Athens News Agency: Daily News Bulletin in English, 12-07-04

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

CONTENTS

[01] Manitakis on reforming public sector: The problem is not size but low efficiency

[02] PM orders abolition of ministry several special secretariats, salaried com't seats

[03] Task Force head says meeting with FinMin constructive

[04] Development Minister Hatzidakis holds talks with Task Force head

[05] Gov't policy debate starts on Friday

[06] PM must ask for vote of confidence within 15 days of swearing in

[07] Democratic Left calls for accession to agreement on direct bank recap

[08] Every effort being made to avert more sacrifices

[09] SYRIZA gov't 'monitoring' com'ts formed

[10] SYRIZA spokesman says memorandum policy extremely ruinous and dangerous

[11] Envoy conveys US support for government's reforms effort

[12] New FinMin to be sworn in on Thursday

[13] PASOK Nt'l Congress opens on Friday

[14] President Papoulias receives visiting Greek-Canadian supreme court judge

[15] Bulgarian President Plevneliev on two-day official visit to Greece

[16] President Papoulias delivers ceremonial swords to new Ensigns

[17] Ecumenical Patriarch wraps up tour of NW Greece

[18] Reichenbach: There are no easy solutions

[19] Alternate FinMin addresses Economist Con'f

[20] Development minister Hatzidakis says supporting liquidity main priority

[21] Deputy FM on new gov't commitments

[22] Venizelos: Greece must not become 'purgatory' of Eurozone failure

[23] Independent Greeks leader urges stable econ and tax environment to attract investments

[24] Dem.Ar calls for full separation of investment and commercial banking

[25] SYRIZA deputy on eurozone unemployment

[26] Annual summer sales to begin on July 16

[27] New National Bank CEO outlines strategy

[28] Stocks continue moving higher

[29] ADEX closing report

[30] Greek bond market closing report

[31] Foreign Exchange rates - Wednesday

[32] Police violence in Greece 'not just isolated incidents', Amnesty International report says

[33] Ex- football club owner Psomiadis' 2 children charged with money laundering

[34] Burglars break into jewelry shop in central Athens

[35] New arrests of foreign nationals at Araxos civilian airport

[36] The Tuesday edition of Athens' dailies at a glance

[01] Manitakis on reforming public sector: The problem is not size but low efficiency

He stressed that the main problem with Greece's public sector was not its size but the low quality and small number of public services that it offered.

"The number of employees and payroll cost does not diverge from the European average rate. The problem is low efficiency," he emphasised.

Manitakis noted that the bureaucratic burden on citizens and business was around 8 percent but the low quality of service provided in key areas, such as health and education, drove citizens to use the private sector. The same low quality was responsible for excluding weaker social groups from access to basic services, he added.

He noted that the huge volume of bureaucratic processes was absorbing the bulk of the government's few resources, adding that the ratio of inelastic to elastic spending in the public sector was three to one.

"As a result, in one excludes the funds of the National Strategic Reference Framework (NSRF), the margins for exercising developmental policy are extremely limited," he said.

The minister also referred to the increasing pressure on weak welfare, health and education services as a result of the persistent recession and the urgent need to create a network of services to serve as a safety net against poverty and social exclusion.

"The changes to the state are a one-way street," the minister underlined, "but cutbacks without a simultaneously radical overhaul of the public sector will lead to an impasse."

He emphasised that any restructuring of the public sector must achieve huge economies of scale and thus create surpluses that will boost business enterprise, original research and education. At the same time, he stressed that privatisations were necessary, as was the merger and abolition of services that were not useful to citizens and businesses in order to liberate state funding for services needed to enhance social cohesion.

The minister said that among the actions planned in collaboration with the EU Task Force and French government was an acceleration of processes for the evaluation of staff and structures in terms of quality, efficiency and how effective a service was offered to citizens and businesses. Also, an emphasis would be placed on simplifying procedures, restricting corruption and reducing the burden on the private sector in order to boost competitiveness.

In all this, Manitakis emphasised, human resources would be the key factor and driving force, with the success of the reform programme dependent on the performance of public-sector staff.

He emphasised that this could not be achieved in conditions of insecurity and drastic pay cuts that "undermined dignity".

[02] PM orders abolition of ministry several special secretariats, salaried com't seats

A statement issued by the prime minister's press office underlined that special secretariats deemed necessary will continue to operate, after being completely overhauled.

The prime minister's order will not apply to special secretariats, like the financial crimes squad SDOE, whose operation cannot be interrupted.

The statement underlined that in "this way, a considerable amount of money is saved for the benefit of taxpayers and the state mechanism is put in order."

The prime minister's decision was made after a relevant recommendation by Administrative Reform Minister Antonis Manitakis, according to AMNA reports.

[03] Task Force head says meeting with FinMin constructive

Asked about the state of the tax-receiving mechanism in the past months, Reichenbach replied that "we provided considerable assistance to the tax authorities and we see that there is an improvement and we are on the right path." He added, however, that "there is no technical assistance for the problem of liquidity." Also according to Reichenbach, negotiating with the troika is not the responsibility of the "Task Force", while terming the meeting with Stournaras "constructive" since the next steps in their cooperation were agreed.

On their part, Finance ministry circles also spoke of a constructive meeting. They said that fiscal adjustment and growth issues were raised and an exchange of views took place on the handling of malfunctions, mainly on the issue of the mechanism for the collection of revenues and of tax reform, as well as for the better control of the expenditures of the general governance. On the Greek side, Alternate Finance Minister Christos Staikouras and Deputy Finance Minister George Mavraganis were present at the meeting.

[04] Development Minister Hatzidakis holds talks with Task Force head

Speaking after the meeting, Hatzidakis said the discussion focused on three sectors. On the improvement of the business environment, the progress of ESPA and assistance in the sector of privatisations. On the question of ESPA, the talks focused on the issues of liquidity, the more active involvement of the European Investments Bank and the idea for the creation of a Greek Investment Fund. Also discussed were issues having to do with the speeding up and simplification of the procedures for the 181 flag projects as well as with the speeding up of the absorption of EU funds.

[05] Gov't policy debate starts on Friday

According to a statement by prime minister Antonis Samaras' office, on Wednesday the premier will sign the ministers' responsibilities given that the ministers' proposals on the sectors of their responsibility have been completed.

Moreover, the Presidential Decrees for the mergers, the re-establishments and the changes in ministries' names are ready.

[06] PM must ask for vote of confidence within 15 days of swearing in

According to article 84 of the Constitution, "the government has to ask for a vote of confidence in Parliament within 15 days of the swearing in of the prime minister."

For the record, Prime Minister Antonis Samaras was sworn in on June 20.

[07] Democratic Left calls for accession to agreement on direct bank recap

The party stressed that the national responsibility government is appearing at the meetings with the troika armed with the programme framework, which was unanimously shaped by the three party leaders.

[08] Every effort being made to avert more sacrifices

He said that the prime minister and the leaders of the two parties supporting his government were working out the policy platform with a full four-year term horizon, and discussion on the platform for a vote of confidence would begin in parliament either Thursday or Friday.

Asked on the coalition government's negotiation strategy with the Troika, he said alternative scenarios were being drafted. "We will do two things. We will present facts and figures that cannot be disputed...that prove the impasse of the policy currently being applied, especially with respect to the recession and unemployment, and with this data as the weapon and with the presentation of our alternative proposals, we believe we will succeed in a different path being approved," he said.

Kedikoglou opined that the proper preparation has been made by the government for the discussions with the EU/IMF troika, but noted that the situation is difficult. He added that this visit by the troika was something of a fact-finding mission in which they will record the current picture of the Greek economy and what the intentions and plans of the new government are.

[09] SYRIZA gov't 'monitoring' com'ts formed

A special committee to monitor Memorandum developments and legislative initiatives was also formed.

Three parliamentary spokesmen were appointed to specific sectors, namely, Panagiotis Lafazanis was assigned to the sectors of economy and justice; Dimitris Papadimoulis the sectors of trade, production, national defence and public order, and Panagiotis Kouroublis the social affairs sector.

[10] SYRIZA spokesman says memorandum policy extremely ruinous and dangerous

He made his statement with regard to statements by European officials and the government's stance and stressed that it has now been proved that the policy of the memorandum is "extremely ruinous and dangerous and its possible extension leads to disaster."

Skourletis stressed that the troika is arriving in the country in the midst of statements by European officials "making it clear that it will not discuss any kind of renegotiating."

[11] Envoy conveys US support for government's reforms effort

The envoy told reporters after the meeting that they discussed a broad range of issues of mutual interest concerning both bilateral and regional matters.

He said he conveyed Washington's support for the Greek government's reform work and expressed hope that this effort will continue.

[12] New FinMin to be sworn in on Thursday

Also, government spokesman Simos Kedikoglou will be sworn in as deputy minister of state, and Costas Tsiaras as deputy foreign minister.

[13] PASOK Nt'l Congress opens on Friday

Party leader Evangelos Venizelos is expected to present his plans for the reinstitution of the party.

[14] President Papoulias receives visiting Greek-Canadian supreme court judge

[15] Bulgarian President Plevneliev on two-day official visit to Greece

The Bulgarian president will be received officially at Herod Atticus by Papoulias and members of the government at 10:30 on Wednesday morning and immediately afterwards the two leaders will be holding a meeting at the Presidential Mansion and will be making statements to the press (11:45) at the end of their talks.?

Plevneliev will be meeting Parliament President Evangelos Meimarakis at noon, who will host a luncheon for him at the Dionysos restaurant at the Acropolis (13:00).

Afterwards the Bulgarian president will be given a guided tour of the Acropolis Museum and visit the Athens Town Hall in the afternoon, where mayor George Kaminis will give him the city's gold medal.

On Thursday morning the Bulgarian president will visit Archbishop of Athens and All Greece Ieronymos and then he will be departing for Thessaloniki where he will meet the city's mayor Yiannis Boutaris and businessmen of northern Greece, while he will be proclaimed an honourary lecturer of the Macedonia University before leaving for Sofia on Thursday evening.

[16] President Papoulias delivers ceremonial swords to new Ensigns

The oath was taken by 55 men and women Ensigns of whom one was from Mauritania, two from Jordan, two from Cameroon, one from Syria, two from Libya and two from Cyprus.

[17] Ecumenical Patriarch wraps up tour of NW Greece

Bartholomew spoke with Samaras on the phone last Sunday, expressing a conviction that the problems faced by the country "are difficult but not impossible to overcome".

The Ecumenical Patriarch used the same words at a northern Greece airport, upon his departure for Istanbul, wrapping up a seven-day tour of the western Macedonia region in northwest Greece.

The Patriarch said economic problems are not unique to Greece, stressing that "Europe and the whole world, even the United States which is regarded as a rich country, have their own economic problems. We Greeks should not be disappointed, we should have courage and pray, be united as a nation and everything will be fine. May God be with you."

Financial News

[18] Reichenbach: There are no easy solutions

He said that many measures have been taken by the EU to support Greece and solve the problem of access to funds. For that reason, the measures that the task force will propose in the following months will have to be materialised immediately. The task force chief said the privatisations are very important for Greece's economic future, and said he expected the new government to fulfill its commitments for the continuation of the reforms that will 'unlock' development.

Reichenbach set out the priorities as follows:

- Management of revenues. Over the past two years, he said, a joint effort was being made with the IMF for the collection of taxes, with the assistance of experts from Denmark, the Netherlands and France, while there was interest on the part of British and German technocrats, and he expressed hope that soon there would be agreement with Switzerland.

- Public sector. There are specific proposals by the OECD and by French experts for the creation of an interministerial structure for speedy decisions that are being examined by the Greek government.

- Reduction of the administrative burden by 25 percent in the coming years. Greece has signed a pact with the OECD for reduction of the administrative procedures in 13 sectors of the economy, in a 7-year programme aiming to reduce the administrative burden by 25 percent.

- Reduction of bureaucracy. Reichenbach said that it was important to replace the existing book-keeping code with a new framework.

- Simplification of the procedures for business start-up. Greece, he said, has made significant steps but is still behind with respect to global practices, and the task force is prepared to help Greece in this area.

- Control of the limitation of businesses for a more competitive Greece, in four sectors: construction, tourism, retail and wholesale. There is already cooperation among the staff of the Competitions Committee, the OECD and the Task Force for dealing with the various distortions in the retail market and, for this reason, an OECD team, in cooperation with the development ministry, will work in the next seven months for a quality control of legislation and to eliminate the basic obstacles.

- Improvement of exports. A report has been submitted in April on the administrative complexities, particularly at the borders and customs houses. The target is to reduce the permits and certifications from the hundreds required today to a few tens in the coming period. In that context, a large team of technocrats from the Netherlands will arrive within the month to provide advice for a better structure of exports.

[19] Alternate FinMin addresses Economist Con'f

Addressing the Economist Conference, he said "we should fully utilise the tendencies that are being formed," pointing out that "we can overcome the difficult phase we are going through with optimism and plan."

The alternate finance minister referred in detail to the present state of the economy, pointing out that the diversions observed in basic indices are very important. He also stressed that the implementation of a national strategic plan that will change the course of the country with minimal economic and social cost, as well as, the adoption of a culture of national understanding are necessary.

Staikouras said that the state should repay immediately its debts to the private sector that amount to 6.5 billion euros to reinforce market fluidity, underlining that 4 billion euros will be repaid by the end of the year.

Referring to the policy mix to be adopted by the government, he said that it will focus on public sector spending cuts, the implementation of the 1:5 hiring replacement ratio (and even the tougher 1:10), reduction of the number of general government and public sector organizations, reform of public utility companies, and well-planned social spending.

He said that stagnating reforms and privatisations should be implemented through the state property utilization programme.

Staikouras also announced structural and operational improvements in the State General Accounting Office.

[20] Development minister Hatzidakis says supporting liquidity main priority

"We must show that our commitment to go ahead with structural changes and reforms is strong and is being implemented," the minister said and explained that the target of liquidity will be achieved on the basis of five axes.

[21] Deputy FM on new gov't commitments

"The new government is determined to claim a considerable and positive role for Greece in Europe, in our neighbourhood and beyond it," he said.

[22] Venizelos: Greece must not become 'purgatory' of Eurozone failure

Venizelos, who heads one of the two junior parties in the coalition government, called for a change in the national and social way of thinking after the elections with the assistance of the political forces. He noted that the way the Greek people had cast their vote in the recent elections showed that they were against any unilateral actions and supported a revision of the more unfavourable terms of the bailout loan agreements in collaboration with Greece's EU partners.

PASOK's leader also stressed, once again, that Greece will fufil its commitments and added that the problem is at the heart of the economic programme. He once again supported extending the period of fiscal consolidation until 2017 but also allowing Greece, Portugal and Cyprus to benefit from decisions made at the recent EU summit for direct lending to banks for their recapitalisation.

He opposed a policy of reducing public-sector jobs and firing staff, with 150,000 scheduled for the current year, saying that it would be more effective to conduct an 'honest assessment' of public employees and services and make more effective use of public-sector staff and would lead to better fiscal results.

[23] Independent Greeks leader urges stable econ and tax environment to attract investments

Kammenos noted that Greece has essentially acted as the 'detonator' of the European debt crisis since 2009 and he was scathing in his criticism of former Greek premier George Papandreou and his government, saying that it had done its utmost to ensure that Greece "lost all that was most precious".

He accused Papandreou of succeeding in selling Greek credit default swaps at a time when he had already agreed a bailout for Greece with the IMF and of allowing his finance minister to tamper with the country's statistical figures in order to bring it into a more difficult position.

He was also harshly critical of Greece's current coalition government, saying that "precisely the same partners with a little of the Left thrown in" were doing nothing but make promises to all quarters to fulfil everything demanded of the country.

[24] Dem.Ar calls for full separation of investment and commercial banking

Euro-leftist Dem.Ar underlined that the separation of commercial and investment banking was imperative and noted that such measures "will reduce the fluctuations and instability of money markets, protecting the economy and the citizens from the intensity of financial crises".

[25] SYRIZA deputy on eurozone unemployment

Stratoulis said that according to official data, Greece has won a "silver medal" in the EU, "while according to the real data, in the winter, if the memorandum policies are not reversed, it will have secured a 'gold medal'."

Meeting between Athens mayor and Chinese community reps, China's envoy

The city of Athens and the local Chinese community expressed mutual desire to further strengthen relations, in a meeting held on Tuesday in the presence of China's ambassador Du Qiwen.

Representatives of the ethnic Chinese community underlined, in the meeting with Athens Mayor George Kaminis and city councilors, that they want to support the local economy by promoting the Greek tourism brand in China and by boosting olive oil and wine exports to their country.

The Chinese ambassador characterised the meeting as "historic", stressing that it was the first time the Athens city hall opened its doors to the representatives of the ethnic Chinese community. He underlined that the Chinese community wants the prosperity of the local community and economy and wishes to play a decisive role in forging closer relations between the two peoples.

[26] Annual summer sales to begin on July 16

Summer sales offer consumers the opportunity to purchase products at discount prices. In the ten days ahead of the formal opening of the summer sales, stores can make special offers.

[27] New National Bank CEO outlines strategy

Speaking to the bank's staff, Tourkolias said the main strategic would be a restructuring of operating costs, better exploitation of human resources in a stable and safe working environment.

"Challenges are big and problems often seem to be unsolvable. Within the new conditions created in Europe, our main goal will be to multiply any possibilities offered not only for the support of the Greek economy but to restart investment activity in the country -the only and necessary condition to exit the current crisis," National Bank's CEO said.

He noted that National Bank must shape a new relation with its customer base and the society in general.

"My expertise all those years in the bank makes me certain that all together we will achieve our goal," Tourkolias said.

[28] Stocks continue moving higher

The Big Cap index eased 0.07 pct and the Mid Cap index ended 0.71 pct lower. The Food (4.97 pct), Utilities (3.82 pct) and Commerce (1.94 pct) sectors scored the biggest percentage gains of the day, while Travel (2.74 pct), Financial Services (2.73 pct) and Banks (2.19 pct) suffered losses.

PPC (6.40 pct), Coca Cola 3E (4.96 pct), Metka (2.72 pct) and Folli Follie (1.96 pct) were top gainers among blue chip stocks, while MIG (4.37 pct), Eurobank (4.17 pct), Piraeus Bank (3.97pct) and OPAP (3.65 pct) were top losers.

Broadly, advancers led decliners by 63 to 51 with another 19 issues unchanged. HOL (20 pct), Hellenic Fish Farms (20 pct) and Neorio (19.70 pct) were top gainers, while AXON Holdings (20 pct), Yalco (19.73 pct) and Nutriart (19.70 pct) were top losers.

Sector indices ended as follows:

Industrials: +0.98%

Commercial: +1.94%

Construction: -0.48%

Oil & Gas: -0.33%

Personal & Household: -1.31%

Raw Materials: -0.26%

Travel & Leisure: -2.74%

Technology: +0.72%

Telecoms: Unchanged

Banks: -2.19%

Food & Beverages: +4.97%

Health: +0.39%

Utilities: +3.82%

Financial Services: -2.73%

The stocks with the highest turnover were OPAP, National Bank, Alpha Bank and HBC Coca Cola.

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

Alpha Bank: 01/01/17

Public Power Corp (PPC): 01/02/16

HBC Coca Cola: 14.80

Hellenic Petroleum: 01/04/89

National Bank of Greece: 01/01/39

EFG Eurobank Ergasias: 0.69

OPAP: 05/01/12

OTE: 01/02/00

Bank of Piraeus: 0.24

Titan: 13.97

[29] ADEX closing report

[30] Greek bond market closing report

In interbank markets, interest rates were mixed to lower. The 12-month rate was 1.21 pct, the six-month rate eased to 0.92 pct, the three-month rate was 0.65 pct and the one-month rate 0.37 pct.

[31] Foreign Exchange rates - Wednesday

U.S. Dollar 1276

Pound sterling 814

Danish kroner 7545

Swedish kroner 8861

Japanese yen 101.76

Swiss franc 1219

Norwegian kroner 7632

Canadian dollar 1297

Australian dollar 1244

General News

[32] Police violence in Greece 'not just isolated incidents', Amnesty International report says

The report was presented by AI in collaboration with the Hellenic Federation of Journalists' Unions (POESY) during a press conference at the Athens Journalists' Union (ESIEA) and concerns the non-governmental organisation's monitoring of policing in the country for the last 10 years until April 2012.

The report criticises the police for use of excessive force in several instances, including the liberal use of irritant chemical substances and flash-bang grenades during demonstrations in ways that violate international standards. There are also accusations of mistreatment during arrest and detention, of which migrants, asylum seekers and marginal groups such as Roma gypsies are frequent victims.

Lia Gogou, a researcher for AI in Greece and Cyprus, noted that there was no official mechanism in Greece to record attacks that had racist motives.

The head of the photo journalists' union Marios Lolos, who filed a report against MAT riot police after he was attacked while covering a demonstration in April 2012 and hospitalised with severe head injuries, reported that there were incidents of police violence targeting photojournalists at almost every demonstration, with 46 percent of photojournalists having been victims of police violence at some time.

According POESY President Giorgos Savvidis, journalists were increasingly the victims of rising police lawlessness, while ESIEA President Dimitris Trimis suggested that attacks on those working the media was a "state policy".

Amnesty International will hold meetings with Greek authorities in order to discuss the findings of the report and in suggestions to the justice ministry had proposed the creation of a truly independent body to investigate complaints, along the lines of a citizens' ombudsman.

[33] Ex- football club owner Psomiadis' 2 children charged with money laundering

Those arrested include Psomiadis' son and daughter and two first cousins, while an arrest warrant is still pending against another family member. All of the suspects, including Psomiadis, are accused of money laundering through tax evasion, following an investigation conducted by a first instance court prosecutor.

The suspects are also accused of defrauding millions of euros from AEK FC accounts in 2002. The case will be tried in court on November 21.

[34] Burglars break into jewelry shop in central Athens

[35] New arrests of foreign nationals at Araxos civilian airport

According to police, a 59-year-old Tunisian, a 24-year-old Moroccan and a 21-year-old Pakistani were arrested initially when the passport check ascertained that the 24-year-old possessed a travel document of the Italian authorities that was forged, while the other two attempted to travel with genuine documents of the French and Pakistani authorities respectively that belonged to third persons however.

Shortly afterwards a 26-year-old Nigerian was arrested when the check revealed that a visa of the French authorities attached to his passport was forged.

[36] The Tuesday edition of Athens' dailies at a glance

ADESMEFTOS TYPOS: "Neither new taxes nor salary cuts".

AVGHI: "Four conditions for recovery".

AVRIANI: "Prime Minister Antonis Samaras' aggressive plan with structural changes and privatisations".

ELEFTHEROS TYPOS: "Three-speed reserve labour instead of layoffs in public sector".

ESTIA: "Six months lost for the economy".

ETHNOS: "Free medicine to the ensured".

IMERISSIA: "Banking 'fever'."

KATHIMERINI: "In August the crucial negotiation".

LOGOS: "Red lines in the renegotiation".

NAFTEMPORIKI: "Preparation of Greek defence stance against the troika".

RIZOSPASTIS: "Action to safeguard the Health and against the tax robbery".

TA NEA: "No to layoffs and cuts".

VRADYNI: "Government, troika crash test on 23 burning issues".

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