PASOK's rapporteur was Miltiades Papaioannou who spoke of the "greatest scandal" after the fall of the junta in 1974 and claimed that "the (New Democracy) government attempted to cover-up the issue."

A corrresponding proposal for the setting up of an Investigative Committee had also been tabled by the Communist Party of Greece (KKE) which was rejected due to the insufficient number of deputies' signatures which accompanied it.

Dodecanese deputy and president of Parliament's Institutions and Transparency Committee An. Karamarios said "let us leave justice to conduct its work and for those responsible in the phone-tapping issue to be found." He proposed to Parliament to reject the joint PASOK-Synaspismos proposal for the setting up of an investigative committee.

"All the means and potential of our committee to draw conclusions which were made public have been exhausted and their are no other margins for further probing by Parliament," Karamarios said.

KKE rapporteur Liana Kaneli said that her party will vote in favor of the joint PASOK-Synaspismos proposal because "the phone-tapping issue is a major national issue and the national issues must not close."

The ruling New Democracy (ND) party's Parliamentary Group Secretary Apostolos Stavrou said that PASOK, "instead of the road of responsibility, chose the road of complete irresponsibility."

Having said that that "we were victims of this distressful story," he criticized the main opposition party of attempting "a policy of deceiving the citizens with an apparent industry of lies and distortions of the real cases and facts."

[13] Alavanos lashes out at the government

Alavanos stressed that the stand-off is between SYN and the government and the burning issue is whether universities should be public as opposed to private. He added that his party�s weapons are ideas, values and peaceful mobilizations whereas the government�s weapon is provocation, stressing that SYN will be the winner in this face-off.

[14] Synaspismos also opposes return of the European Constitution

The decision by the Party of the European Left, which was made public on Monday, stressed that "the crisis of European unification is due to the neo-liberal policies and it opposes the return of the Euro-Constitution."

[15] Ecumenical Patriarch visits Council of Europe

Ecumenical Patriarch Bartholomew I visited Strasbourg on Monday at the invitation of Council of Europe Parliamentary Assembly (PACE) President Rene van der Linden and addressed the PACE.

Presenting Bartholomew, van der Linden underlined his efforts for the reconciliation of the Greek Orthodox and Catholic churches and for the protection of the environment, for which he had earned international acclaim, as well as his efforts to initiate inter-faith dialogue with the participation of Moslems and Jews and promote religious tolerance.

Among others, the PACE president also called on the Patriarch to contribute to international efforts for a viable solution to the Cyprus problem.

During his address to the assembly, Patriarch Bartholomew called for dialogue in solving intercultural and interreligious conflicts, "especially in times such as ours when our planet is facing many warfronts all over the world." He stressed that the Ecumenical Patriarchate has been in "constant dialogue" with the Muslim world. "The necessity and the usefulness of interreligious dialogue has become a property of humanity", he added, while rejecting "analysts of the future of humanity who consider a bloody clash of religions and of religious populations as inevitable".

At another point, Bartholomew noted that the Ecumenical Patriarchate and the surrounding Greek-Orthodox minority in Turkey feel that they still do not enjoy full rights, pointing out that the Turkish state refused to recognize a legal status for the Patriarchate, prohibited the operation of the Theological School of Halki and caused problems in property issues.

Noting, however, that the effort for EU accession had brought about internal reforms and some remarkable steps, the Patriarch said that Fanar had always supported Turkey's European perspective in anticipation that the remaining steps toward attaining the standards of the European Union would be made.

These were also issues brought up by Pope Benedict XVI when he received the credentials of the Turkish ambassador to the Vatican, recently.

According to political analysts, the Patriarch's references to this issue at the CoE gain added importance in the light of a recent ruling by the European Court of Human Rights concerning the property of minority institutions in Turkey.

During his visit, the Patriarch also met the CoE Commissioner for Human Rights Thomas Hammarberg and Turkey's Permanent Representative to the CoE Ambassador Daryal Batibay, while he is scheduled to meet the head of the Turkish mission to the CoE later the same day.

[16] Post of Alternate Political Solidarity Secretary General enacted

It concerns an announcement and commitment by Prime Minister Costas Karamanlis that had been undertaken from the podium of the 71st Thessaloniki International Fair (TIF), following a proposal made by Minister of Macedonia and Thrace George Kalantzis.

[17] Bar Association presidents oppose use of cameras in public places

As stated in the announcement by the presidents' plenum, a lengthy and in good faith dialogue was held with Papaligouras and the problems which daily concern justice was discussed.

At the same time, the plenum dealt with the issue of the use of cameras in public places. In its announcemenet, it said that the installation and operation of cameras should be allowed only for traffic purposes and without technical processing.

The plenum also viewed that "the constant shrinking of human rights, on grounds of security reasons, leads to the weakening not only of the legal, but also of human culture, transforming citizens from active, as they should be, to persons without will and personality."

[18] Thessaloniki mayor refers to FYROM 'name issue' during Melbourne visit

Thessaloniki Mayor Vassilis Papageorgopoulos over the weekend called on local philhellenes and the large expatriate community to back Greece's standing positions over the unresolved "name issue" between Athens and the Former Yugoslav Republic of Macedonia (FYROM) -- the only outstanding disagreement still preventing a full normalization of otherwise excellent ties.

The mayor of Thessaloniki, the largest and most historic metropolis of the entire geographical department of Macedonia, outlined Athens' positions to a local ethnic Greek newspaper, roughly a month before his counterpart, Melbourne Lord Mayor John So, visits the northern Greece port city.

"We're asking the residents of Melbourne to visit Thessaloniki. The monuments and treasures of Vergina, Pella and Aiges will demonstrate beyond any doubt as to who has the exclusive right to use the sacred name of Macedonia," the Thessaloniki mayor said in listing off the three best-known archaeological sites associated with the ancient kingdom of Macedonia, which corresponds approximately to the modern-day province of Macedonia in northern Greece.

The latest irritation in the ongoing "name issue" came earlier this month when FYROM officials decided to change the Slavic place-name for Skopje's airport to "Alexander the Great", further irking Athens and public sentiment in its southern neighbor over use of the name "Macedonia".

[19] Greece, Georgia sign new consular agreement

Chumburidze reiterated his government's invitation towards Kassimis to visit Georgia, while Kassimis referred to efforts at accelerating procedures to sign a joint law enforcement agreement. He also referred to security problems faced ethnic Greeks in the Tsalka district.

[20] Armenian Community members stage protest outside Turkish embassy

The march was organized in light of the assassination of the Armenian "AGOS" newspaper's publisher, Hrad Dink, outside the newspaper's offices in Istanbul last Friday.

The demonstrators stressed in a memorandum that "the genocide of the Armenians is continuing even today" and called for "international support to oblige Turkey to stop the state policy of terrorism and racism."

[21] Week in solidarity with Palestinian people begins in Athens

The events were due to begin at the Athens Polytechnic on Monday evening with an open debate on developments in the Palestinian issue.

They will culminate with a protest march to the U.S. and Israeli embassies on Saturday. The march will start at noon from Eleftherias Park in central Athens.

The Solidarity Week is organised by the Initiative Committee which was set up just before the end of 2006 with the participation of political and social organisations and public movements.

Financial News

[22] Gov't clarification on scrapping key property tax

On Saturday, Alogoskoufis told a conference of the Panhellenic Federation of Property Owners the levy would be replaced by a small real estate tax, which would also replace other tariffs that drive up the cost of construction; and the move would fall under the third phase of the government's taxation overhaul.

In Monday's statement, the ministry said: "Mr Alogoskoufis said that in the third phase of taxation reform various taxes that are levied on real estate will be replaced by a single low tax. In this way, a simplification of the system will be achieved as well as relief for property owners.

[23] Property tax abolition another 'gift' to society's wealthy - PASOK

"The owners of smaller properties of all types will be called on to pay additional taxes, while [Alogoskoufis] is promising 'gifts' for major real-estate owners, those who have and possess," said Papandreou, who is in charge of economic affairs on PASOK's Parliamentary Council.

"The farmer's field, the worker's first home will be dealt with in the same way as large luxury residences and country villas. This is one more example of what the government means by the 'just society' that it has recently started referring to," she added.

[24] Coalition party criticizes abolition of Large Real Estate Tax

"Finance Minister Mr. George Alogoskoufis, instead of proceeding with the stricter implementation of the Large Real Estate Tax so as to deal a blow at the ongoing orgy with the offshore companies in which, for reasons of tax evasion and not only, the owners of large real estate have registered their property, announced the complete abolition of this tax. This announcement constitutes a big gift by the government to the richer people of this country," he said.

[25] Four out of 10 firms breach tax rules

The most offending sectors were tobacco product firms, automobile repair and maintenance companies, places of entertainment, and medical services providers, including doctors, the ministry said in a statement.

Conducted by the Special Inspection Service were 60,522 checks on enterprises and self-employed. Breaking the law were 25,840 firms, representing 42.7% of the total.

[26] Gov't: No hikes in mass transit fares

He added that the same decision stands for public transports in Thessaloniki.

Additionally, passenger fares will remain unchanged at state-run Hellenic Railways (OSE), while freight rates will rise by 5 percent.

Finally, an announcement on the cab fares is expected next week, with the ministry pointing to a single-digit increase instead of a double-digit hike demanded by taxi owners.

[27] Competition authority to fine Greek banks

The general directorate of the Competition Commission said the case would be examined in April 17. The authority recommended the imposition of a fine against the Hellenic Bank Association saying that the policy hindered competition in the banking sector.

[28] Gov't sets priority on innovation

Each year from 2007 will be named "Innovation Year" with 2005-2010 already dubbed "Competitiveness Year," Sioufas told a meeting on innovation in practice arranged by the ministry.

"We can and must invest in innovation," he noted.

[29] Winter sales begin

Deputy Development Minister Yiannis Papathanasiou left open the possibility of the sale period beginning earlier as of next year, noting that such a thing will be decided after the course of the institution during this year's crisis as well are evaluated.

The development ministry and the relevant General Consumers Secretariat have issued a special informative pamphlet containing instructions on what the consumer should take note of during the sales period.

Consumer General Secretary Yiannis Economou said that the pamphlet is titled "What I must take care of during the sales. I choose carefully, I purchase correctly."

It contains all necessary information to enable the consumer to know what he must take care of when making his purchases during the sales period and what his rights are. Moreover it contains useful instructions on how to check purchases so as not to burden the family budget needlessly, as well as the quality of goods.

[30] Greek diplomat rings NASDAQ open

A senior Greek diplomat, Adamantios Vassilakis, on Monday rang the opening bell for trade on the NASDAQ market.

At the ceremony Vassilakis, who is the country's permanent representative to the United Nations, spoke of investment opportunities in Greece.

"In recent years, a small country like Greece has shown that it can achieve much," he noted.

NASDAQ's deputy chairman, Willian O'Brien, told the ceremony that the Athens 2004 Olympics were highly successful and had spurred new investment from abroad.

Vassilakis headed Greece's election campaign for the UN Security Council and on its successful completion was entrusted with leadership of the Greek delegation during its tenure.

[31] E-travel reservations rose significantly in Greece last year

According to figures released by Expedia, turnover of electronic travel reservations almost doubled in the 12-month period from November 2005 to November 2006, to 15.3 million US dollars, compared with the corresponding previous 12-month period. Turnover of e-travel reservations in Greece was just 588,000 US dollars in 2002.

The figures were released during a series of special events held in Patras and Zakynthos to celebrate the signing of a strategic partnership agreement between the Panhellenic Hoteliers� Federation and Expedia.

[32] Vivartia raises equity participation in EDITA to 30 percent

After completion of the transaction, Vivartia will hold a 30 percent of equity capital in EDITA and will boost Vivartia�s earnings per share by around 0.01 euros.

EDITA is a producer and distributor of croissant and cakes in Egypt. Its sales totalled 34.3 million euros and its pre-tax, interest and amortization earnings were 10.9 million euros in 2005.

[33] ASE temporary suspends trading in Tasoglou-Delonghi

[34] Lannet to hire Orange as consultant

Orange Business Services offers consultancy services to alternative network operators for the design and development of high technology networks, Lannet said in a statement.

The agreement will not envisage equity participation by Orange Business Services in Lannet's share capital, the statement said.

[35] Greek export managers forum Jan 23-24

Taking part in the forum, which is under the aegis of the finance ministry, will be 1,000 companies.

Finance Minister George Alogoskoufis is to launch the event.

[36] Bourse lifts trading freeze on Delonghi

The suspension was ordered on Monday.

Delonghi said that it would wholly acquire Vasiliou Vellani Brothers for five million euros.

[37] "Furnidec Business" furniture exhibition opens on January 26

The four-day exhibition, directed exclusively at sector professionals, is expected to attract important trade visitors from Greece and abroad leading to new business deals.

A total of 152 exhibitors (129 from Greece and 23 from Egypt, Bulgaria, United Arab Emirates, India, Italy, Cyprus, Malaysia, FYROM, Turkey, Belgium, Germany, Denmark, Spain and Poland) take part in the exhibition covering a space of 13,000sqm.

More subsidies this year for students' food

This year's subsidies to universities and technological foundations to cover the operational expenditures and the expenditures for students' food-stuff, have increased.

According to a decision signed by the education minister, the subsidies for operational expenditures in 2007 for universities come to 212 million euros, while the expenditures for students' food-stuff come to 27 million euros.

Correspondingly for technical foundations, the subsidies for operational expenditures amount to 146.6 million euros, while the expenditures for students' food-stuff come to 19.6 million euros.

[38] Greek stocks end flat on Monday

Most sectors ended higher with the Food-Beverage (1.86 pct), Constructions (0.94 pct) and Financial Services (0.57 pct) scoring the biggest percentage gains of the day, while the Media (2.90 pct), Utilities (2.07 pct) and Oil (1.89 pct) suffering losses.

The Big Cap index rose 0.04 pct, the Mid Cap index ended 0.15 pct higher and the Small Cap index eased 0.48 pct

Mesohoritis (19.61 pct), Tria Alpha (19.50 pct) were top gainers, while Intralot (14.10 pct) and Ikona-Ihos (9.62 pct) were top losers.

Broadly, decliners led advancers by 129 to 116 with another 66 issues unchanged.

Sector indices ended as follows:

Insurance: -0.66%

Industrials: -0.57%

Commercial: +0.02%

Construction: +0.94%

Media: -2.90%

Oil & Gas: unavailable

Personal & Household: +0.25%

Raw Materials: +0.46%

Travel & Leisure: -0.78%

Technology: +0.25%

Telecoms: -1.56%

Banks: +0.56%

Food & Beverages: +1.86%

Health: +0.84%

Utilities: -2.07%

Chemicals: +0.36%

Financial Services: +0.57%

The stocks with the highest turnover were National Bank, Intralot, Alpha Bank, OTE, and Piraeus Bank.

Selected shares from the FTSE/ASE-20 index closed in euros as follows:

Alpha Bank: 25.42

ATEbank: 4.24

Public Power Corp (PPC): 20.84

HBC Coca Cola: 30.10

Hellenic Petroleum: 10.80

Emporiki Bank: 22.80

National Bank of Greece: 37.60

EFG Eurobank Ergasias: 29.76

Intralot: 24.36

Cosmote: 24.00

OPAP: 30.96

OTE: 23.14

Titan Cement Company: 43.44

[39] Derivatives Market Close: Intracom top in stock futures trade

Stock Futures:

Bond Market Close: 10-yr benchmark

at 4.27 pct

[40] Foreign Exchange Rates

U.S. dollar 1.303

Pound sterling 0.660

Danish kroner 7.513

Swedish kroner 9.197

Japanese yen 158.7

Swiss franc 1.631

Norwegian kroner 8.434

Cyprus pound 0.583

Canadian dollar 1.532

Australian dollar 1.651

General News

[41] Minister sounds alarm over waste management crisis in Greece

According to the minister, central government had completed national planning, passed the necessary legislation and outlined specific policy guidelines that local authorities should now put into action.

He also pointed out that there was no need for a new environ-mental policy but only to implement the policies already formulated by the environment ministry on this issue, which covered all forms of waste management from landfills to recycling, incineration, composting and biological processing.

Regarding planning for three new landfill sites in Attica, in Fyli, Keratea and Grammatiko, Souflias said a final decision was still pending from the Council of State, Greece's supreme administrative court but noted that the recommendations to the court were positive so that the final decision was also expected to be positive.

The minister stressed that the government had done its part, which was to pass laws, formulate policy and monitor its implementation, and that it was now up to regional and local authorities to decide which method or methods they will use to handle waste in their district, using the tools provided by the ministry.

Noting that landfill sites would be necessary regardless of the other waste management methods used, he nevertheless underlined that it must not be the only solution for handling solid wastes:

"We must not forget that from the management of waste we want the production of power and fertilizer and, in every case, the recovery of recyclable materials - a landfill does not give us any of these," the minister added.

He advised the use of a combination of waste handling methods that would reduce the volume of rubbish ending up on landfill sites, while pointing out that there will always be a residue, regardless of what methods are used.

Souflias also warned that the need to deal with the waste management crisis in Greece was imposed both by environ-mental considerations and the prospect of heavy fines from the European Union, advising local authorities to pick up the pace in this area.

And pointing out that recycling begins at home, he called for publicity campaigns to advise the general public on the need to recycle and separate wastes from recyclable materials.

[42] Hazardous waste management

All industries would have to submit studies for waste handling by the middle of the year, while the system would be organized along the lines of a "polluter pays" scheme, in which the ministry would carry out inspections to ensure that the guidelines were followed and impose penalties where necessary.

Targets for waste management

Noting that recycling rates in Greece in the past two years had reached 14% and were estimated to rise to 20% in 2007, Souflias listed a series of targets for reducing the volume of biodegradable wastes sent to landfills and the rehabilitation of unsupervised dumps by 2008.

Regarding biodegradable wastes, he said that the aim was to reduce the amounts going to landfills to less than 1,950,000 tonnes in 2010, 1,300,000 tonnes in 2013 and 900,000 tonnes in 2020.

With respect to unsupervised dumps, the minister said that 2,626 had been recorded throughout Greece and 1,850 had already closed. Of these, 615 were low-risk and were being restored by local authorities themselves, while for another 552 the restoration work had been inducted into various funding schemes.

[43] Increase of fires in countryside due to high temperatures

Specifically, the Firebrigade's headquarters said that since December 1, 2006, 824 fires occurred in agricultural and forest expanses compared to 234 fires during the corresponding period last year. This means that the increase this year reaches about 350 per cent.

[44] Culture ministry sends extrajudicial protest to Christie's

[45] Voulgarakis also gave the extrajudicial protest to the ambassador of the United Kingdom in Greece.

[46] Greek Culture Centre in Sweden at risk due to funding problems

The centre has collected a library of 30,000 books and archival material of mainly Greek interest, in addition to ancient artifacts, works of art and traditional costumes from Greece and a sizeable map collection.

It was set up with the support of funds from the Stockholm local authority and the Swedish state, which have now been so drastically reduced that the centre, which works predominately with volunteers, is no longer able to cover basic running costs, such as rent.

A final decision on its fate is expected within the next two-three weeks. In the meantime, on January 27 the centre will open an art exhibition featuring etchings by Nikos Terzis inspired by the book "Report to Greco" by Nikos Kazantzakis, while on January 28 the Swedish edition of Kazantzakis' book, "Rapport till Greco" will be presented by Prof. Torkel Stalmack.

[47] Sophocles' Antigone presented in Istanbul

Sophocles' 'Antigone' was due to be presented in Istanbul again, 18 years after its last staging, by the 'Theatrical Club' at the Babylon Cultural Center, on Monday evening.

The tragedy, which is directed by Spyros Vrahoritis, was to be staged in the original text with the cooperation of the General Consulate of Greece and the Arts Society "Synthesi". The event is being organized under the auspices of the Greek foreign ministry.

[48] Young overseas Greeks meet Archbishop of Athens Christodoulos

The young people arrived in Greece in the framework of the program "Greek language and culture", that is being implemented by the Overseas Hellenism General Secretariat in cooperation with the Church organization "Solidarity."

"It is a privilege for one to have Greek roots," the Archbishop said and referred in particular to the contribution of ancient and Byzantine Greece to the shaping of modern civilization.

[49] 'Solidarity' to send more humanitarian aid to Lebanon

As announced by the Archbishopric on Monday, it is the fourth mission which "Solidarity" conducts in Lebanon, while the gathering of humanitarian aid is continuing.

[50] New round of strike action by students

Specifically, the students stressed that they will react against the prospect of the revision of Article 16 of the Constitution as well as against the promotion of the bill for changes in universities.

The students will hold a rally in Athens on Wednesday, while they are planning to block roads and railway stations.

They claim that they support all forms of strike action which student associations will take in every city separately.

[51] Border guards find 90 kilos of cannabis in Ioannina's forest region

The drugs were hidden in a canal in the forest region of Ioannina's Roupsia and Geroplatanos Pogoniou area.

[52] Small-scale disturbance in Thessaloniki

Meanwhile, unidentified suspects caused tossed firebombs at a Pireaus Bank branch in central Thessaloniki at roughly the same time.

[53] Instructions on making of bombs found in homes of youths arrested after Panathinaikos-Olympiakos volleyball match

According to an announcement by the police, items found and confiscated included a pamphlet titled "explosive materials-explosive devices", a 10-centimetre stiletto, a wooden 56-centimetre club containing a nail at the end, a 29-centimetre sword, a 25-centimetre blade, a Cretan knife, a serated knife of the type used by the military and various other items that can be used as weapons.

[54] Turk arrested on Samos on charge of immigrant smuggling

So far, Samos law enforcement authorities have found 12 illegal immigrants of various nationalities that were on the boat, who have been taken to the island's reception centre, while the Turk was led before a public prosecutor.

According to witness accounts, another five illegal immigrants that arrived with them are still at large.

Sports

[55] Presidential Decree containing specifications for car racing tracks

According to the Decree, the founding and establishing of car racing tracks can take place in a unified plot of land covering an area of at least 100 acres and will lie outside residential areas, forest land, archaeological sites and restricted areas in general.

On the question of a racing track's location, the Decree contains specifications with town planning criteria, as well as specifications concerning its installation

Cyprus Affairs

[56] Government looking forward to a meaningful process on Cyprus

The Cyprus government is looking forward to the commencement of a meaningful process which would allow for thorough preparation of the ground, on which basis the good offices of the UN Secretary-General could be fully resumed, aiming at a comprehensive settlement of the Cyprus problem, President Tassos Papadopoulos stressed here Monday.

Receiving the credentials of the new Ambassador of Hungary to Cyprus Csaba Lovro, Papadopoulos also noted Turkey's refusal to implement the Ankara Protocol with regard to Cyprus, indicating that "the reviews which will take place at the end of 2007, 2008 and 2009 may lead to further measures by the European Council, if Turkey continues not to implement the Additional Protocol of the Ankara Agreement and does not normalize relations and recognize all members of the European Union."

Τhe Hungarian Ambassador, presenting his credentials, said that from the very beginning Hungary has been firmly in support of efforts aimed at solving the Cyprus issue through peaceful dialogue.

"A comprehensive, lasting and just solution can be attained through negotiations under the UN auspices, in line with the relevant Security Council resolutions and by the agreement of the parties concerned, in conformity with the EU principles. Hungary plays an active role in UN Peace-keeping operations and will continue to contribute to the activity of UNFICYP," he said.

Furthermore he said that Cyprus' and Hungary's accession to the EU on 1st May 2004 "marks the commencement of a new era in the life of our countries as well as in our bilateral relations", adding that "EU membership has elevated our bilateral relations to a new level."

He noted that "Hungary and Cyprus have cordial and balanced bilateral relations, the high-level political dialogue is regular" and said he expected a number of important visits to take place in 2007.

Replying, Papadopoulos referred to the excellent relations between the two countries, noting Hungary's continued participation in UNFICYP is greatly appreciated by the Cypriot people.

On the Cyprus question, he stressed that "the government remains committed to the reunification of Cyprus under a bizonal, bicommunal, federal solution of the Cyprus problem, as set out in the relevant United Nations Security Council resolutions. The reunification of Cyprus means reunification of the islands territory, society, economy and institutions," he added.

Referring to the Annan plan, he said that the plan was rejected by the Greek Cypriots because it did not provide for true reunification of Cyprus; on the contrary, it clearly provided for the perpetuation of the divisive results of the Turkish invasion of 1974 and the continuing occupation.

"This is why the Turkish side readily accepted the Annan Plan, albeit with the vote of Turkish settlers who were transferred to Cyprus after the invasion," he added.

He stressed that it is thus of utmost importance that in a new UN effort, the objective should be a Cyprus settlement that would serve exclusively the interests of the people of Cyprus as a whole and not the interests of third countries such as Turkey.

With regard to the implementation of the 8 July 2006 Agreement, between himself and the leader of the Turkish Cypriot community, Papadopoulos said that "we are looking forward to the commencement of a meaningful process which would allow for thorough preparation of the ground, on which basis the good offices of the UN Secretary-General could be fully resumed, aiming at a comprehensive settlement of the Cyprus problem."

Referring to Turkish Cypriots, he said that the government far from causing the so-called 'economic isolation' of the Turkish Cypriots, on the contrary it has effectively supported the economic development of the Turkish Cypriot community.

"The so-called economic 'isolation' of the Turkish Cypriots is a myth, which aims at political objectives, i.e. the upgrading, of the secessionist entity. This is why recently the Turkish side has stopped talking about 'economic' isolation and is now promoting the slogan of 'international' isolation," the president indicated.

Cyprus has been divided since 1974, when Turkish troops invaded and occupied 37% of its territory.

[57] EU FMs adopt text on financial aid and direct trade regulations

The EU 27 Ministers of Foreign Affairs who met Monday in Brussels adopted a text by which they express their will

for the recommencement of work aiming at implementing April 2004 conclusions with a view to promote the financial development of the Turkish Cypriot community. Cyprus was represented at the meeting by Minister of Foreign Affairs George Lillikas.

Diplomatic sources in Brussels said that any discussions are not expected to begin within the next days, as the EU German Presidency wishes to prepare the issue properly, in cooperation with the Cypriot government.

The text was already adopted by COREPER and no country took the floor on the issue on Monday, while the Presidency made no announcement as regards the deadline for the beginning of the work.

The adopted text said that "with respect to the implementation of its April 2004 conclusions, the Council notes the progress made in particular as regards the financial aid regulation, the objective of which is to facilitate the reunification of Cyprus. Work aiming at the adoption of the Commission proposal for a Council Regulation on special conditions for trade with areas of the Republic of Cyprus in which the Government of the Republic of Cyprus does not exercise effective control, must resume without delay."

Lillikas met in the framework of the Council with British Minister for Europe Geoff Hoon, at the latter's initiative.

Hoon expressed his will to visit Cyprus before Easter, something which Lillikas accepted, noting that he is more than welcome.

[58] Cyprus anticipates a new effort by UNSG after sufficient preparation

The Cyprus government anticipates a new effort to be launched by the Secretary General of the UN following sufficient preparation of the ground through the full implementation of the agreement reached between the two leaders on the 8th of July 2006, and the process proposed by the UN, Cypriot Minister of Foreign Affairs George Lillikas said Monday, speaking at the Transatlantic Institute in Brussels on "The Cyprus issue after the accession of Cyprus to the EU".

Lillikas assured that ''our steadfast aim'' remains the achievement of a negotiated and mutually acceptable solution, actively involving the EU and all five permanent members of the Security Council, adding that "our vision and our ambitions for the settlement have not changed."

He reiterated the Republic of Cyprus' position in favor of a bicommunal and bizonal federal state in Cyprus, with a single sovereignty, international personality and citizenship, in conformity with international law, UN resolutions, the high level agreements, the EU acquis, and decisions of the European Court of Human Rights and the guarantee of the independence of Cyprus and its territorial integrity without the presence of foreign troops on its soil and the possibility of foreign interventions.

Lillikas assured that ''the solution of the Cyprus problem and the reunification of our country, our society, economy and institutions remains our constant concern and undeviating goal," adding that "current developments however do not leave room for hopes that Turkey is ready to make the necessary gestures in order to achieve progress, either in the good offices mission of the UN Secretary General or on the EU front."

"The process of bicommunal discussions at a technical level to address substantive aspects of the Cyprus problem, as well as issues that impact upon the day-to-day lives of Cypriots is unfortunately stalled because of the Turkish negative approach. In the EU context, Turkey has maintained a policy of confrontation by refusing to meet its obligations undertaken towards the European Union, including Cyprus," he added.

He noted that despite Turkey's stated European vocation, she still remains entangled in an anachronistic policy and approach of what it considers to be her geostrategic interests.

Lillikas said that while the UN retains its leading role in brokering a solution, it must nevertheless ensure that the proposed settlement conforms from the outset to the European laws and principles.

"This is a legitimate and necessary role attributed to the Union that should have no problem being accepted since all parties involved in the problem are either members or aspire to become members of the EU," he noted.

Referring to Turkey's EU accession course, he said that despite its legitimate reasons not to consent to Turkey's accession course, Cyprus has rendered its support to this process, prompted by the strong belief that this process will serve the bona fide interests of Cyprus, as well as the mutual benefit of all parties involved, namely Turkey and the EU.

He added that regrettably, until now, Turkey's continuing intransigence and denial to fulfill its commitments towards the Union and Cyprus ''have not offered us any ground for optimism.''

''However, we very much maintain our expectation that Turkey will at least proceed with the implementation of its legally binding obligations vis-à-vis the European Union,'' he added.

Furthermore he noted that Cyprus' generous attitude towards Turkey's accession to the EU ''is met with a blockade against my country in its bid to join several international and regional organizations and mechanisms, a refusal to open their ports and airports to Cypriot vessels as required and a refusal to take any steps for normalizing its relations with Cyprus.''

He stressed that ''we expect that Turkey will realize that it has to respect the European principles, as well as its future partners and neighbors.''

Moreover the minister said that Turkey's provocative stance is not questioned by the Turkish Cypriot leadership, ''which continues to promote policies that do not serve the real interests of the Turkish Cypriots but those of the occupying power."

He also referred to the EU regulations with a view to promote the economic integration in Cyprus and to the adoption of a series of measures by the Cyprus Government since 2004, to assist the Turkish Cypriot community.

Lillikas referred to the efforts by Ankara and the Turkish Cypriot leadership to upgrade the so-called state in Cyprus' Turkish occupied areas, "through the ill-conceived notion of 'isolation of the Turkish Cypriot community'.''

He noted that "despite these actions on the part of the Turkish Cypriot leadership, we are currently working closely with the German EU Presidency in order to move forward the regulation on trade for the areas of the Republic of Cyprus which are not under the effective control of the Government.''

"In this case too, the Turkish Cypriot leadership and others are aiming at obtaining a trading status that prevents any economic and commercial cooperation between the two communities," Lillikas said.

He expressed the belief that "in situations such as Cyprus, we ought to be aiming at fostering common interests and incentives between the citizens of both communities, and I would go a step further by saying common problems as well.''

Elaborating on Cyprus' role in the EU, Lillikas said "the accession of Cyprus to the EU has contributed to the political, economic and military expansion of the Union towards the Eastern Mediterranean and Cyprus has become a bridge to the Middle East."

"Furthermore, the strategic importance of Cyprus as an alternative, in relation to Turkey, access to this area is becoming more and more apparent," he said.

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