percent and that of Spain to about 70 percent.

Since then, Ireland's GDP per capita reached 90 percent of the EU average in 1995 and 125 percent in 2002. Those of Greece and Portugal amounted to 65 percent in 1995 and to 71 percent in 2002, while that of Spain was about 79 percent in 1995 and 86 percent in 2002.

As a result of this data, Barnier expressed support for the continuation of the EU's regional policy and highlighted its positive characteristics.

[08] Parliament begins debate on budget for 2004

Athens, 19/12/2003 (ANA)

A roll-call vote is due around midnight on Monday after five days of debate.

By means of the budget the government wants to demonstrate that economic growth will not come to an end after the Athens 2004 Olympic Games.

The budget contains a growth target of 4.2 percent next year from 4.0 percent in 2003, reflecting an anticipated 7.0 percent rise in investments.

It also forecast an increase in the export of goods and services; a decline in unemployment to 8.0 percent from 9.0 percent currently; a 2.5 percent rise in productivity; and a 3.4 percent rise in real wages.

Inflation is forecast to fall to 2.5 percent in 2004 from an anticipated 3.0 percent this year.

[09] State budget deficit widens in January-October

Athens, 19/12/2003 (ANA)

The deviation from the target was due to a 9.7 per cent rise in spending in the same period against an annual target of 6.4 per cent, the accounting office said in a statement.

Revenue in the regular budget rose by 5.2 per cent against an annual target of 5.1 per cent, the statement said.

[10] Athens Bourse Close: Stocks edge up in bid to consolidate

Athens, 19/12/2003 (ANA)

The general share index gained 0.23 percent to end at 2,187.81 points. Turnover was 133.1 million euros.

The FTSE/ASE-20 index for blue chip and heavily traded stocks ended 0.24 per cent up; the FTSE/ASE-40 for medium capitalization paper 0.30 per cent higher; and the FTSE/ASE-80 for small cap equities finished with gains of 0.69 percent.

Of stocks traded, advances led declines at 175 to 115 with 62 issues remaining unchanged.

FOREIGN EXCHANGE

Closing rates of December 18 2003

Parities in euro

For. Exchange Buying Selling

US Dollar 1,250 1,221

[11] European Commission sends warning to Greek authorities for directive violations

BRUSSELS 19/12/2003 (ANA - A. Simatos)

The first case concerns technical aid provided for farmers in Greece. According to the Commission, the Greek government used every year to conclude, in accordance with suitable procedures, technical aid contracts with specialized companies for every region.

The Commission added that in 2001, and contrary to its practice until then, the Greek government planned a draft program and contracts applied were awarded with negotiations.

According to the Commission, all the contracts have the same aim and, consequently, they should have been examined together since they fall under directive 92/50 concerning public service contracts.

The second case concerns the procedure followed when the Environment, Town Planning and Public Works Ministry wanted to hire a technical adviser for the construction of biological cleansing installations at Psytalia.

The Commission stresses that the ministry called on the interested parties to submit their proposals but only used awarding criteria for its choice and sidestepped choosing criteria which, according to directive 92/50, shape a list of interested parties in the early stage of the process through which the final choice will take place.

[12] ND Parliament group unveils website

Athens, 19/12/2003 (ANA)

ND Parliament group secretary Dimitris Sioufas called the website a new way of communication between the party�s deputies and Euro-MPs with citizens.

[13] Appeals Council due to issue ruling on ELA case on Friday

Athens, 19/12/2003 (ANA)

The same sources said the appeals justices� plenum will meet on the same day and name 30 of its members that will be included in a lottery to select the panel of judges for the ELA trial.

The five suspects in custody in connection with the case are Aggeletos Kanas, Irene Athanasaki, Christos Tsigaridas, Costas Agapiou and Mihalis Kassimis.

[14] Events held marking '175 years of Greek-Russian Diplomatic Relations'

Athens, 19/12/2003 (ANA)

He said the Russian Federation and its people have a very important position and role both in the Black Sea and the broader region as well as in the whole world, for stability, security and peace.

Taking part in the events, organized by the Diplomatic Academy and the foreign ministry's Historical and Diplomatic Archive Department, are diplomats, scientists and personalities from the two countries.

Within the framework of the events, an exhibition is also being held of documents from the diplomatic archives of the two countries which Magriotis underlined contain ''the rich and important reserve of the relations of the two countries.''

[15] Gov't expects 70-80,000 applications for voting precinct change

Athens, 19/12/2003 (ANA)

Interior and Public Administration Minister Costas Skandalidis made the announcement following a session of an inter-party election committee meeting, held at his ministry.

The upcoming general elections will be the first allowing citizens to vote where they reside instead of where they first registered, usually their home towns.

[16] Weston: all four parties need to show necessary political will

NICOSIA 19/12/2003 (CNA/ANA)

Speaking at a press conference on Thursday, as he continues his contacts here and before flying off to Turkey, he said the Annan plan, a UN peace proposal on a comprehensive settlement, is the only realistic vehicle to find a negotiated settlement.

Referring to his meetings in the Turkish-occupied north of Cyprus, he said he does not see eye to eye on everything with Turkish Cypriot leader Rauf Denktash but said several Turkish Cypriot political leaders share Washington's outlook on the way forward towards a solution.

On the situation in occupied Cyprus, after the ''parliamentary elections'' last Sunday, Weston said that it is politically unsettled but the result should encourage Turkish Cypriot leaders to move towards negotiations.

Weston continues to believe that it is possible to find a negotiated agreement by May 1 next year, when Cyprus joins the European Union.

''I believe the Annan plan is the only realistic vehicle for obtaining a settlement,'' Weston told the press.

Asked if he could do business with Turkish Cypriot leader Rauf Denktash, who says the plan is dead and buried, he said he had ''a very long and I hope productive meeting'' and added ''I would not hide the fact that we do not agree on everything, we will seek agreement on a basic issue as the only forward.''

Asked if Denktash remains the main interlocutor, he said the SG in his good offices mission considers the community leader as his main interlocutor.

''At this point in time remains Mr. Denktash, whether that will be the case in the future I cannot answer that question, that is a lot of what is going on in the north,'' he added.

Replying to questions, he said that several Turkish Cypriot political leaders would be much closer to the position of the US.

''The issue is not changing the Annan plan, the issue is how do you get back into negotiations on a settlement, the key factor is how to get back into negotiations on the basis of the Annan plan using the good offices mission of the Secretary General which we believe is the only path towards a settlement,'' the American diplomat said.

Weston said ''the answer is for the parties to meet the requirements of the Secretary General.''

Asked if he thought it would be possible to find a settlement before May, he replied ''yes, because we share the assessment of the Secretary General that with the necessary political will, it is possible to complete the work necessary and put it to referendum.''

''Talks can begin as soon as possible, for this the necessary political will needs to be forthcoming from four different parties, we would hope that that would be forthcoming immediately, there is no reason that that would not be forthcoming, there is a lot of technical work that needs to be done.''

Invited to identify any one party who has shown political will, Weston said the necessary political will as the SG has described it has not been forthcoming.

Asked if Cyprus President Tassos Papadopoulos, whom he met on Wednesday, has shown this will, he refrained from commenting on his impression of his meeting.''I am not willing to characterize his position,'' he said.

On how the situation in occupied Cyprus affects the effort to begin talks, he said ''the situation should not have an effect on the primary goal, which is a solution, the situation is politically unsettled but the result of the election should be such as to encourage all Turkish Cypriot political leaders to move forward to negotiations.''

[17] Cyprus reference in European Parliament resolution

BRUSSELS 19/12/2003 (CNA/ANA)

The resolution notes with interest the outcome of Sunday's ''parliamentary elections'' in Turkish-occupied Cyprus and hopes this is indicative of support for a comprehensive settlement.

''On the Cyprus problem, Parliament urges all parties, in particular Turkey and the Turkish Cypriot leadership, to commit themselves to the UN Secretary-General's criteria to restart talks,'' the resolution said.

Kofi Annan has asked the two sides in Cyprus, Greece and Turkey, to show the necessary political will to commit themselves to the resumption of talks with a view at concluding them and putting his peace plan to simultaneous separate referenda.

The Parliament reiterates its preference for accession of a reunited Cyprus on May 1, 2004 and stressed the importance of Turkey's expression of will to find a settlement.

On Turkey, it urges Ankara ''to make further sustained efforts at

reform, regarding the exercise of fundamental freedoms, the alignment of civil-military relations with European practice and macro-economic imbalances.''The Parliament agrees that a Cyprus settlement would greatly facilitate Turkey's European aspirations for accession.

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