Athens News Agency: Daily News Bulletin in English, 09-04-11

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

CONTENTS

[01] Government on PASOK motion over Siemens affair

[02] PASOK motions for parliamentary enquiry into Siemens scandal

[03] PASOK leader meets Archbishop

[04] Greece to host informal OSCE foreign ministers meeting in June

[05] Independent authorities submit annual reports to Parliament

[06] New car sales down 40.3 pct in March

[07] Three injured in vocational school shooting in Athens, gunman dies

[08] Body of Greek student killed in L'Aquila quake brought home

[09] PASOK condolences for quake victims in Italy

[10] "Moutzouris" train service starts again on April 11

[11] ESIEA board meets with Parliament president

[12] A/C system donated to Serbian Arts-Sciences Academy

[13] Photo exhibition on Balkans inaugurated in Belgrade

[14] Rescue operation under way for Polish mountaineers

[15] Large quantity of hashish seized at the borders with Albania

[16] Ferry engine catches fire off Kythnos, passengers safe

[17] Three armed robberies at supermarkets in Attica prefecture

[18] Banks targeted by vandals in flash attack

[19] Fire burns forestland in Peloponnese

[20] WWII naval mine destroyed by controlled explosion at Isthmia

[21] Cloudy, rainy on Saturday

[22] The Friday edition of Athens' dailies at a glance

[23] Christofias: Issues remain open regarding the discussion on EU matters

[24] Spokesman says Turkey must cooperate for Cyprus settlement

[25] Cyprus FM to meet US Secretary of State

[26] Belgian Ambassador: Treaty of guarantee ''needs to be reconsidered''

[27] BoG Gov in Cyprus Politics

[01] Government on PASOK motion over Siemens affair

"This is our standing political position," government spokesman Evangelos Antonaros stressed, pointing out that PASOK leader George Papandreou and his party had received the same reply when they had tabled motions for investigations related to the Siemens case before.

"As long as Justice is investigating the case in depth and uncovering illegal acts and guilty parties, this would mean a direct cover-up," he added.

"At this time when the investigation was in the final stages before completion, at the most crucial and delicate phase that involved pressing charges against specific persons, Papandreou has chosen to submit a proposal for an Examination Committee. What is PASOK afraid of that it attempts to prevent justice from doing its work?" Antonaros asked, adding that PASOK would receive its reply in accordance with Parliament rules.

Replying to Antonaros later on Friday, PASOK spokesman George Papaconstantinou said that the government spokesman was "trying to invent excuses to cover up the refusal of the ND government to agree to investigate major scandals."

Papaconstantinou rejected the government's reasoning, saying that the arguments about obstructing the task of justice "defied common sense" and also fully contradicted their own stance when they had agreed to a Parliamentary examination committee over the Vatopedi land-swaps affair, which had not interfered with justice in the slightest.

It was obvious that the government's main concern was to cover up all political responsibility for the scandals, he added.

[02] PASOK motions for parliamentary enquiry into Siemens scandal

In a motion signed by PASOK leader George Papandreou and the party's entire parliamentary group, the main opposition party calls for investigation of the case "on the basis of the new facts that have arisen following the government's last refusal to accept our previous proposal", with an investigation into the entire Siemens affair, so that parliament and the public can be informed of the truth, the responsibilities may be pinpointed and attributed, and so that proposals may be stipulated on the necessary guarantees for transparency.

The PASOK deputies further note in their motion that "the information coming to light on the 'political money' and bribery of government officials and others must be investigated".

"Besides, members of the government, MPs and political figures are said to be enjoying financial facilitation, gifts and various benefits from that company (Siemens)," the motion added.

The PASOK MPs also accused the government of "trying in every way to 'cover up' the scandal and obstruct its investigation by parliament", just as it did and was doing in the case of the telephone tappings, the kidnapping of the Pakistanis by foreign secret services with the government's tolerance, the looting of the social security funds' reserves with the structured bonds and with the collaboration of party and state officials, etc.

"And all this when parliament is the place where political responsibilities should be sought for all those possibly implicated n this murky case, regardless of what party they belong to," the motion said, and further charged that an unprecedented operation was in progress "for the manipulation of justice through its few perjurous functionaries".

[03] PASOK leader meets Archbishop

Papandreou stressed that the attacks were "unacceptable", especially in view of the upcoming Easter holiday.

"The discussion with the Archbishop was a useful opportunity to exchange views, in the framework of the discrete roles of Church and State, on the opportunity for cooperation in various sectors," PASOK's leader added.

He particularly emphasised the Church's work to alleviate poverty in this time of economic crisis, such as giving food aid, or its work with immigrants and drug addicts, noting that these were important fields of cooperation with the State.

Papandreou said that they had agreed to have further meetings, so that "through dialogue and understanding the necessary and proper solutions to current problems are found".

Archbishop Ieronymos thanked Papandreou for his visit and stressed the separate roles of Church and State, noting that there could be cooperation in the framework of this on matters of common interest, relating to ministering to people that were suffering.

Regarding the incendiary devices planted in churches the previous day, the Archbishop termed these a "fall or frivolity" on the part of those responsible.

"If they think it over, they will not do it again," he added.

[04] Greece to host informal OSCE foreign ministers meeting in June

The meeting is scheduled to take place on the Greek island of Corfu on June 27-28.

The announcement said that the organisation of this meeting was among topics discussed on the phone on Thursday by Foreign Minister Dora Bakoyannis and her Russian counterpart Sergey Lavrov.

[05] Independent authorities submit annual reports to Parliament

These included the Hellenic Capital Market Commission (HCMC), the Hellenic Deposit and Investment Guarantee Fund and the Hellenic Telecommunications and Post Commission (EETT).

HCMC Chairman Alexios Pilavios accompanied his report with an optimistic forecast that the global economy would show the first signs of recovery within 2009, marking the start of a recovery for Greece's economy as well.

"Things are not as bad as they are presented in the news, therefore we must remain sanguine," Pilavios told Sioufas.

Bank of Greece Vice-President Eleni Dendrinou-Louri, head of the Deposit and Investment Guarantee Fund, said that the fund had 1.6 billion at its disposal to guarantee the deposits of each depositor to the sum of 100,000 euros.

"There is of course the political pledge to cover all deposits but the specialised measure based on the European directive is the one I just mentioned, a sum we have chosen that is double the European limit," she added, noting that the fund was ready if the need ever arose.

EETT chairman Nikitas Alexandridis briefed Sioufas on the progress made in the spread of broadband, which was helping bridge the "digital gap" between Greece and the rest of Europe.

Financial News

[06] New car sales down 40.3 pct in March

Toyota retain the top position in the Greek market with 1,582 sales (down 25.8 pct from 2008), followed by VW and Ford in the second and third place (down 32.6 pct and 3.3 pct, respectively). Hyundai (44.3 pct), Nissan (50.6 pct), Suzuki (47 pct), Skoda (49.5 pct), Seat (66 pct), Kia (60.2 pct), Mazda (54.7 pct), Citroen (65.9 pct), BMW (72.7 pct), Mini (48 pct), Lexus (59 pct), Porsche (50 pct) suffered the heaviest percentage losses in sales in March, while Renault and Alfa Romeo were top gainers both in March and in the first quarter of 2009.

General News

[07] Three injured in vocational school shooting in Athens, gunman dies

A chilling note was found in the gunman's schoolbag, stating his intent to shoot anyone he saw in front of him and then commit suicide.

"I have no reason to live. I am too selfish to die and allow you live. Before I die I will deprive you of all that you hold dear. I have no respect for human life. Whoever crosses my path on the 10th of April will die without distinction. Up until now I have not known anything else but rejection. I have known only one person that was worthwhile as a human being, and with whom I thought I was in love. I feel so bad that she rejected me and I hope that she will change her opinion of with after what I do on Friday," the note read.

Following an initial investigation, police believe the perpetrator pulled out two handguns and shot at the 18-year-old at random, without knowing his victim. He later fired at and wounded two workers on a sidewalk construction crew. Police found his schoolbag containing the two guns, bullets, the note and a knife next to the fatally wounded 19-year-old.

The three injured victims and the gunman were rushed to the Nikaia General state Hospital.

The 18-year-old victim was seriously wounded in the chest, while the two employees were not in a life-threatening condition.

Reactions

Employment Minister Fani Palli-Petralia, whose portfolio includes the Manpower Employment Organisation (OAED), later visited the facility, where she noted:

"I want to express my grief over the bloody incident at the OAED vocational training school on Petrou Ralli street. Such phenomena are unfamiliar and alien to our country and the student community, and do not reflect the Greek youth," Petralia said during a discussion in Parliament on an unrelated issue.

Main opposition PASOK spokesman George Papaconstantinou on Friday described as "unprecedented" and "shocking" the shooting incident at a Manpower Employment Organisation (OAED) vocational training school earlier that morning.

On his part, Coalition of the Radical Left (SYRIZA) parliamentary group leader Alekos Alavanos expressed SYRIZA's deep grief over the incident. He added that SYRIZA disagreed, however, with Petralia's statement that the incident was 'alien' to Greece because "everything 'alien' also becomes 'domestic', unfortunately".

[08] Body of Greek student killed in L'Aquila quake brought home

Vassilis Koufolias, an engineering student, was trapped in the ruins of the four-storey apartment building he was living in with his sister, Dionyssia, also a student, had initially been located on Monday and was in contact with rescuers trying to extricate him and other survivors, but his body was among others recovered on Tuesday by emergency units. His sister, who suffered several fractures when the building collapsed in the early hours of Monday, was hospitalised in a nearby town. Four other Greek students were also injured and hospitalised.

Koufolias' body was taken to Rome's F�umicino Airport, accompanied by his parents and Greek embassy representatives, and arrived at Athens' 'Eleftherios Venizelos' International Airport (AIA) at 11:30 p.m. on an Aegean Airlines airbus from Rome, together with his mother and father, who will return to Italy after the funeral where Dionyssia, who was in the apartment with her brother when the building collapsed, was still in hospital after surgery for a shoulder fracture.

[09] PASOK condolences for quake victims in Italy

As regards the open invitation by PASOK for European Parliament election candidates, he underlined that "citizen participation is by definition a political process."

On the criteria to be used, he commented that they will ensure that the best will be selected.

[10] "Moutzouris" train service starts again on April 11

On October 12, 1895 "Moutzouris" made its inaugural journey from Volos to Ano Lechonia and 8 years later the extension from Ano Lechonia to Milies was opened and ran without an interruption until 1971 when automobiles took over as the preferred means of transportation.

During WWII, the Germans used the train for their transportation and when they withdrew blew up part of the railway network that was later restored.

In 1995 the train was put again in operation for tourism reasons. The cars used are the original ones, while the old steam engines, named "Milies" and "Jason", were also used at first but in 2000 they were replaced by diesel-powered engines for faster and safer journeys.

The special train service starts in April each year and makes the roughly 90-minute trip from Ano Lechonia to Milies passing through a region of majestic natural beauty.

Beginning on April 11 the train will run on weekends while the option of leasing will be available to associations, tourist groups or even embassies. Service will be on a daily basis in July and August, to be interrupted in October for the winter season due to weather conditions and for maintenance purposes.

[11] ESIEA board meets with Parliament president

[12] A/C system donated to Serbian Arts-Sciences Academy

An air conditioning system funded by the Hellenic Plan for the Economic Reconstruction of the Balkans (HIPERB) programme was delivered to the Serbian Academy of Sciences and Arts (SANU) on Friday.

The 45,000-euro donation will be used for the preservation of artworks kept at the academy.

Academy General Secretary Dimitrije Stefanovic thanked Athens for its contribution to the technical infrastructure of the institution and cited other HIPERB funded projects such as the restoration of the Serbian Orthodox Hilandariou Monastery on Mt. Athos and the Zica Monastery in central Serbia.

On his part, Greek ambassador to Belgrade Demosthenis Stoidis underlined that "Greece will continue to support such actions."

[13] Photo exhibition on Balkans inaugurated in Belgrade

The photo exhibition titled "Light and shadows in the Balkans" was inaugurated at the Hellenic Culture Foundation here on Thursday night.

Participating in the exhibition are Stelios Efstathopoulos (Greece), Nina Nikolova (Bulgaria), Bevis Fousa (Albania), Stanko Abadzic (Croatia), Imre Sabo (Serbia), Virgil Mlesnica (Romania), Timurtas Onan (Turkey) and Milomir Kovacevic (Bosnia). Each of them is presenting 10 black and white photos depicting the daily life of people in the Balkans.

The exhibition will continue until May 24.

[14] Rescue operation under way for Polish mountaineers

The woman was injured in a leg during mountaineering in a rocky and misty region and with low temperatures, making walking impossible for her.

The fire brigade launched an immediate operation to rescue the couple, backed by a group of Red Cross volunteers and a squad of the EMAK rescue service.

Rescuers are expected to reach the area after 9 in the evening, while the Polish couple has suitable equipment and is located at a safe spot.

[15] Large quantity of hashish seized at the borders with Albania

A total of 184 kg and 765 grams of cannabis in nine bags were found by border guards in the process of chasing unidentified individuals who were spotted moving suspiciously at the borders with Albania. The suspects managed to flee by crossing over into Albanian territory.

[16] Ferry engine catches fire off Kythnos, passengers safe

One of the ferry's four main engines caught fire as the high speed vessel was sailing east of Kythnos, but was quickly extinguished by the crew in the engine room, and the ferry, at a reduced speed with its three other engines working, sailed safely to port in nearby Serifos island where it will undergo inspection.

The ferry, the "Highspeed 5", which started carrying out the route just on Thursday, set sail at 7:30 a.m. on Friday from Piraeus for the Paros, Naxos, Ios and Santorini islands route.

The "Highspeed 4" was immediately dispatched from Piraeus to Serifos to pick up the 512 passengers and take them to their destinations.

[17] Three armed robberies at supermarkets in Attica prefecture

One robbery took place at the Carrefour supermarket in the Athens district of Kolonos at 8:45, when four men armed with Kalashnikov weapons snatched an unspecified amount of money. Police patrol cars arrived at the scene in time and a shootout ensued with the robbers, who succeeded in escaping without any injuries being reported.

Two other armed robberies occurred at Sklavenitis supermarkets at 8:25 and 9, in the Athens districts of Halandri and Nea Ionia. The robbers seized unknown amounts of money and made their getaway.

[18] Banks targeted by vandals in flash attack

The culprits used stones and other objects to smash the banks' glass facades and immediately fled the scene.

[19] Fire burns forestland in Peloponnese

[20] WWII naval mine destroyed by controlled explosion at Isthmia

The fisherman had contacted the Coast Guard, and the naval mine was destroyed through a controlled explosion.

Weather Forecast

[21] Cloudy, rainy on Saturday

[22] The Friday edition of Athens' dailies at a glance

ADESMEFTOS TYPOS: "Generous raises in public sector pensions".

APOGEVMATINI: "Anarchists target churches - Organised series of attacks on churches in Athens, Piraeus and Thessaloniki".

AVGHI: "Government 'lost' in scandals".

AVRIANI: "Terror in the political system after SIEMENS case investigator summons those implicated in the major scandal for testimony".

CHORA: "Menu with Greek flavor - Sarkozy fully supports Karamanlis".

ELEFTHEROS: "Government's MPs sound warning bell to PM - They point at high-profile ministers".

ELEFTHEROS TYPOS: "Pavlidis and Siemens a 'molotov cocktail' - Scandal talk sets fire to the pre-electoral scene".

ELEFTHEROTYPIA: "The box of scandals opens again - Main opposition PASOK calls for a parliamentary preliminary investigation committee into the Siemens case".

ESTIA: "A change in psychology is imperative - The government must stop grumbling".

ETHNOS: "Pavlidis in a...Siemens freezer - Government brings the SIEMENS scandal back to the forefront to turn public attention away from the Pavlidis affair".

KATHIMERINI: "Course to euroelections under the shadow of scandals".

LOGOS: "New case file on Pavlidis submitted to parliament - New clues are complicating the case".

NIKI: "New 'storm winds' for Pavlidis - Second case file submitted to parliament on coastal shipping".

RIZOSPASTIS: "No more lost time, trust and vote Communist Party - When the peoples want to, they can do miracles".

TA NEA: "Karamanlis begs Sarkozy for a life raft, in exchange for (Greece's purchase of French-made) frigates and aircraft".

TO VIMA: "Something's going on in the Athens Stock Market with banks - Stocks and transactions are spiraling".

VRADYNI: "Unidentified individuals target churches - They do not respect anything".

Cyprus Affairs

[23] Christofias: Issues remain open regarding the discussion on EU matters

Cyprus President Demetris Christofias said here, Friday, that a convergence of views has been achieved on many issues regarding European Union matters, in the context of the ongoing UN-led direct negotiations, while at the same time there are basic issues which are still open.

In statements after his 25th meeting with Turkish Cypriot leader Mehmet Ali Talat, he described Friday's meeting as good, adding that during the next meeting to be held Wednesday 15, economic matters will be discussed.

Asked whether the remaining open issues are more important than those already agreed, Christofias said that "all issues have their significance, is a package which concerns issues of the European Union and the participation of Cyprus in the Union''.

''Obviously each one (of the issues) has its own significance but the most serious issue is the fact that we insist on Protocol 10 of the Accession Agreement concerning the implementation of the acquis communautaire in all areas of the Republic after the solution. The Turkish Cypriots have a different view. They want many deviations from the acquis. We consider that if there is anything, it should be short transitional periods'', he said.

Invited to comment on Turkish President's statement about a gesture on the Cyprus problem, President Christofias said: ''I do not know if Turkey wants to bring more troops and illegal settlers to Cyprus''.

He added that the Annan Plan was rejected by the Cypriot people, because it was unfair. ''Turkey then - let me say - imposed it and the General Secretary accepted the demands of Turkey''.

What is required by Turkey, President Christofias said, is to respect the independence, sovereignty and territorial integrity of the Republic of Cyprus.

Asked if the opening of Limnitis was discussed in today's meeting, President Christofias said that in every meeting he raises this issue.

''I want to give a friendly answer to those who say that Ledras street must close. These positions are not constructive. Ledras street is something we achieved''.

He said that the efforts for the opening of Limnitis will continue. Asked whether the issue of Famagusta was discussed, Christofias said that he did not promise to put such an issue to the T/C leader. ''I might put it elsewhere'', he concluded.

Christofias and Talat have been engaged in direct negotiations since September last year, with a view to reach a settlement of the problem of Cyprus, divided since 1974, when Turkish troops invaded the island and occupied 37% of its territory.

Progress being made in Cyprus talks, Downer says

More has been agreed and written down between the two parties in Cyprus than at any time since 1974, UN Secretary General's Special Adviser for Cyprus Alexander Downer has said.

Speaking Friday at the end of the latest round of talks between Cyprus President Demetris Christofias and Turkish Cypriot leader Mehmet Ali Talat, in the United Nations Protected Area of Nicosia, Downer said "there is very strong support for the process in the international community, along with high expectations for success".

He added that it was crucial "the good momentum in the negotiations be maintained".

He also announced a number of Confidence Building Measures the two leaders agreed on to be immediately implemented. Downer said that the first measure was the crossing of ambulances in emergency cases that will come in effect from next week.

He announced that "the committee on communications and liaison for crime and criminal matters will come into force. The Advisory Board has been established on the preservation of cultural heritage. And the project which is funded by UNDP to deal with water-saving measures is proceeding as well," he added.

"So", Downer pointed out, "a number of the confidence-building measures have not just been agreed on but it has been agreed that they will proceed to implement those particular confidence-building measures".

Speaking after Friday's meeting Downer said that "the two leaders had a long tete-a-tete meeting. During that their representatives and officials discussed further discussions on some technical aspects of the EU issue and it was then when the leaders took the opportunity to go for a walk".

Answering a question Downer said that there are no fixed timelines regarding the direct negotiations. "Naturally enough, it is important that this process has appropriate momentum and that it moves forward. We have now completed, in what is sometimes called the first reading, the EU chapter, and that has been a very good discussion. The economy is going to be the next issue to be discussed and there are two more chapters after that. There is, of course, the issue of territory and the issue of security".

Referring to the procedure to be followed in the near future, he said that "when the leaders have reached the end of the first reading, there will be sort of a second round process and that will inevitably move towards a third round process; a give-and-take process. But there will be give-and-take all the way through".

He clarified that "there has actually been through the first round (give-and-take process), including during the course of today (Friday). So there has been a lot of that. So it's important not to oversimplify the process, but it is also important not to impose any timelines on it".

Downer added that "it is crucial that the momentum be maintained and I think there is good momentum. It is important to remember this: more has been agreed and written down - agreed between the two parties and written down - than at any time since 1974. So, progress is gradually been made".

He went on to say that "this is a very big negotiation. A longstanding issue and inevitably it's going to be pretty difficult. We have had a large number of meetings of the leaders. That's good. They have made real progress, they have put more on paper now of an agreed nature than at any time since 1974. Of course, you know the Annan Plan had a lot of words in it but it wasn't agreed in the sense that this is agreed material between the two leaders and that, I think, is pretty encouraging".

Furthermore, he pointed out that there is an expectation from the international community "that this time the two leaders can finally reach agreement. There is expectation and there is very strong support for this process coming from the Secretary-General of the United Nations, and, as you have seen, from people like the new President of the United States, President Obama, who has expressed his strong support for the process, and right across the board from Russia and China and so on. All of that is very encouraging, but it's not just a question of support: it's a question of expectation and there is an expectation that this process can be successful," the UN official concluded.

[24] Spokesman says Turkey must cooperate for Cyprus settlement

Government Spokesman Stephanos Stephanou said on Friday that Turkey must cooperate for a just, viable and functional solution of the Cyprus problem, primarily to the benefit of the people of Cyprus.

Commenting on remarks by Turkish President Abdullah Gul that if there is mobility around the Cyprus problem it should not be generated by

Turkey, Stephanou said that ''Turkey, meeting the obligations it has undertaken towards the EU and the Republic of Cyprus, should cooperate and open its ports and airports, as obliged to do, and implemented everything else the EU has set out.''

He added that the first step Turkey should take is ''to let the Turkish Cypriot community cooperate with us, so that on the basis of what we have agreed, namely the bizonal bicommunal federation, we can reach a solution and at the same time move in the direction of a comprehensive settlement.''

''If Turkey does not favour a bizonal bicommunal federation solution and with the decisive role it has does not give room for such negotiations and developments that will lead to such a solution, then we will have serious difficulties,'' he pointed out.

He also said that Turkey's role in the occupied areas is ''catalytic and decisive,'' adding that ''Turkey's cooperation is necessary if we want to reach a solution of the Cyprus problem.''

Commenting on the call by UN Secretary General Ban Ki Moon for flexibility from both communities on the island, Stephanou said ''we are negotiating on the basis of UN resolutions, the principles of international and European law, on the basis of what the two communities have agreed on and, focusing on these principles, during the negotiations, of course we are showing the necessary flexibility.''

Stephanou said, "we are waiting from the others to be flexible and show the same will as the President of the Republic in order to reach a solution.''

Replying to questions, Stephanou said the process agreed on is one without strict timeframes or arbitration, with an aim to reach a bizonal bicommunal federation with political equality, as determined by UN resolutions, with a single sovereignty, a single citizenship and a single international identity.

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

[25] Cyprus FM to meet US Secretary of State

Cyprus Foreign Minister Marcos Kyprianou will hold a meeting with US Secretary of State Hillary Rodham Clinton, later this month.

In statements to CNA on Friday, the Director of Foreign Minister's Office Cornilios Corniliou, said that the meeting will take place at the US State Department on April 20.

[26] Belgian Ambassador: Treaty of guarantee ''needs to be reconsidered''

Belgium's Ambassador to Cyprus Guy Sevrin said on Friday that Cyprus treaty of guarantee should be reconsidered in the context of a settlement of the Cyprus problem, adding that the EU should assume its responsibilities on the issue.

Sevrin met today with the President of the Social democrats Movement Giannakis Omirou, who briefed him on the latest developments with regard to the Cyprus problem and particularly the negotiations that commenced last September.

In statements after the meeting, Omirou said he is pessimistic regarding the future prospects of the current negotiations, due to the Turkish positions as submitted on the negotiating table.

Omirou also made special reference to Turkish side's insistence to the continuation of the treaty of guarantee, noting that the EU, of which Cyprus is a member-state, can provide a secure context of guarantee for any solution to the Cyprus problem.

In his statements, Sevrin said he started meetings with government and party officials ''in order to get a good picture of the Cyprus issue and all other aspects affecting Cyprus because next year Belgium will have the EU presidency, second half of 2010.''

''I wish to prepare it very well in order to be helpful to offer the best possible contacts between Brussels and Cyprus and in order to put the Cyprus issue a bit higher on the agenda,'' the Belgian diplomat added, noting ''I think it needs more international attention and I think that would be helpful in creating good conditions for a solution that I hope will come in near future.''

Asked whether the EU could provide a context for guarantying a reunified Cyprus, Sevrin said, ''the guarantees of 1960 at one time need to be reconsidered.''

Recalling that two of the guarantors (the UK and Greece) are EU member-states, Sevrin said ''indeed we should look in the context of this negotiations talks and in the framework of a final solution how we can deal with this issue''.

He also said that perhaps, as Omirou said, ''one possibility would be to have Europe as a guarantor of the stability of the island.''

''The whole of the island is part of Europe and Europe has to take its responsibility in regard to guarantees,'' he concluded.

Under the 1960 Treaty of Guarantee, the UK, Turkey and Greece ''undertake to guarantee the independence, territorial integrity, security of the Republic of Cyprus as well as well as the state of affairs established by the basic articles of its constitution.''

Cyprus, an EU member state since May 2004, has been divided when Turkey invaded and occupied 37 per cent of its territory.

[27] BoG Gov in Cyprus

Visiting Bank of Greece Gov. George Provopoulos on Friday touched on the course of the economies in Greece and Cyprus, during a meeting here with Cypriot Finance Minister Charilaos Stavrakis.

In statements afterwards they underlined that the banking sector in both countries is in a very good state.

Provopoulos said interest rates in Cyprus should drop and be harmonised with low interests in Euro-zone, while speaking to the Cyprus Chamber of Commerce and Industry he underlined that the decline of loan interest rates helps the real economy, something that the domestic banking sector will have to realize.

Referring to the tendency recorded in Greece and Cyprus to raise bank deposit interest rates, he stated "this was a meaningless and fruitless war, which proved to be detrimental to the banks themselves. The banks, in essence, are at war with themselves by increasing the cost of money they are taking from the depositors."

Provopoulos stated that this problem will be eventually overcome and stressed that "cheap money benefits the economy".

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