Athens News Agency: Daily News Bulletin in English, 05-12-19

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

CONTENTS

[01] Karamanlis pleased with EU deal over Union's 2007-13 budget

[02] Parliament debate on 2006 draft budget begins

[03] Papoulias hosts reception for media; top political leadership in attendance

[04] Papandreou: Gov't audit of state finances responsible for most current economic problems

[05] Papandreou attends PASOK event for immigrants

[06] Albanian PM Berisha cites intent to visit Greece in near future

[07] Tatoulis meets in NYC with Archbishop Demetrios

[08] Expatriate groups in the Netherlands express displeasure to KLM over FYROM name

[09] Alogoskoufis says deficit will be cut by controlling spending

[10] Authorities confiscate 3 kilos of heroin in Thessaloniki bust

[11] Illegal immigrant arrests

[12] President Papadopoulos: Annan plan gave Turkish side everything

[13] President Papadopoulos says EU budget agreement improved for Cyprus

[01] Karamanlis pleased with EU deal over Union's 2007-13 budget

BRUSSELS, 19/12/05 (ANA - A. Panagopoulos)

"Many more parties were challenging for a slice of a smaller pie," was amongst Karamanlis' first statements to reporters after the EU Summit. He also referred to the expectedly tough negotiations that preceded the agreement over the 25-member bloc's 2007-2013 budget, saying that Athens worked hard to ensure that nary a euro was lost for the east Mediterranean country.

Karamanlis cited a figure of 20.1 billion euros in cohesion support for the country during the period.

Regarding the Common Agriculture Policy (CAP) -- an issue of major importance to Athens because of the farm subsidies funnelled into the country's provinces -- the Greek prime minister reiterated that no changes will be made before 2013.

"... We had stated from the beginning that we would not accept a revision of CAP before 2013, and that we would insist on what had been agreed to during the Brussels summit of 2002. We persisted on this point. Put simply, CAP will remain as is until 2013. Discussions and preparations for what follows will take place, but only up to that point," the premier said.

Turning to Greece, Karamanlis said increased absorption of EU funds and continued development are the keys to the future, saying high growth rates in the country -- amongst the highest in the 'euro zone' -- have disproved Cassandras that predicted a slackening of GDP growth after the 2004 Olympics.

Additionally, he said measures initially envisioned exclusively for new EU members in a previous June proposal submitted by the then EU presidency -- an extra year added to a period for absorption of EU funds, 85-percent funding of programmes by the Union, as well as returns of VAT for co-financed projects -- will significantly benefit Greece.

"It was a long night, we're very satisfied though from the result, both for what we achieved for our country, of course, and because today we achieved a very significant EU agreement," the prime minister said.

Asked if Athens will use its veto power in case a CAP revision is attempted before 2013, Karamanlis said no agreement would have come about without a compromise, adding that many countries do not agree with a revision of CAP, including founding members of the European Union.

Finally, asked to respond to criticism by main opposition PASOK leader George Papandreou that his government's targets for the summit were very modest, Karamanlis reminded that he doesn't comment on such political developments, and "continuously unfortunate statements," while overseas.

Reactions

In a later reaction, top PASOK cadre Christos Papoutsis said the agreement reached at the summit was "below expectations" and in complete conflict with the expectations of European citizens. He said uncertainty within the Union derives from the difficulties faced by the European constitution and the future of expansion beyond 27 members.

Papoutsis, a former European Commissioner, also charged that the Greek government never listed its goals for the summit or what it hoped to achieve. "The only thing we heard is that they wanted an agreement, any agreement," he said, while claiming that the Greek delegation and Karamanlis opted for "behind-the-scenes" negotiations. Finally, Papoutsis charged that Greece will lose funds for agriculture development via the agreement.

KKE: The Communist Party of Greece (KKE) said the EU funds earmarked for Greece are aimed at supporting "big capital" and not the needs of workers.

In repeating its long-time opposition to the European Union as a whole, a communist party press release said the "true nature of the EU and the aggressive strategy of attacking the rights of peoples, as well as the haggling and bargaining exclusively relate to which plutocracy will get the most (benefits)."

Synaspismos

On its part, the Coalition of the Left (KKE) said a reduction of the Community budget below a figure recommended by the Commission, the previous EU presidency and "below the true requirements" of the Union, bodes ill for a united, social and democratic Europe.

Gov't spokesman

In response to Papoutsis' comments, government spokesman Theodoros Roussopoulos called the remarks a "glorification of unreliability", while he repeated the former's statement in June, namely, "...the prime minister can now serve his communications needs, however, in the next phase when he's called on to negotiate, it is obvious that negotiations will be much tougher, and then we'll see how he'll (Karamanlis) justify the lower amount (of EU funding)."

In continuing his caustic reaction to the one-time EU Commissioner, Roussopoulos, who is also minister of state, reminded that the draft EU budget ironed out on Friday was lower than the one foreseen in June; nevertheless, the cohesion funds envisioned for Greece (20.1 billion euros) remained as is.

"Despite this, Mr. Papoutsis not only recognised that in June he made a mistake, or he was just danger mongering, but he's doing what PASOK always does: distorting realty," Roussopoulos charged.

[02] Parliament debate on 2006 draft budget begins

ATHENS, 19/12/05 (ANA)

The fallout, nevertheless, from Friday's late-night deal on the 2007-2013 budget at a European Union summit mostly dominated initial addresses from Parliament's podium, with Economy Minister George Alogoskoufis noting that some quarters were "saddened" when the government achieved its targets, especially in terms of slashing the budget deficit, continuing GDP growth and lessening unemployment.

He also returned volleys at PASOK for criticism by some of its cadres over the 20.1-billion-euro figure allocated to Greece for cohesion support, the same figure initially cited in June.

PASOK rapporteur Andreas Makrypidis, conversely, down-played the government's presence at the EU summit, saying Greece would have received the same amount "anyway", while saying today the figure is "presented by the government as a major accomplishment".

[03] Papoulias hosts reception for media; top political leadership in attendance

ATHENS, 19/12/05 (ANA)

In brief statements to reporters, Papoulias appeared particularly pleased with results of the previous day's European Summit in Brussels, saying a last-minute compromise deal over the Union's 2007-2013 budget was a "kiss of life" for Europe.

On their part, main opposition PASOK leader George Papandreou and former Prime Minister Constantine Mitsotakis, the honorary president of ruling New Democracy, expressed diametrically opposing views over the summit's outcome.

Papandreou, a former foreign minister, said Athens did not have a plan heading into the summit, whereas the Greek delegation arrived and left with the same offer (20.1 billion euros) as a previous June proposal tabled by the British EU presidency.

Conversely, Mitsotakis said he did not expect such a positive conclusion, adding that the Greek side achieved more than it had hoped.

"This is undoubtedly a success, but I am saddened by the pettiness of (political) opponents," the former premier said.

Practically all of the country's political leaders, including Prime Minister Costas Karamanlis, attended the event at the presidential mansion.

[04] Papandreou: Gov't audit of state finances responsible for most current economic problems

ATHENS, 19/12/05 (ANA)

In published comments coinciding with the commencement of Parliament debate on the draft 2006 state budget, Papandreou charged that the latter was misleading, while also saying that envisioned increases in revenues will come from wage-earners and via indirect taxes.

"We believe in a correct redistribution of the developmental dividend in favor of the weaker classes, and certainly not for the purchase of more F-16s," the former foreign minister said in citing the government's recent decision to buy up to 40 new US-made warplanes.

He added that a PASOK government would have tabled a completely different draft budget because it would not have proceeded with what he called a "false audit" undertaken by the Karamanlis government late last year -- a pre-election commitment by ruling New Democracy party that led to significantly higher deficit figures being reported than the ones previously announced by successive PASOK governments.

The former foreign minister in successive Simitis governments directly blamed the audit as the root of many of the ills he said now plague the country's economic condition, bringing the country "10 years into the past", as he said.

Papandreou's statement over the audit echoes arguments made in late December 2004 by former premier Costas Simitis, in a letter to the "Financial Times", where the latter said the Karamanlis government had "bent" previously accepted rules in its audit of government accounts in order to produce the higher deficit figures.

Simitis' arguments were countered in turn by Eurostat director general G�nter Hanreich a week later. Hanreich denied that the upward revision of the Greek deficit was the result of a retroactive change in accounting methods, saying it was chiefly the result of the Greek government systematically underestimating expenditures.

In other matters, Papandreou dismissed the government's package of reforms for various state-run utilities and enterprises, saying the initiative was merely an attack on social rights and, in fact, an attack against "democracy and the political system".

Additionally, he disputed the notion that the government's apparent slide in a series of recent opinion poll is accompanied by PASOK's failure to increase its own strength at ND's expense.

He repeated his statement of not requesting early elections, although he noted that the "sooner the electorate decides, the better." Along those lines, when asked about PASOK's programme, he said "it is essentially ready, although we'll unveil it before the elections".

Asked about a recent mini furor following his statement earlier in the month on the need for renewal in PASOK, Papandreou said he won't guarantee that all current PASOK deputies will be candidates in the next election, although he said the party's charter will be followed religiously in terms of selecting candidates.

Moreover, he added that individuals that "cannot or will not change attitude, regardless of age, will be swept away by history".

Finally, Papandreou declined to comment on his succession of Costas Simitis at PASOK's helm just prior to the March 2004 elections, merely noting that the two-term premier's contribution "was and will be the unity and rejuvenation of the party".

[05] Papandreou attends PASOK event for immigrants

ATHENS, 19/12/05 (ANA)

"I want to say how much wealth and love our country has from the immigrants that arrived," he said, adding that PASOK is the first major Greek party to proposal the full participation of immigrants in all of its political activities and workings.

He again reiterated PASOK's proposal that legal immigrants in the country be granted the right to vote in municipal elections.

[06] Albanian PM Berisha cites intent to visit Greece in near future

TIRANA, 19/12/05 (ANA - I. Patso)

The veteran politician, who recently returned to the prime minister's office, said an agenda of talks must first be agreed to.

"Our relations with Greece are excellent, and I can assure you that I have a very good relationship with Prime Minister Costas Karamanlis, and in general, with the Greek government," Berisha said.

[07] Tatoulis meets in NYC with Archbishop Demetrios

NEW YORK, 19/12/05 (ANA)

[08] Expatriate groups in the Netherlands express displeasure to KLM over FYROM name

HAGUE, 19/12/05 (ANA)

The groups also requested that the land-locked country north of Greece be properly identified in future editions of KLM's "Holland Herald".

[09] Alogoskoufis says deficit will be cut by controlling spending

ATHENS, 19/12/05 (ANA)

Alogoskoufis, the primary architect of the government's economic policy and budget, noted that overspending at various other ministries will not be acceptable, while adding, however, that the government's central core is operating well.

He added that the government retains a lead over the main opposition PASOK party even though the former has entered its most difficult phase in its four-year mandate.

Moreover, Alogoskoufis said a recently passed bill on reform Greece's often sluggish and loss-making state-run utilities and enterprises will "absolutely be implemented".

He added that necessary reforms in the country should not be limited only to the economy, but should extend to the health, education and social state sectors.

Finally, Alogoskoufis said the closely watched target of reducing the budget deficit will be achieved via a tight grip on public spending.

The interview was published by the Sunday edition of "Eleftheros Typos".

[10] Authorities confiscate 3 kilos of heroin in Thessaloniki bust

TESSALLONIKI, 19/12/05 (ANA)

The suspect's name was not announced.

[11] Illegal immigrant arrests

LESBOS, 19/12/05 (ANA)

No information was given on the nationality of the illegals.

[12] President Papadopoulos: Annan plan gave Turkish side everything

NICOSIA, 19/12/05 (CNA/ANA)

''As we have stated before, the approval of the Annan plan by the Turkish side was neither an accomplishment nor a sacrifice, since the plan granted the Turkish side everything,'' the President said, commenting on statements by Turkish Minister of Foreign Affairs Abdullah Gul that the Turkish side has made compromises regarding the Cyprus problem, whereas the Greek Cypriot side was ''intransigent.''

President Papadopoulos' statements were made during the Christmas Charity Bazaar organised by the Cyprus Red Cross in Nicosia on Sunday.

Accompanied by first lady and President of the Cyprus Red Cross Fotini Papadopoulou, the President visited the Charity Bazaar and exchanged Christmas and New Year wishes with the people.

The Bazaar was opened by Nicosia Mayor Michalakis Zampelas, who expressed the wish that next year's Bazaar would take place in a reunited Cyprus.

The President of the Cyprus Red Cross expressed her deepest gratitude to all those who helped organise the Bazaar and said that this year's earnings would be given to the Youth Department of the Cyprus Red Cross.

A children's choir sang Christmas songs for the president and his entourage, who later on visited all Red Cross pavilions in Eleftheria (Freedom) Square in Nicosia.

[13] President Papadopoulos says EU budget agreement improved for Cyprus

BRUSSELS, 19/12/05 (CNA/ANA)

Cypriot President Tassos Papadopoulos said that the agreement clinched includes ''clearly improved provisions for Cyprus in relation to the initial proposals of the European Commission.''

Speaking to the press at the end of the two-day summit, which ran into the early hours of Saturday, he said that these provisions maintain important benefits achieved during the Luxembourg presidency.

The total package of aid in the framework of the cohesion policy (structural funds and cohesion fund) will reach 580 million euro for the period 2007-2013.

''In other words, there was an improvement in the region of 340 million euro in relation to previous proposals by the Commission which restricted the package for Cyprus to 230 million euro,'' the president pointed out.

He explained that this translates into an increase in the range of per capita annual contribution from 47 euro to 110 euro.

Replying to questions, he said that there were other provisions in the agreed text on the financial perspective which are helpful for Cyprus.

On what Cyprus has achieved, he said the fundamental objective Nicosia had set out was to see to it that there is no reduction in the significant improvement allocated to Cyprus by the previous EU presidency, Luxembourg.

He also said, responding to other questions, that Cyprus remains ''a small contributor, not an important one, and the difference between our contribution and the revenue we shall get is about 36 million for seven years.''

The final comprehensive proposal from the British presidency on the financial perspective for 2007-2013, agreed here this morning, provides for 862,363 million in appropriations for commitments as the maximum total figure for expenditure for EU 27 (current 25 members plus Romania and Bulgaria).

Paragraph 47 of part 1 of the proposal, dealing with expenditure, recognises that on the basis of revised figures for the period 1997-1999 Cyprus should have been eligible for Objective 1 in 2004-2006.

''Cyprus will benefit in 2007-2013 from the transitional arrangements applicable to the regions defined in paragraph 38 (b), its starting point in 2007 being established in accordance with paragraph 45,'' it adds.

Paragraph 45 stipulates that the starting point in 2007 for those regions which were not eligible for Objective 1 status in the 2000-2006 period or whose eligibility started in 2004, will be 90% of their theoretical 2006 per capita aid intensity level calculated on the basis of the 1999 Berlin allocation method with their regional per capital GDP level being assimilated to 75% of the EU 15 average.

On the review clause, the final proposal says that the Council agrees that the EU should carry out a comprehensive reassessment of the financial framework, covering both revenue and expenditure, to sustain modernisation and to enhance it, on an ongoing basis.

The Council invites the Commission to undertake a full, wide ranging review covering all aspects of EU spending, including CAP, and of resources, including the UK rebate to report in 2008/9.

''On the basis of such a review, the European Council can take decisions on all the subjects covered by the review. The review will also be taken into account in the preparatory work on the following Financial Perspective,'' it says.

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