Athens News Agency: News Bulletin in English, 07-03-02

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

CONTENTS

[01] Papandreou outlines main principles of PASOK's new programme

[02] Karamanlis-Benaki meeting focuses on upcoming Parliament sessions

[03] PM briefed on tourism-related actions, programmes

[04] Athens criticises Turkish move over Aghios Efstratios

[05] US State Department on cancellation of NATO exercise at Aghios Efstratios

[06] Gov't: No fixed date for PM's visit to Australia yet

[07] Informal EU defence ministers conference begins in Wiesbaden

[08] Government spokesman denies new law will reduce student numbers

[09] Three arrested during protest against education bill in Athens

[10] Three students arrested during disturbances in Athens to appear before court

[11] FM spokesman: Greek-Russian relations 'excellent'

[12] Cyprus-France agreement 'very important', Athens says

[13] SI president Papandreou gives interview to 'Unric Magazine'

[14] State Dept. spokesman on press reports citing Israeli pressure on Jerusalem Patriarchate

[15] Health minister on new bill concerning supplies to hospitals

[16] Papaligouras meets Russian Audit Foundation president

[17] Prefectural local governments to receive 20% increase in funds

[18] Greece privately places first-ever 50-year bond issue worth one billion euros

[19] Employment ministry draft bill to increase unemployment benefit

[20] PASOK's Damanaki criticises draft bill as a "party-political favour"

[21] Sioufas holds series of energy-related talks with foreign ministers, executives

[22] Matvienko confident pipeline deal will be signed soon

[23] Lecture on Russia's role in the supply of hydrocarbon to the world market

[24] Deputy FinMin Christos Folias expresses satisfaction over tourist investment

[25] Greece ranks 24th in world tourism competitiveness index

[26] Projects worth 1.6 billion euros included in institutional framework

[27] Arab businesses 'vehicle' for northern Greece businesses, deputy FinMin says

[28] Employment minister orders audit at Civil Servants Auxiliary Insurance Fund

[29] GDP increases 4.3% in 4Q 2006, yr/yr

[30] Probank says net pre-tax earnings at 19 million euros, eyes bourse listing

[31] EFG Eurobank eyes Cypriot market

[32] Greek stocks slide 2.97 pct lower

[33] Greek bond market closing report

[34] Foreign Exchange Rates - Friday

[35] Equality secretary general addresses UN session on state of women

[36] Elaboration of national action plan for combating of narcotics

[37] Slight increase of hashish cultivation in Greece, US report shows

[38] Sarbel to represent Greece with 'Geia Sou Maria' at 2007 Eurovision Song Contest

[39] Total lunar eclipse to begin on Saturday night

[40] ND offices in Chania, Crete attacked by youths

[41] Conscript arrested for disclosing classified military files

[42] Tax assistance for US citizens residing in Greece

[43] Weather forecast: Local showers on Friday

[44] The Athens dailies at a glance

[45] Cyprus President: Turkish denial impedes the opening of Ledras Street

[01] Papandreou outlines main principles of PASOK's new programme

He was addressing a joint session of PASOK's Political Council, Parliamentary Council and Programme Committee.

While not going into specifics, which he left to Programme Committee chairwoman Anna Diamantopoulou, Papandreou referred to 10 "non-nego-tiable" points in the programme that he would personally guarantee to carry out if the party were re-elected to power.

One of these was to establish a "new model of governance", which he followed by pledges for increases in social spending in a number of key areas.

Among these he listed an increase in spending on education and establishing a minimum standard of living through a basic pension of 950 euros a month for couples and 550 euros a month for singles above retirement age - including farmers - even if they were not fully covered by their pension contributions.

In addition, Papandreou pledged to extend the EKAS low-pension supplement to another 300,000 pensioners.

Another series of measures listed by PASOK's leader targeted families and included the payment of a 2,000-euro benefit for the birth of every child, for which a further 1,000 euros would be placed in a time deposit investment account.

For young people, he promised to ensure four years of employment with full social insurance coverage and gradated payment of social insurance contributions and to bring unemployment benefit to 70 percent of the basic wage within the government's term, while he also pledged to set up a agricultural cooperatives' school providing certificates and higher degrees in farming-related disciplines.

The environment would also take priority in PASOK's programme, acquiring its own ministry and a commitment to produce at least 10 percent of energy from renewable sources by 2012, he noted.

Closing his address with a diatribe against the present government, Papandreou said that it was an "obstacle" to the country acquiring a dynamic course.

He accused the government of "creating polarisation and conflict everywhere" for the sole purpose of serving "petty party-political and big economic interests".

Papandreou's 10 measures

Addressing the meeting, PASOK's leader stressed that he was not prepared to negotiate on any of the 10 measures that he outlined, saying that these were the "minimum basis of necessary social goods that would allow social cohesion to exist".

For changes to the model of governance he envisaged a new decentralised, regional structure with two levels of local government, a new 'Kapodistrias' law joining municipalities and decentralisation of ministry responsibilities based on cities. He also called for a radically different electoral system that ensured the autonomy of political parties, ended their dependence on financial interests and the media, ensured transparency and put citizens in control of democratic institutions.

A second pledge was a radical overhaul of public admini-stration, making full use of new technology to increase transparency and accountability, fight bureaucracy and corruption, while reducing the influence of political parties and the powers of ministers to "hand-out" cash.

PASOK's leader particularly emphasised his plans for the education sector, promising to make Greece a "centre for educational services" in its region and a "ground-breaker" in education and culture. He also pledged that every Greek family would have access to quality education at all levels, for which it would have to pay progressively less, and that spending on education would increase to 5% of GDP, with an extra one billion euros paid out in the first PASOK government budget. For universities, he envisaged self-administration, evaluation, accountability to society, certification and democratic control, turning them into "international institutes".

Outlining PASOK policy on taxation, Papandreou said he would ensure a redistribution of income in favour of the economically weakest, linking of tax brackets with the cost-of-living index, objective and fair taxation of wealth and property, and with an improved ratio of direct to indirect taxation than at present.

In addition to the higher minimum pension and lump sum paid to families having new babies, PASOK's leader announced plans to double the number of day-care centres for infants and to guarantee every Greek access to primary medical care on a 24-hour basis throughout the year, as well as introducing the concept of community work for the unemployed, allowing them to contribute to society and to find work and prospects.

On the environment, he outlined a policy of new 'green' development that would be intimately linked with the new regional development policies and the subject of research into cutting-edge technologies, as well as a fundamental element of new, quality, alternative tourism.

PASOK's leader also listed a series of measures targeting rural regions and Greek farmers, who will have the security of the new minimum pensions when they retire, as well as incentives to attract young farmers to the countryside.

Gov't spokesman responds to PASOK leader's statements

Minister of State and government spokesman Theodoros Roussopoulos on Thursday evening responded to statements made earlier in the day by main opposition Panhellenic Soci-alist Movement (PASOK) leader George Papandreou while unveiling the main principles of the party's program.

Roussopoulos said that "Mr. Papandreou, instead of a studied program, read out a brochure of general promises," adding that "the off-handedness is shown clearly in his text."

The government spokesman said that Papandreou "promises a new electoral system when in the next elections, implemented for the first time will be the electoral system which PASOK sped to vote on the eve of the 2004 elections. That is, he rejects it even before it is tried, while he himself voted for it then. Is he taking back his vote?"

Roussopoulos added:"He promises universities which will be 'self-governed, assessed and answerable to society', as he says, when the day before yesterday he himself in Parliament rejected the bill, which implements for the first time the real self-administration in universities."

The spokesman went on to say that the PASOK leader "pro-mises a small and flexible state and simultaneously conti-nuously speaks about a regulatory presence of the state in everything."

Concluding, Roussopoulos said that Papandreou "promises a redistribution of income and lower taxation. However, which is the truth? The PASOK governments imposed about 80 new taxes in the past years and despite this, they excessively increased the fiscal deficits. Today's government is reducing taxes both for businesses and private individuals."

[02] Karamanlis-Benaki meeting focuses on upcoming Parliament sessions

Psarouda-Benaki stated that they agreed on certain dates and discussed legislative work-related issues.

Responding to a relative question, Benaki said the legislature's docket is set until summer, when another meeting will be held. The latter query more-or-less aimed at ascertaining if early elections are pending.

She also stated that Parliament runs on a tight schedule with an education ministry-sponsored draft law currently under discussion to be followed by several more government draft bills.

Finally, Psarouda-Benaki said an off-the-agenda discussion requested by the main opposition PASOK party leader is pending, followed by a second vote on possible future revisions to the Constitution.

[03] PM briefed on tourism-related actions, programmes

In statements to reporters afterwards, Petralia said that the signs for the current year in tourism appeared to be good.

"At the tourism development ministry we have presented the "tourism charter" on a regional basis, because we consider that it is the goal and purpose of every region, every prefecture and every municipality, since it is an element of economic growth in every area," Petralia underlined.

During the meeting with Karamanlis, the minister also outlined the progress of an initiative to create 35 kilometres of cycle paths and promenades along the Athens coast, from the Peace and Friendship Stadium in Faliro up to the seaside resort of Varkiza, that is gradually beginning.

"Athens, the Attic basin must reach out to the sea and must breathe. This is an ambitious project that we are planning and in the coming period I will meet with the mayors of those areas, so that we can have a final study and go ahead with implementation," she said.

Asked about when elections were likely to be held, Petralia criticised election speculation as harmful to political life in Greece and a form of "political gossip".

"The government has a heavy agenda and a lot of things to do. We must carry out the things that we promised to the Greek people," she added.

Petralia underlined that her own ministry also had alot of work ahead in order to achieve its goal of extending the tourist season, which would be its programme for the current summer, autumn and upcoming winter seasons.

Gov't again comments on Turkish demand to NATO over Aghios Efstratios

The government on Thursday again fielded press questions related to a more-or-less impudent request by Ankara's military establishment last week demanding that the NATO alliance declare a small Greek isle in the north-central Aegean as a demilitarised zone.

Alternate government spokesman Evangelos Antonaros merely echoed previous statements by Greek leadership, namely, that Athens is very adept at effectively defending its national interests and sovereign rights.

The isle in question is Aghios Efstratios, a small and remote island south/southwest of Limnos and west/northwest of Lesvos.

Asked, moreover, about a recent defence agreement between the Republic of Cyprus and France, Antonaros said he does not usually comment on initiatives between two foreign states. He did stress, however, that Cyprus is an independent country, a member of the United Nations and the EU, and is within its sovereign rights to sign international and bilateral accords.

[04] Athens criticises Turkish move over Aghios Efstratios

Replying to press questions, foreign ministry spokesman George Koumoutsakos said that the action was "completely groundless on the basis of international law and international treaties, including the peace treaty of Lausanne," while stressing that it was therefore unacceptable".

"Through this move, they are not only disputing the sovereign rights of an allied country but also undermining the cohesion and efficiency of NATO," he underlined.

The spokesman said that Athens had instructed Greece's permanent representative at NATO to meet on this issue with NATO Secretary-General Jaap de Hoop Scheffer.

Asked whether the incident would affect Greece's relations with Turkey, Koumoutsakos noted that these had never been "straightforward" in their development and that it was "the duty of responsible political leadership... to take the action necessary to enter a period of improvement and calm".

He indicated that a planned visit by Turkish Foreign Minister Abdullah Gul would probably not be affected as a result of the incident.

"It is the business of foreign ministers to meet and talk. There is no interruption in the channels of communication between states, because this is something useful for the interests of the country and the handling of its international relations," he said.

Koumoutsakos made the statements in the wake of a request by Ankara's military establishment last week that the island of Aghios Efstratios be declared a demilitarised zone that was not eligible for NATO exercises. The small, sparsely inhabited island lies between the larger Greek islands of Limnos and Lesvos, south-southwest of the former and north-northwest of the latter.

[05] US State Department on cancellation of NATO exercise at Aghios Efstratios

The decisions regarding the cancellation of the NATO exercise in the northern Aegean island of Aghios Efstratios were taken by NATO and therefore any questions around this issue must be raised to the relevant agencies of the Alliance, State Department spokesman Sean McCormack said on Thursday when asked by reporters to comment on NATO's specific decision.

The spokesman reiterated that it is an issue which concerns the Atlantic Alliance, adding that despite the fact that the relevant officer who took the decision is an American, he acted within the framework of his competencies to NATO's institutions.

McCormack also expressed the 'full support' of the United States to the Lausanne Treaty and its implementation.

[06] Gov't: No fixed date for PM's visit to Australia yet

Asked to comment on a quip made last week by Australian Prime Minister John Howard, who referred to the struggle against urban terrorism in Greece within the context of statements regarding the current situation in strife-plagued Iraq, Antonaros merely said that the country is absolutely safe, something ascertained by the roughly 15 million tourists who visit Greece annually.

"No unfortunate statement can change that," he said.

Howard's statement was lambasted by lawmakers and ethnic Greek representatives in the country.

[07] Informal EU defence ministers conference begins in Wiesbaden

Referring to the issue of Kosovo during his address, Meimarakis said that Greece is particularly interested, as a neighbouring country, in the finding of a balanced solution to the issue of the future status quo of Kosovo and stressed that Greece agrees absolutely with Javier Solana on the need for a UN Security Council resolution as a legitimising basis for the implementation of the final solution and whatever mission by the EU.

The EU is considering sending a non-military mission to Kosovo, in the sectors of a state of law and democratic institutions, a mission that is very important both for the local population and the EU's credibility, according to defence ministry press release.

Also discussed was the possible participation of the EU in Afghanistan with police forces (non-military mission) and the significance of such a mission for backing the Afghan government and the Afghan people.

Issues concerning the EU's military potential (General Military Target for 2010) and European Defence Organisation matters will be discussed during Friday's session.

[08] Government spokesman denies new law will reduce student numbers

Citing a statement made by Education Minister Marietta Yiannakou, alternate government spokesman Evangelos Antonaros said that the number of candidates accepted by universities and TEI was currently decided jointly by the education ministry and the institutes themselves.

Universities and TEI make their recommendations, which are sent to the ministry for approval, and the ministry has so far approved numbers significantly higher than those suggested by the institutes, he said.

Once the framework bill is passed, the number of students would be decided based on the four-year programme prepared by higher education institutes and the agreement made with the education ministry, which would retain the final say on the number of students accepted.

According to the spokesman, the new system would allow for better planning since it would have a four-year duration and both universities and candidates would have a better idea of what they were aiming for.

He also noted that the numbers eventually accepted into higher education were linked to a number of factors and not just funding issues.

Antonaros denied that the government intended to introduce fees for undergraduate studies, as per a proposal by the rector of Thessaly University.

[09] Three arrested during protest against education bill in Athens

Police said a group of demonstrators in the middle of a protest march had attacked the ministry with firebombs and broken the padlock on the main gate, spilling paint in the forecourt.

During the incident, a special guard on duty at the ministry fired a warning shot into the air, without injuring anyone. An inquiry into the incident was launched immediately, while the public prosecutor at central police headquarters was informed.

Riot police rushed to the scene and dispersed the protestors using teargas.

Of the three taken into custody, two will be detained and led before a public prosecutor on Friday, police announced.

Meanwhile, a group of demonstrators broke away from the main body of the protest march and made their way to police headquarters on Alexandras Avenue, arriving outside the building late on Thursday afternoon to demand the release of those taken into custody during the incidents on Filellinon street.

A police cordon has been set up outside the building.

The protest rally began on Thursday afternoon in central Athens, with the participation of students, highschool pupils and teachers. It was held in protest against the government planned reforms to higher education.

[10] Three students arrested during disturbances in Athens to appear before court

The disturbances heightened at about 4 in the afternoon when a group of about 50 people attacked the Ministry of the Aegean, the offices of the European Union and other buildings located in Fillelinon street with crowbars, planks of wood and stones.

According to the police, the ministry was attacked with firebombs, planks and other objects and windows were smashed. Demonstrators also smashed the windows of the guardhouse and threatend the life and physical integrity of the guard on duty, whom they tried to strike with crowbars and planks.

The guard fired a warning shot, an act that police attribute to legal self defence. The three students were arrested at this point. Two for throwing objects and a third for trying to free them.

The disturbances in Athens began at the intersection of Eolou and Stadiou streets when demonstrators attacked employees of the Eurobank with crowbars, planks and other objects, forcing them to leave the premises and then seizing two surveillance cameras. Groups of youths also attempted to damage shops and cars in Stadiou street but were prevented by police.

A section of Alexandras avenue remained closed to traffic until about 10 on Thursday night, as demonstrators had assembled to demand the release of the three arrested students. At about the same time, deputies of the Coalition of the Left, Movements and Ecology (Synaspismos) party left the building of the Attica General Police Department in Alexandras avenue, who had arrived to negotiate the release of the three students.

[11] FM spokesman: Greek-Russian relations 'excellent'

Koumoutsakos was responding to a question in relation to the planned installation of an american anti-missile defence system in NATO member states.

[12] Cyprus-France agreement 'very important', Athens says

[13] SI president Papandreou gives interview to 'Unric Magazine'

Main opposition Panhellenic Socialist Movement (PASOK) leader George Papandreou, in his capacity as Socialist International (SI) president, gave an interview to the monthly magazine 'Unric Magazine", of the United Nations' regional information centre, which is published in Brussels.

In the magazine's latest edition, Papandreou said that he has sent letters to US President George W. Bush, US House of Representatives Speaker Nancy Pelosi and to UN Secretary-General Ban Ki-moon, with which he asks of them to assume action for the protection of the environment and the confrontation of climatic changes.

Papandreou further said that 'the greatest democratic challenge which we must deal with is for every citizen to become an active member of world society,' noting that within this context, 'a stronger United Nations with a representational Security Council would constitute a positive starting point.'

Asked on the priorities set by the UN for the confrontation of crisis zones such as Sudan, the Middle East, Lebanon and Iraq, the SI president said that "the confrontation of terrorism requires the eradication of the sources which are responsible for its spreading."

[14] State Dept. spokesman on press reports citing Israeli pressure on Jerusalem Patriarchate

A US State Department spokesman on Wednesday was asked about a series of disquieting press reports out of Israel claiming that Israeli government officials used "threats" to obtain land tracts owned by the Orthodox Patriarchate of Jerusalem.

"I looked into this and this appears very generally to be more of a dispute between the Greek Patriarchate and the Israeli government. I understand there's a little bit of history here ... involving a land sale and a dispute within the Greek Orthodox Church about whether or not the former Patriarchate (the ex-Patriarch) was allowed to make that land sale," spokesman Sean McCormack said, adding:

"And then there was an appointment of a new patriarch and I think that there are some unresolved issues, shall we say, between the Patriarchate and the Israeli government. Beyond that I can't really offer any comment. We have met recently with the Greek Patriarch on the issue. It's listed in our International Religious Freedom report. There's a short explanation of what transpired but this is an issue between those two parties not really involving us," he added.

[15] Health minister on new bill concerning supplies to hospitals

In a press conference he gave in Athens, Avramopoulos said 'the processing of the new legislative framework has been completed after three years of the processing of proposals by all the agencies and it is assessed that it will contribute in the saving of at least 500 million euros annually, which will be allotted for the hiring of personnel in the health sector, but also for infrastructures which will concern psychological health.'

[16] Papaligouras meets Russian Audit Foundation president

After the meeting , Papaligouras said that he had the opportu-nity to be briefed on control processes and measures taken by the Russian Federation for preventing and cracking down on money laundering and confronting organised corruption in general.

Papaligouras briefed his interlocutors on the Greek govern-ment's "systematic effort to crack down on corruption and the justice ministry's special initiatives towards this aim."

On his part, Stepashin said that he discussed with Papaligouras issues pertaining to the two audit councils and cracking down on corruption. "When two people speak the same language then there are prospects for cooperation," he added.

[17] Prefectural local governments to receive 20% increase in funds

Nakos stated that 'for the first time since its creation, Pre-fectural Local Government acquires prestige and intervenes substantially in the growth of the regions.'

Financial News

[18] Greece privately places first-ever 50-year bond issue worth one billion euros

The bond issue is index-linked with European inflation rates. The coupon was given at 2.085 percent and expires on July 25, 2057.

The issue's advisors were Goldman Sachs, the National Bank of Greece, EFG Eurobank and Alpha Bank.

In commenting on the development, Deputy Economy Minister Petros Doukas said the success of the placement demonstrates international markets' confidence in the country's economy, allowing it to now issue bonds with a duration of 50 years when previously the ceiling was 20 years.

Conversely, top main opposition PASOK cadre Vasso Pa-pandreou criticised the government for the 'unprecedented', as she said, 50-year bond issue. She also charged that the govern-ment inherited an 18,000-euro per capita public debt and has increased it to 23,000-euros per capita.

[19] Employment ministry draft bill to increase unemployment benefit

This means that the benefit will increase to 349.5 euros a month from January 1, 2007, 367.38 euros from May 1, 2007 and to 404.11 euros on January 1, 2008, not taking into account any possible increase in the basic wage for 2008. The sums will also be increased by 10 pct for every dependent member of the person drawing unemployment benefit.

The bill also creates a new fund within the Greek Manpower Employment Organisation (OAED) called a "Special Social Solidarity Fund" that will receive funds from the government budget, EU funds and social spending funds - specifically by the redistribution of contributions already levied for OAED to fund armed forces employee benefits.

The aim of the new fund is to provide financial support and social protection for the long-term unemployed and those that are made redundant by companies that are restructuring and are at a disadvantage in the job market because they are close to the age of retirement.

Those qualifying for support from this fund must be at least 50 years of age and have paid 7,500 days worth of insurance contributions, as well as having worked for the past 900 days in companies belonging to a declining sector of the economy. They must also have worked for a company located in areas where unemployment levels are double the national average or more.

They will qualify for 80 pct of their monthly wage at the time of redundancy or 25 times their daily wage, up to a maximum of 900 euros. They will also be liable to pay insurance contributions from this sum, with the employers' contribution paid by the ETKA fund.

Alternatively, the benefit can top up subsidised salaries offered by a vocational training or retraining programme, again to a maximum of 900 euros a month.

Not eligible are those who either find other work or can be proven to have refused to find other work, as well as those eligible for a pension.

[20] PASOK's Damanaki criticises draft bill as a "party-political favour"

She said that bill's first priority was to protect employers from the requirement to pay insurance contributions, while the eligibility criteria laid out in the bill were unclear and placed matters almost wholly at the discretion of the minister.

[21] Sioufas holds series of energy-related talks with foreign ministers, executives

Bilateral trade ties and an upcoming visit by a Greek business delegation to Nigeria aimed at expanding cooperation in the energy sector ahead of the signing of a relevant agreement dominated talks between Sioufas and Nigerian Minister of Energy Edmund Daukorou. The latter also accepted an invitation to officially visit Greece.

Sioufas also met with Albanian Economy and Energy Minister Genc Ruli to discuss the next steps in expanding cooperation between the two neighbouring countries following ratification by Greece's Parliament of a bilateral energy-related agreement.

Additionally, it was announced that a joint Greek-Egyptian inter-ministerial committee will convene in Cairo in early April to focus on bilateral natural gas and oil issues, a decision taken after a meeting between Sioufas and Egyptian Undersecretary for Gas Affairs Hany Soliman.

The course of implementation of an ambitious Greece-Italy underwater natural gas pipeline expectedly dominated talks between Sioufas and Italy-based Edison group chief executive officer Umberto Quadrino.

Finally, the Greek minister met with European Investment Bank (EIB) vice-president Gerlando Genuardi for talks on possible participation by the development bank in various infrastructure projects in Greece.

[22] Matvienko confident pipeline deal will be signed soon

Matvienko, who is currently on an official visit to Greece, who was awarded an honorary distinction by Greek President Karolos Papoulias this past week, also referred to the historical and multisided nature of Greek-Russian relations in the economic, political and cultural sector.

In comments to the ANA-MPA, she underlined that in St. Petersburg alone foreign trade with Greece has doubled over a period of two years, while more than 10 major infrastructure projects are currently in progress, while foreign investments rose 40 percent in 2004 and 2005 to double in 2006.

Matvienko added that the creation of a data base for foreign investors was discussed during a visit of Greek Foreign Minister Dora Bakoyannis to St. Petersburg last November.

The high-ranking Russian official added that very active political dialogue between Athens and Moscow continues in the wake of Bakoyannis visit to Russia, reflecting the "special nature" of traditionally good Greek-Russian relations.

Finally, St. Petersburg's governor invited Papoulias to visit the famed metropolis during his next formal visit to Russia.

[23] Lecture on Russia's role in the supply of hydrocarbon to the world market

He claimed that Caspian Sea hydrocarbon 'cannot replace the great volume of Russian natural gas which is supplied to the world market, while Russia will remain an important factor in the transport also of Caspian Sea oil and natural gas.'

[24] Deputy FinMin Christos Folias expresses satisfaction over tourist investment

Commenting on the bill prepared by the finance and economy ministry "on the sanctioning of decisions concerning the subjection of Investments Plans to article 9 of law 3299/2004 'Investments Incentives for Economic Development and Regional Convergence' and other clauses, that was ratified by the deputies of the New Democracy and PASOK parties and rejected by the parties of the Left, Folias said that "the day is special" because an investment is beginning that "changes the investments map in our country."

After stressing that all governments "did what and all that they could to be able to create a mild investing climate in our country", he pointed out that the ratification of this investment "shows that indeed something is changing in our country. This is something that must be made known. In other words, it must be made known that our country is now an attractive investing destination."

Referring to those who reacted to the investment, Folias said "it is high time that we put envy aside and place competition again, at least in the market, at least in 'entrepreneurship', at least in the dialogue we are holding."

[25] Greece ranks 24th in world tourism competitiveness index

The country is behind competitors in its immediate neighbourhood, such as Spain (15th place), Cyprus (20th place) and Portugal (22nd place), though ahead of nearby Croatia (38th place), Turkey (52nd place) and Egypt (58th place).

Among Greece's strengths, according to the World Economic Forum, are the very good levels of hygiene (3rd worldwide), high levels of security (18th worldwide) and cultural resources (23rd worldwide), as well as a positive attitude of Greeks toward tourists (23rd worldwide) and a high priority to tourism in government action (22nd worldwide).

Its weaknesses include a rigid legislative framework that discourages foreign investments, where the country ranks 57th worldwide, restrictions on ownership by foreign nationals and difficulty in obtaining a visa. The country is also criticised for its travel infrastructure, which is seen as significantly inferior to that in other European countries, and a lack of specially trained personnel, where Greece ranks 55th worldwide.

According to SEB and SETE, the report highlighted that prices are not the most important factor in undermining competiti-veness. They pointed out that prices were actually higher in the countries that scored better than Greece but that these offered better-quality services and better value for money.

[26] Projects worth 1.6 billion euros included in institutional framework

Finance and Economy Minister George Alogoskoufis announ-ced that the Interministerial Committee decided to subject the projects to the clauses of law 3389/2005.

The projects include a new general hospital in the western city of Preveza, a new oncology hospital in Thessaloniki and a paediatric hospital in the same city, 11 new building facilities for the Greek Police and the construction of 23 new school buildings in the regions of eastern Macedonia and Thrace, western Macedonia, Epirus and the Ionian islands.

Alogoskoufis pointed out that until now projects amounting to 2.4 billion euros have been subjected to the law 3389/2005. He added that this development shows the government's will for the utilisation of the new institution, the speedier implementation of infrastructures and the boosting of develop-ment and employment.

Coalition of the Left, Movements and Ecology (Synaspismos) party Political Bureau member and economic and social policy chief Panayiotis Lafazanis said that the inclusion of the public projects in the public and private joint ventures framework "delivers in an unacceptable way main utility infrastructures of the country, such as hospitals, police facilities, schools, prefectural administration offices, etc, to the most savage private profiteering and exploitation, with grave consequences for the public sector and the pockets of the Greek people."

[27] Arab businesses 'vehicle' for northern Greece businesses, deputy FinMin says

According to the deputy minister, the businesses of northern Greece have the possibility through cooperation with Arab businesses, like in the form of joint ventures, to constitute a "gateway" for Arab businesses to the markets of southeastern Europe.

The secretary general of the Arab-Hellenic Chamber of Commerce and Development (AEEEA), Dr. Elias Ghantous, in statements to reporters and during his address, presented the current economic and commercial developments and the business and investing climate prevailing in Arab countries.

He added that sectors that can attract Greek business interest are those of agriculture, tourism, industry and services, while Arab businesses focus their attention on the sector of transferring technology and know-how from Greek businesses.

[28] Employment minister orders audit at Civil Servants Auxiliary Insurance Fund

An Inspectors Committee of the Social Insurance General Secretariat has already been appointed to carry out the relevant audit. In parallel, Tsitouridis ordered an investigation to ascertain possible dealings between the Acropolis Stock Exchange AEPEY company with other insurance organisations as well.

During its special session on Thursday, the board of the Capital Market decided the temporary suspension of operations by the Acropolis Stock Exchange AEPEY company with regard to certain investments services, as well as the appointment of a temporary Commissioner.

A check carried out revealed that the company was acting against the interests of one of its clients, resulting in the latter incurring a considerable loss. The company from now on can only provide the services of receiving and transferring with regard to carrying out orders on shares and derivatives, following relevant permission by the temporary Commissioner.

According to an announcement by the Capital Market Com-mittee, the above, combined with previous serious violations of stock exchange legislation by the AEPEY in question render its operation dangerous for investors and the smooth operation of the stock exchange market.

[29] GDP increases 4.3% in 4Q 2006, yr/yr

The service said the hike was due to an increase in final demand by 5.2 percent.

Investments, compared between the fourth quarters of 2006 and 2005, also increased by 10.6 percent.

As far as trade is concerned, NSS said exports increased by 7.9 percent in 4Q 2006 compared with 4Q 2005.

Conversely, imports rose by 8.9 percent in 4Q when compared to 4Q 2005.

[30] Probank says net pre-tax earnings at 19 million euros, eyes bourse listing

The bank's board of directors also said it would propose to a general shareholders' assembly that a 0.13-euro per share dividend be paid out, a total of 7.38 million euros.

Pre-amortization and provisions results exceeded 40 million euros, as opposed to 28 million euros in 2005

The bank's management said that with the 2006 results it meets conditions for listing on the Athens Stock Exchange, adding that it will commence the process for such a listing, with a target of late 2007 or early 2008 for trading Probank shares on the bourse.

[31] EFG Eurobank eyes Cypriot market

Meanwhile, Eurobank announced on Wednesday the purchase of 99.34 percent of the Ukraine-based Universal Bank's shares, following the transaction's approval by Greek and Ukrainian regulatory authorities.

Universal Bank is a medium-sized bank active mainly in western Ukraine, with a network of 33 branches and 520 employees. The bank's assets totaled 88 million euros in 2006, with own capital at 12 million euros.

[32] Greek stocks slide 2.97 pct lower

All sector indices ended lower with Insurance (5.99 pct), Industrials (5.74 pct), Technology (5.68 pct) and Raw Materials (4.88 pct) suffering the heaviest losses of the day.

The FTSE/ASE-20 index for high capitalisation shares ended 3.02% down; the FTSE/ASE-40 for medium cap stocks 3.41% lower; and the FTSE/ASE-80 for small cap shares finished 3.13% down.

Karamolegos (4.71 pct), Xylemboria (PO) (4.08 pct) and CENTRIC (3.52 pct) were top gainers, while Alter (-19.82 pct), Tria Alfa (KO) (-19.38 pct) and Vivere (-12.63 pct) were top losers.

Broadly, decliners led advancers by 261 to 20 with another 26 issues remaining unchanged.

Sector indices ended as follows:

Insurance: -5.99%

Industrials: -5.74%

Commercial: -0.55%

Construction: -3.90%

Media: -2.64%

Oil & Gas: -1.71%

Personal & Household: +0.77%

Raw Materials: -4.88%

Travel & Leisure: -0.75%

Technology: -5.68%

Telecoms: -2.05%

Banks: -3.58%

Food & Beverages: -3.82%

Health: -1.16%

Utilities: -1.85%

Chemicals: -1.96%

Financial Services: -3.04%

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

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

Alpha Bank: 22.00

ATEbank: 3.80

Public Power Corp (PPC): 19.26

HBC Coca Cola: 27.90

Hellenic Petroleum: 10.20

Emporiki Bank: 21.04

National Bank of Greece: 37.66

EFG Eurobank Ergasias: 27.20

Intralot: 23.62

Cosmote: 22.00

OPAP: 26.80

OTE: 19.92

Titan Cement Company: 41.60

[33] Greek bond market closing report

The 10-year benchmark bond (July 20, 2016) was the most heavily traded security while the yield spread between the 10-year Greek and German bonds was 0.235 percent. The Greek bond yielded 4.18 pct and the German Bund 3.95 pct.

In the domestic interbank market, interest rates were mixed. National Bank's overnight rate eased to 3.57 pct, from 3.59 pct on Wednesday, the two-day rate was 3.57 pct, the one-month rate rose to 3.77 pct from 3.75 pct and the 12-month rate fell to 4.04 pct from 4.05 pct.

[34] Foreign Exchange Rates - Friday

U.S. dollar 1.333

Pound sterling 0.679

Danish kroner 7.510

Swedish kroner 9.351

Japanese yen 156.66

Swiss franc 1.622

Norwegian kroner 8.173

Cyprus pound 0.584

Canadian dollar 1.562

Australian dollar 1.694

General News

[35] Equality secretary general addresses UN session on state of women

Equality Secretary General Evgenia Tsoumani, addressing the 51st session of the Economic and Social Council on the State of Women at the UN's headquarters on Thursday, said that Greece has taken considerable steps towards safeguarding equality between women and men.

Tsoumani said that Greece shares the positions of the European Union, as they were presented earlier by the representative of Germany, stressing the "unbreakable bond" between equality and democracy.

She then outlined the four targets set by the government in the framework of strategic planning for the 2004-2008 period that are:combatting inequalities in the labour market, preventing and combatting family violence and prostitution, combatting stereotypes concerning the roles of the two genders through the educational process, with emphasis being placed on the first stage of education, and strengthening the participation of women in decision-making centres.

[36] Elaboration of national action plan for combating of narcotics

Constantopoulos said that in the near future the plan will be given for public consultation with the involved agencies, underlining the complexity of the matter.

[37] Slight increase of hashish cultivation in Greece, US report shows

Greece does not constitute a major country of production of illegal narcotic substances, even though there is a slight increase in the cultivation of hashish in the interior of the country, according to the US State Department's annual report regarding the Strategic Control of the International Trade of Narcotics.

The report said that cooperation between the United States and Greece for the combating of drug trafficking brought signi-ficant results in 2006.

[38] Sarbel to represent Greece with 'Geia Sou Maria' at 2007 Eurovision Song Contest

The 25-year-old Sarbel (pronounced Sharbel), a recent newcomer to the Greek musical scene, was chosen in the early hours of Thursday as Greece's entry in the 2007 Eurovision through televoting and a jury panel in Wednesday night's Greek National Final among the three contestants that made it to the final, winning out over well-loved veteran laika/pop/rock composer and singer Christos Dantis and his rock piece "No Madonna", and Tamta, another recent newcomer, with her tender ballad "With Love".

The multi-ethnic rhythmical Geia Sou Maria clinched the ticket to the Eurovision Song Contest with 39.69 percent, followed by 31.28 percent for No Madonna and 29.02 percent for With Love.

The Greek National Final was hosted by presenters Maria Bakodimou and Fotis Sergoulopoulos, while the jury panel included renowned Greek composer Mimis Plessas, Greek Radio (ERA) genera director and lyricist Antonis Andrikakis, composer Dimitris Contopoulos, magazine publisher Petros Costopoulos, tv show host Eleonora Meleti, and actress and former fashion model Rea Toutounzi.

Guest performers included DJ BoBo, who will represent Switzerland at this year's Eurovision, Cyprus' entry Evridiki and Dimitris Korgialas, as well as Mihail Traistariu, who placed 4th for Romania in last year's Eurovision Song Contest with the song "Tornero".

Greece's entry, Sarbel Michael, known professionally as simply Sarbel, is well known in Cyprus and Greece. He was born and raised in London, and is the son of a Greek Cypriot singer/bouzouki player, Elias Sarbel, and a Lebanese mother.

He studied music, voice, drama and performing arts at university while earlier, from the age of 5 to 16, he performed at the English National Opera and the Royal Opera House Covent Garden. He has recorded Tosca in English, as the shepherd boy. His family made frequent trips to Greece and Cyprus and, at the age of 18, he moved to the Greek island of Crete for his gap year, where he sang at the Heraklion Palladium.

Sarbel was discovered, still in Crete, three years later by Sony music, which signed him up on a 6-year recording contract. By the following year, the then 22-year-old Sarbel became an instant hit on the Greek, Cypriot and Arab music scene.

Geia Sou Maria composers Papaconstantionou and Englof have written several songs for Elena Paparizou, who won the Eurovision Song Contest in 2005, Greece's first-ever number one Eurovision placing, with the song "My Number One", which was composed by Sarbel's fellow-contestant Christos Dantis, with lyrics by Natalia Germanou.

[39] Total lunar eclipse to begin on Saturday night

The moon will be inside the earth's shadow for one hour, from roughly 1 a.m. to 2 a.m. early Sunday morning, with the phenomenon reaching its peak over Greece at 01.20:56 (23.20:56 GMT) on Sunday morning, March 4.

The eclipse will also visible in Europe, Africa, western Asia and partially visible from the rest of the planet.

Observation of lunar eclipses is perfectly safe with the naked eye as opposed to solar eclipses.

The next total lunar eclipse visible from Greece will take place on Feb. 21, 2008.

[40] ND offices in Chania, Crete attacked by youths

The president of the ND's Prefectural Committee, George Vourvahis, said that the youths broke down the door and caused damage to the interior of the offices, turning over desks, breaking ashtrays, writing slogans on the walls, throwing leaflets and bringing down portraits of the party's leaders.

They later tore three flags which were on the balcony and withdrew after they hanged a banner.

The youths also threw red paint against the political office of ND deputy Christos Markoyiannakis.

[41] Conscript arrested for disclosing classified military files

The case was brought to light by the General Army Staff office, which notified authorities.

Police seized two hard drives and moveable files after searching his residence.

Among others, the suspect allegedly uploaded files on mobilisation plans as well as the names and ranks of military officers.

[42] Tax assistance for US citizens residing in Greece

For appointments and general tax information, call the embassy at 210-720-2421 or 210-720-2423. For answers on specific tax questions, call the IRS office at the US embassy in Paris, France at 00331-43122555, Fax: 00331-43124752, E-mail: [email protected]

[43] Weather forecast: Local showers on Friday

[44] The Athens dailies at a glance

ADESMEFTOS TYPOS: "The lump-sum retirement benefit (efapax) for seamen increasing by 25 percent".

APOGEVMATINI: "(University) Entrants: The AEI (institutions of higher education) will determine the number - The education minister (Marietta Yiannakou) satisfied the demand of the academics".

AVGHI: "Carte blanche on the social insurance issue - They're opening and closing issue of retirement threshold".

AVRIANI: "The pharmaceutical industries have a free-for-all - 25 percent increases in (prices of) medicines of wide consumption".

CHORA: "The new prices for 749 medicines, to go into effect on Monday - Price fluctuations (increases/decreases) of 20-42 percent".

ELEFTHERI ORA: "One after the other, the University Schools make efforts to 'salvage' the (semester's) examinations period, putting an end to the takeovers".

ELEFTHEROS: "Voluntary exodus (early retirement) in DEKO (public utilities and organisations) and banks - OTE (Hellenic Telecommunications Organisation) has already opened up Pandora's box".

ELEFTHEROS TYPOS: "AEI entrants (number) via bargaining - Yiannakou took everyone by surprise with the amendment of the (draft) framework-law (on higher education)".

ELEFTHEROTYPIA: "Pay to get a (university) degree - Unbelievable proposal by the chairman of the Deans' council K. Bayiatis".

ESTIA: "Irresponsible demogogy by PASOK (main opposition party) - What it would have done if it was the government".

ETHNOS: "Fewer AEI-TEI entrants - Green light from Marietta for 'four-year planning' of cutbacks".

KATHIMERINI: "Strict message to NATO and Ankara - Interview with GEETHA chief Hinofotis on the Turkish disputations".

LOGOS: "The education community divided...before parliament over the framework-law - Yiannakou accepted deans' demand over the number of entrants".

NIKI: "High price virus in medicines - New increases as of Monday in prices of 866 medicines".

RIZOSPASTIS: "KKE backs the farmers' struggle - Papariga (KKE leader) tour of Thessaly".

TA NEA: "New cut in number of entrants - Ministry-academics bargaining with the new law".

TO VIMA: "Souflias warns: (Industrial toxic) Waste bomb threatens Greece".

VRADYNI: "Regulation/breather for thousands of insured (under social insurance funds)".

Cyprus Affairs

[45] Cyprus President: Turkish denial impedes the opening of Ledras Street

The Turkish occupying army's denial to withdraw its forces from the area and the Turkish Cypriot leadership's inability to impose such a withdrawal is the main but not the only impediment to the opening of a crossing point at Ledras Street, Cyprus President Tassos Papadopoulos said on Thursday.

Papadopoulos' remarks came one day after Turkish Cypriot leader Mehmet Ali Talat met EU enlargement Commissioner Olli Rehn, who, according to his spokesman, welcomed the occupying regime decision to remove a footbridge it erected illegally on Ledras Street.

''The main but not the only issue obstructing (the opening of the crossing point on Ledras) is the denial of the Turkish-occupying army to withdraw its forces from the area and the Turkish Cypriot leadership's inability to impose such a withdrawal, whether it desires it or not,'' Papadopoulos said speaking to the press.

The Cypriot president also pointed out that ''a measure described as establishing confidence, good relations and good will cannot lead to a source of friction, because I do not believe that the Greek Cypriots will be thrilled to cross and see Turkish occupying forces.''

Furthermore, responding to press reports about Wednesday's Rehn-Talat meeting, Government Spokesman Christodoulos Pashiardis said Thursday that ''Without demilitarization of the area, without the withdrawal of the Turkish occupying army for that particular crossing point and with the creation of conditions of safe passage in the vicinity by UNFICYP, the withdrawal of the well-known illegal bridge lacks substantive meaning and does not serve the desired aim.''

''The removal of the bridge was a mere gesture aimed at creating impressions, without content and which does not facilitate the implementation of our proposal for the opening of a crossing point on Ledras Street,'' he added.

Concluding, the Cypriot spokesman reiterated that if the conditions set by the Cypriot government are met, ''our side is ready to knock down within 24 hours the wall in front of the National Guard post.''

Cyprus, an EU member state has been divided since 1974 when Turkey invaded and occupied its northern third.

Currently there are five crossing points between the southern government-controlled areas of the Republic, where the legal government exercises its jurisdiction, and the northern Turkish-occupied north of the island where the government is prevented from exercising its jurisdiction because of the massive presence of the Turkish occupation troops.

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