Athens News Agency: Daily News Bulletin in English, 05-04-21

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

CONTENTS

[01] EU Commission finds 'primary shareholder' law incompatible with EU rules; government reaction

[02] Government forced to make disorderly retreat on main shareholder issue, PASOK party leader says

[03] PM Karamanlis meets with visiting OECD sec.gen. Johnston

[04] PM's Thursday agenda

[05] U.S. State Department on Greece's role in Kosovo issue

[06] Foreign policy institute lecture focuses on a sustainable status for Kosovo

[07] President Papoulias receives former Russian PM Primakov

[08] PM Karamanlis confers with defense minister

[09] Greek deputy foreign minister to visit Cyprus on Thursday

[10] President Papoulias congratulates Pope Benedict XVI on his election

[11] PM congratulates Pope Benedict XVI on his election

[12] Patriarch welcomes election of Pope Benedict XVI; Turkish press reacts negatively

[13] Turkish warplanes violate national air space

[14] Privatization program to proceed as scheduled, FinMin

[15] Finmin sees 2005 privatization proceeds totalling 1% of GDP

[16] Development minister discusses government's energy policy at Economist conference

[17] OECD official sees brighter future for eurozone

[18] US-Europe growth gap to remain, economists say

[19] Gov't seeks consensus in social reforms

[20] SYN leader criticizes gov't on social security reform

[21] Greek exports to Russia on the rise, deputy foreign minister says

[22] PM, Merchant Marine minister discuss shipping policy

[23] Parliament passes bill to curb insider trading

[24] TIF inaugurates Greek pavilion in IBF in Brno

[25] Greek tourism making dynamic entry into international competitive environment, tourism minister says

[26] Tourism minister to attend tourist exhibition in Istanbul on Thursday

[27] Greek current accounts deficit rose 68 pct in Jan-Feb, yr/yr

[28] Greek boat and yacht market grew 14.6 pct annually in 2000-04, report

[29] Gov't presents new pricing policy for pharmaceutical products

[30] Greece among EU states to offer limited subsidies

[31] Cosmote to acquire OTE stock in Balkan mobile phone firms

[32] Stocks drop in correction

[33] Greek Treasures exhibition to open in Sydney on May 4

[34] Greeks' participation in UNICEF radiothon impressive

[35] Greek population aging in dramatic way, OECD secretary general says

[36] Justices walk out for two hours in protest over mass transfers

[37] Education minister attends Action Aid event

[38] Second slight earth tremor in region of Nea Santa on Wednesday evening

[39] Cypriot government aims at convincing UN Secretary-General to launch initiative

[40] Commission says list of crossing points extended in Cyprus

[41] Russia calls on Talat to help resumption of talks

[42] Cypriot parties: Current conditions favorable for better understanding

[43] Cyprus president congratulates newly elected Pope

[01] EU Commission finds 'primary shareholder' law incompatible with EU rules; government reaction

Government spokesman Theodoros Roussopoulos on Wednesday stressed that a letter received from the European Commission that day, which found the government's 'primary shareholder' law to be incompatible with the laws of the European Union, was not a reply to the letter sent 15 days earlier by Interior Minister Prokopis Pavlopoulos, which the government was still waiting for.

According to the spokesman, the memorandum sent by the head of the European Commission's Regional Policy Directorate-General Graham Meadows ruled out payments from EU Structural and Cohesion Funds for projects affected by the new law, creating the risk that EU subsidies might be lost.

He said the government was considering the option of postponing the date that the bill came into force if no agreement was reached before May 31, the deadline given by Meadows for informing Greek authorities responsible for EU-funded projects about the non-eligibility of spending linked to contracts affected by the bill.

The new bill was originally scheduled to come into force on June 14 this year.

The spokesman also stressed that the letter questioned the compatibility of both the new law and the law passed by the previous PASOK government, which is currently in force, while pointing out that the Commission official was mistaken in believing that the law passed in 2005 was already in force.

Roussopoulos said that the government was continuing efforts to find a "common ground" with the Commission while defending both the Greek Constitution and the Community funds that the country was entitled to.

"On no account does our strategic target change and we are not giving up our fight for transparency.

"No one should entertain any illusions that the government will lay down its arms in the fight against graft," he added, while he left open the option of amending the law or postponing its enactment, depending on the outcome of talks with the European Commission.

Roussopoulos also pointed out that the risk of a freeze of EU funds was linked to the implementation of the previous law passed by PASOK in 2002 and possible complaints filed in connection with contracts awarded or lost on the basis of this law, which was still in force. He said he was unaware if any such complaints had been lodged with the Commission.

"However, we are not prepared to lose even one euro of Community funds linked to major public works projects, whether these concern PASOK's laws or our own," he stressed.

In the letter sent to Greece's permanent representative at the European Union on Wednesday by Meadows, Greek authorities are advised that spending linked to contracts affected by the 'primary shareholder' law of 2005 is not eligible for funding from the EU Cohesion and Structural Funds.

Meadows also demands that applications for payments submitted to EU funds by Greece should include a certificate from Greek authorities that they are not linked to contracts affected by the law in question.

He asks that the Greek government send confirmation by May 31, 2005 that it has advised Greek authorities in charge of handling and administrating EU-subsidized projects of the new rules, otherwise EU funds will refuse to accept requests for payment from Greece.

The letter notes that the Commission had also found the previous law passed by PASOK in 2002 to be incompatible with European Law and that the Commission was leaving open the possibility of initiating procedures for "fiscal correction" foreseen under the Structural Fund and Cohesion Fund rules if it was informed that participants in a tender had been disqualified from bidding for state contracts on the basis of this law.

The 'primary shareholder' law of 2005 enacts an article of the Greek Constitution that seeks to prevent media involvement in the process of awarding state contracts, in a bid to promote transparency and ensure that the media fulfill their institutional role. In effect, the law forbids individuals or companies that own at least 1 percent of a media enterprise from bidding for state contracts, while the ban also extends to their spouse and close relatives.

[02] Government forced to make disorderly retreat on main shareholder issue, PASOK party leader says

Main opposition PASOK party leader George Papandreou said on Wednesday the government is being forced to make a disorderly retreat on the issue of the main shareholder law.

He called on the government to take an initiative which will allow for the issue to be handled responsibly and on an inter-party basis.

Papandreou also stressed the immediate danger of considerable funds being lost for the Greek people and placed all responsibilities for the development of the main shareholder issue on the government.

The PASOK leader also referred to the issue of the utilization of Olympic installations, expressing fear that with the way the government is handling the matter a crime is taking place against the people and their property, while a great opportunity is being lost for the country's new generation.

[03] PM Karamanlis meets with visiting OECD sec.gen. Johnston

Prime Minister Costas Karamanlis on Wednesday received visiting Organization for Economic Cooperation and Development secretary general Donald J. Johnston, and discussed the course of the Greek economy in light of the OECD annual report expected next month.

Johnston is on a three-day visit to Greece at the invitation of national economy and finance minister George Alogoskoufis, who also attended the meeting.

According to sources, the OECD chief, in addition to issues of the economy, places special emphasis also on matters of the environment, the climate, and the demographic problem.

No statements were made after the meeting.

Johnston is also scheduled to meet with main opposition PASOK leader George Papandreou, Bank of Greece Governor Nikos Garganas and Athens Mayor Dora Bakoyannis, among others.

[04] PM's Thursday agenda

Prime Minister Costas Karamanlis will be meeting with former Russian Prime Minister and President of the Russian Chamber of Commerce and Industry Eugeny Primakov on Thursday morning.

Later in the day, Karamanlis will be meeting with Deputy Finance Minister Christos Folias and former New Democracy party President Miltiades Evert, separately.

[05] U.S. State Department on Greece's role in Kosovo issue

Washington, 21/4/2005(ANA/T. Ellis)

"The United States welcomes and appreciates Greece's involvement and support in a constructive solution in Kosovo," Ereli stressed, adding that "it is an important member of Europe and has an important role to play."

Asked to comment on the non-participation of Greece in the "Contact Group", Ereli noted that the latter was created in the middle of the previous decade and has developed its own way of operation.

However, he added that the members of the "Contact Group" are in constant consultation with countries of the region such as Greece, which have the opportunity to actively contribute in developments and efforts for the creation of a free and stable Balkans, without necessarily participating as full members in the "Contact Group".

[06] Foreign policy institute lecture focuses on a sustainable status for Kosovo

The Hellenic Foundation for European and Foreign Policy (ELIAMEP) hosted a lecture at Austria's Eastern and Southeastern Europe Institute on Tuesday evening, and focused on achieving a sustainable status for Kosovo.

Professor Evangelos Kofos, ELIAMEP's Special Adviser on Balkan Affairs, presented Greece's positions on the issue.

He also presented two of his own proposals, which he recently presented during a lecture in Athens and which ELIAMEP has already adopted.

The first involves the creation of a monastic Orthodox community, similar to that of Mount Athos, which would be responsible for the safeguarding of institutions, monasteries and monastic life.

According to Kofos, the merits of this proposal is that it would protect cultural identity and tradition, while at the same time - because of its appeal to Serbs - it would provide an incentive for them to negotiate.

The second proposal concerns borrowing ideas from an older UN 'custodial system' that could be applied in determining the final status of Kosovo.

The event was organized by ELIAMEP in cooperation with the Greek embassy in Austria.

[07] President Papoulias receives former Russian PM Primakov

President of the Republic Karolos Papoulias on Wednesday met with former Russian Prime Minister Yevgeny Primakov.

Primakov, who currently chairs the Russian Chamber of Commerce and Industry, is in Athens for the ongoing Economist conference.

[08] PM Karamanlis confers with defense minister

Prime Minister Costas Karamanlis on Wednesday conferred with national defense minister Spilios Spiliotopoulos on the minister's upcoming visit to the United States, ahead of the latter's scheduled departure for Washington on Sunday.

The minister is visiting the US at the invitation of his American counterpart, US defense secretary Donald Rumsfeld, with whom he will meet next Wednesday.

No statements were made after the meeting.

[09] Greek deputy foreign minister to visit Cyprus on Thursday

Nicosia, 21/4/2005 (ANA - G. Leonidas)

Skandalakis will be received by Cyprus President Tassos Papadopoulos and the president of the Cyprus House of Representatives Demetris Christofias, while he is scheduled to have talks with Cypriot Foreign Minister George Iacovou.

Other scheduled meetings to be carried out by the Greek minister include one with the head of the Holy Synod of the Cyprus Church, Paphos Metropolitan Chrysostomos, the mayor of Nicosia Mihalakis Zabelas and expatriate bodies.

[10] President Papoulias congratulates Pope Benedict XVI on his election

President of the Republic Karolos Papoulias sent a message on Wednesday to Pope Benedict XVI congratulating him on his election:

"This day which marks the assumption of your high duties as Pontiff, I would like to express the sincere congratulations of the Greek people and myself personally, with the certainty that the international community will find in your person a champion of Christian values, a supporter of human rights and a clear and loud voice which will speak for peace and the disinherited of this world.

"Rest assured that the respect of each well-intentioned person in our country will accompany your steps in this long road which opens up before you today."

[11] PM congratulates Pope Benedict XVI on his election

Prime Minister Costas Karamanlis sent a letter to Pope Benedict XVI congratulating him on his election, Government Spokesman Theodoros Roussopoulos said on Wednesday.

Karamanlis wished the Pope a long and successful tenure full of efforts inspired by Christian ideals for the promotion of peace, social justice and human rights.

[12] Patriarch welcomes election of Pope Benedict XVI; Turkish press reacts negatively

Istanbul, 21/4/2005 (ANA - A. Kourkoulas)

Earlier, Vartholomeos said Benedict "succeeds the unforgettable Pope John Paul II during a period when initiatives by the latter for the rapprochement of the Churches (Orthodox and Roman Catholic) and dialogue are underway with hopes for their fruition.

"The fact that he hails from the German nation, which for many years endured a division and the consequences of division but is today playing a significant role in Europe's unity and, in general, around the world, provides a hope and certainty that he will be in a position to appreciate the importance of unity, or even peaceful cooperation and the avoidance of antagonisms within Christendom and in the world, both within and outside of Europe," the Patriarch said.

In a related development, most of the Turkish press on Wednesday reacted negatively to the election of Cardinal Ratzinger as the new head of the Roman Catholic Church, with most pointing to his stated opposition at Turkey's EU prospects.

In a repeatedly quoted interview published last August in the Paris daily "Le Figaro", the new pontiff detailed his opposition to Ankara's long-sought goal of admission to Europe.

In that interview, Pope Benedict XVI said Europe was a cultural not a geographical concept, with Turkey always being part of another continent often-times in opposition to Europe.

In qualifying his opposition, he referred to the Ottoman Turks' warfare with Christian Byzantium, the fall of Constantinople to the Turks, the Balkan Wars of the early 20th century and even the Ottoman siege of Vienna.

"Therefore, I believe it would be a mistake to equate the two continents; this would be a cultural loss made in the name of the economy. Turkey, which considers itself a secular state but is also a country based on the Islamic principle, can try to create a cultural continent with neighboring Arab states, and to become the head of a civilization that will have its own identity, one in harmony with the pre-eminent human values. This idea does not clash with models of friendly relations with Europe, and it can also provide the opportunity to give birth to a united force that will be against any form of fundamentalism," he said.

When asked about the interview at the time, Turkish PM Recep Tayyip Erdogan merely noted that the Vatican was a religious state and not a member of the EU.

[13] Turkish warplanes violate national air space

The Turkish air force used an increased number of armed warplanes on Wednesday as part of its continuing illegal activity in the Aegean.

According to National Defense General Staff sources, the armed Turkish warplanes were seven on Wednesday, whereas their numbers did not exceed four until Tuesday.

The sources said 34 Turkish warplanes entered the Aegean on Wednesday without submitting flight plans and in 22 cases they violated national air space in the northern, central and southern Aegean.

A flight over the islet of Sofrana, located between the islands of Karpathos and Santorini, was also recorded at an altitude of 29,000 feet.

In all cases, the Turkish warplanes were recognized and intercepted by Greek air force jets, while no mock dogfights occurred between Greek and Turkish warplanes.

[14] Privatization program to proceed as scheduled, FinMin

A total of 37 investment projects, budgeted at 115 million euros, have been submitted with the economy ministry as part of the framework of a new development law so far, Economy and Finance Minister George Alogoskoufis told an Economist conference in Athens on Wednesday.

In his speech, the Greek minister stressed that a privatization program would be implemented as scheduled along with structural reforms included in the government's economic program.

[15] Finmin sees 2005 privatization proceeds totalling 1% of GDP

Finance Minister George Alogoskoufis said on Wednesday that he anticipated revenue of 1,600 million euros in 2005 from the government's fresh wave of privatization, representing 1.0% of gross domestic product.

In the pipeline were a reduction of the state's holding in Athens-quoted Football Pools Organization to around 34%; and part-flotations for the Post Office Savings Bank and Athens international airport, Alogoskoufis told an Athens conference of The Economist business magazine.

In addition, the government expected a flood of investment spurred by a new development law. Thirty new investment plans worth 80 million euros were currently being evaluated; and over the previous 24 hours another seven investment proposals had been submitted totalling 35 million euros, the minister added.

[16] Development minister discusses government's energy policy at Economist conference

Development Minister Dimitris Sioufas focused on the government's energy policy during his speech at the Economist conference, held in Athens on Wednesday.

Sioufas referred to the agreement Greece, Russia and Bulgaria recently signed regarding the Burgas-Alexandroupolis oil pipeline, but also to the creation of a common electrical energy and natural gas market in the broader region of Southeast Europe.

Furthermore, Sioufas also spoke about the natural gas pipelines (Greece-Turkey, Greece-Italy) that will serve as "the basis for the achievement of an ambitious EU goal - the creation of a natural gas ring which will connect the West with the East."

He also made reference to the plan for a natural gas pipeline that will run through Greece, Albania, Croatia and Austria, which the European Union has approved.

Sioufas explained the benefits that a unified energy market will bring, including a more attractive environment for investments in the energy sector, the creation of jobs, and competition which will result in better prices for consumers. He also noted that a common market would mean the end of isolation for Southeast European countries and reinforcement of stability and economic growth in the region.

In closing, the minister emphasized that one of the government's top priorities is to liberalize the electrical energy and natural gas markets and to incorporate relevant EU directives into national legislation.

According to Sioufas, both markets will be liberalized by the end of May.

[17] OECD official sees brighter future for eurozone

The secretary general of the Organization for Economic Cooperation and Development, Donald Johnston, said on Wednesday that high hopes should be held for Europe's future despite a "below-expectations" phase being experienced in the eurozone.

"After a downward trend for growth in 2004, it should gradually recover in 2005," Johnston told an Athens conference of The Economist magazine.

He is paying a three-day visit to Greece, including talks with the prime minister and finance minister.

[18] US-Europe growth gap to remain, economists say

European economy and its main economic figures will grow significantly by 2020, although an existing gap with the US will be maintained with Europe unable to reach US's per capita income, Laza Kekic, Economist Intelligence Unit's director for Central and Southeatern Europe told an Economist conference held in Athens.

Kekic stressed that Lisbon targets would not be achieved and noted it was unrealistic for the European Union to reach these goals in the next 15 years. He noted a geographic expansion of the EU was significant in its economic growth although he stressed that the 10 new member-states' high growth rates might have been overestimated.

Mr Azad Rana, deputy general director at the World Trade Organization, said the organization needed to focus on the farm sector as more job needed to be done, despite government pledges to end farm export subsidies. Rana said governments should agree on which products should be characterized as vulnerable or sensitive and stressed that lower subsidies could add around 3.0 percent to world growth rates annually.

ND's Eurodeputy Antonis Samaras said the European Central Bank's policy was responsible for the fact that European economic lagged behind the US. "ECB adopted wrong priorities from the beginning as it focused on establishing euro as an international currency to replace the US dollar, ignoring measures to protect and improve European economic competitiveness," Samaras said. He also criticized ECB's anti-inflationary policy.

[19] Gov't seeks consensus in social reforms

Greek Labor Minister Panos Panagiotopoulos on Wednesday said recent reports over a government decision to abolish existing working hours in the country were exaggerated and unrealistic.

Speaking to reporters, after a meeting with Prime Minister Costas Karamanlis, Panagiotopoulos said the government did not intend to change the percentage in lay-offs, nor abolish collective agreements, violate labor rights or promote unsecured labor in the country.

The Greek minister said recent press reports were a misinformation and stressed the Greek society was ready for reforms.

Panagiotopoulos distanced himself from comments made by the head of Greek Industries Union over reforms in labor relations and underlined that the government was in the middle of a dialogue between employers and workers as it was seeking to promote reforms based on consensus. He noted that a second phase of a dialogue would begin in the next few days.

[20] SYN leader criticizes gov't on social security reform

Coalition of the Left, Movements and Ecology (SYN) party President Alekos Alavanos on Wednesday criticized the government regarding its handling of the social security reform issue.

"Governments that want to take measures that are positive for workers, announce them. The way in which the government is looking to engage in dialogue means that it's looking for accomplices. We cannot play this role and we will oppose any measures that diminish workers' rights, whether they concern social security reform or labor conditions," Alavanos said in a statement.

[21] Greek exports to Russia on the rise, deputy foreign minister says

The balance of trade deficit between Greece and Russia was tending to improve, with Greek exports and investments in Russia on the rise, Deputy Foreign Minister Evripides Stylianides told a Greek-Russian Business Forum taking place in Athens on Wednesday and Thursday.

He also stressed the recently signed political memorandum for the construction of the Burgas-Alexandroupolis oil pipeline, saying this sealed Greece's successful presidency of the Black Sea Economic Cooperation (BSEC) organization and established Greece and Russia as strategic partners.

Stylianides said that 45 Greek businesses were currently operating in Russia, as well as 130 mixed Greek-Russian concerns. He said Athens was making efforts to resolve the problem of issuing visas for both tourists and business travelers within the framework of the Schengen Treaty.

He also noted that Greece was organizing a mixed ministerial meeting and business delegation to Moscow as a way of promoting bilateral ties between Greece and Russia.

The forum was organized by the Athens Chamber of Trade and Industry.

[22] PM, Merchant Marine minister discuss shipping policy

The government is adhering to its pre-election pledges and will ensure that all Greek islands are linked with Piraeus throughout the year, Merchant Marine Minister Manolis Kefaloyiannis said on Wednesday.

Speaking to reporters, after a meeting with Prime Minister Costas Karamanlis, Kefaloyiannis said shipping fares would not rise this year, except from raises related with oil price fluctuations. The Greek minister briefed the PM over his ministry policies on developing the country's ports, and supporting the Greek sea cruise industry.

[23] Parliament passes bill to curb insider trading

Parliament on Wednesday passed a government bill to curb insider trading and share manipulation in the Greek market.

Finance Minister George Alogoskoufis told the house that the new law aimed to protect investors using the market legitimately and crack down on speculative game-players, who had often turned the market into what he called a casino.

"And we're not stopping here because the stock exchange needs more measures, ones that will strengthen the independence of the capital market commission," Alogoskoufis added.

[24] TIF inaugurates Greek pavilion in IBF in Brno

Thessaloniki International Fair SA on Tuesday inaugurated its first official participation in a trade fair organized by a central European state, marking its expansion in the region.

TIF inaugurated a pavilion covering an area of 200 square meters at the International Construction and Building Materials Fair in Brno, the Czech Republic.

The pavilion exhibits products and services by 13 enterprises based in Thessaloniki.

TIF plans to participate in Polagra-Food, an international trade fair to be held in Poland in September.

The Greek participation in IBF also envisages the organizing of a round table to brief exhibitors over the Czech market, while TIF's management will meet with BVV, the state agency for organizing trade fairs in the Czech Republic, on Thursday to discuss ways of further strengthening cooperation.

[25] Greek tourism making dynamic entry into international competitive environment, tourism minister says

Tourism Development Minister Dimitris Avramopoulos, speaking at the Economist conference on Wednesday, said Greek tourism is making a dynamic and sure-footed entry into the international competitive environment.

Referring to his ministry's activities, Avramopoulos said tourist legislation is being upgraded and modernized, tourist training is being boosted and enhanced, tourist infrastructures are being modernized and the assets of Greek tourism are being utilized in cooperation with the private sector.

The minister reiterated that Greece is on a stabilization course which heralds the recovery of tourist movement, despite ominous evaluations and predictions for the tourist scene in the European south.

He added that Greece is emerging as a safe destination and that initial feedback is positive and optimistic.

Avramopoulos further said that his ministry's activities include the strengthening of domestic tourist movement with targeted advertising campaigns, focusing on the promotion of a 'tourism' mentality among citizens and professionals.

[26] Tourism minister to attend tourist exhibition in Istanbul on Thursday

Tourism Development Minister Dimitris Avramopoulos will leave for Istanbul, Turkey, on Thursday to attend, following an official invitation, the inauguration of the international tourist exhibition MTE, organized by TURSAB (the Union of Turkish Tourist Businesses).

Avramopoulos will be holding talks with the country's Culture and Tourism Minister Attila Koc during his stay in Turkey, as well as with counterparts of his from other countries.

[27] Greek current accounts deficit rose 68 pct in Jan-Feb, yr/yr

Greece's current accounts deficit widened by 68 percent in the first two months of 2005, reflecting more purchases of cargo vessels by Greek shipowners, the Bank of Greece said on Wednesday.

The central bank, in its monthly report, said higher oil prices resulted to a 32.3-percent increase in the country's fuel trade deficit, while EU fund inflows were stable compared with the same period last year.

The current accounts deficit jumped to 2.009 billion euros in the January-February period, up 582 million euros, or 15.3 percent, compared with the same period in 2004. The central bank said the deficit, excluding the cost of new vessels and fuel, actually shrank by 105 million euros. The services surplus grew by 154 million euros, reflecting higher shipping foreign exchange inflows (366 mln euros).

Tourist exchange inflows rose 19.6 percent in the Jan-Feb period compared with the same period in 2004, although foreign exchange spent by Greek tourists abroad jumped 32.4 percent over the same period.

The transfers' surplus fell by 324 mln euros, while EU funds inflows were unchanged at around 1.986 billion euros.

The financial transactions sector recorded outflows of 184 million euros due to Greek investments abroad (Alpha Bank's acquisition of Jubanka in Serbia and National Bank's participation in a share capital increase plan by Romaneasca in Romania).

Foreign direct investments to Greece totalled 100 million euros (by non-residents), while direct investments abroad totalled 208 million euros. Portfolio investments reported a net inflow of 1.117 billion euros, while the other investments sector reported a net inflow of 416 million euros.

[28] Greek boat and yacht market grew 14.6 pct annually in 2000-04, report

The Greek boat and yacht market grew by an average annual rate of 14.6 percent in the five-year period from 2000 to 2004, a report by ICAP said on Wednesday.

The report said that demand was largely covered by domestic products, with imported yachts accounting for 38 percent of total in 2004, while exports of Greek-made yachts accounted for 24 percent of total production in the same year.

Polyester-made yachts accounted for 55.7 percent of the market, followed by inflated boats (38.5 percent) and ski-jets and sail boats (5.8 percent).

ICAP expects polyester-made boats to grow by 10 percent in the 2005-2006 period, inflated boats and ski-jets to grow by 5.0 percent annually, while sail boats are expected to remain flat over the two-year period. The report said that consumers were gradually turning towards polyester-made boats (up to seven meters long) as their cost was significantly different compared with the cost of inflated boats of similar size.

The Greek market offered a relatively large number of manufacturers and importers of yachts and boats and noted that high competition contain profit margins in the market. The report also stressed a government decision to abolish tax factors for boats up to 10 meters long (without crew) was a positive step for the industry.

[29] Gov't presents new pricing policy for pharmaceutical products

Pharmaceutical prices will decrease by 5-7 percent after the introduction of a new price-setting policy by authorities, Development Minister Dimitris Sioufas and Deputy Minister Yiannis Papathanasiou said on Wednesday.

Speaking to reporters as they presented the government's new pricing policy for pharmaceuticals, the two ministers said the new policy would be implemented from June and that prices would be set on the average of the three cheapest countries in the EU-25, while domestically produced prototype medicines would be priced equally with imported products.

The two ministers said pharmaceutical products' prices, losing their patent, would be reduced by 20 percent, while generic medicine prices would be set at 80 percent of the original's initial price. Pharmaceutical prices used for hospitals will have a 13-percent discount from wholesale prices. The two ministers also announced the creation of a research centre with the task of analyzing data from the pharmaceutical industry.

Sioufas said a dialogue with pharmaceutical companies would not include negotiations over pricing policy.

[30] Greece among EU states to offer limited subsidies

Brussels, 21/4/2005 (ANA/V Demiris)

In 2003, Greece awarded state subsidies of 0.6 billion euros, versus a high of 16.4 billion euros for Germany and low of 0.1 billion euros for Luxembourg, the EU's executive Commission said in a statement.

In that year, the EU-15 awarded a total of 52.8 billion euros in state subsidies, representing 0.57% of the bloc's gross domestic product, the statement said.

The Commission welcomed the fact that state subsidies in the EU were flat against 2002, in a straight numerical comparison.

[31] Cosmote to acquire OTE stock in Balkan mobile phone firms

Management of Athens-quoted Hellenic Telecommunications Organization and Cosmote on Wednesday approved the acquisition by Cosmote of stock in two other OTE subsidiaries, mobile phone operators Globul of Bulgaria and Cosmofon of the Former Yugoslav Republic of Macedonia.

The 490-million-euro cash purchase includes 400 million for the acquisition of stock in Globul and 90 million for Cosmofon, OTE said in a statement.

[32] Stocks drop in correction

Stocks finished lower in a correction to the market, traders said.

The Athens general share index closed at 2,896.40 points, marking a decrease of 0.30%. Turnover was 144.1 million euros.

The FTSE/ASE-20 index for high capitalization shares ended 0.47% down; the FTSE/ASE-40 for medium cap stocks closed 0.50% lower; and the FTSE/ASE-80 for small cap shares finished 0.42% down.

Of stocks traded, declines led advances at 169 to 110 with 57 remaining unchanged.

Equity Index Futures: