Athens News Agency: Daily News Bulletin in English, 16-05-06

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

CONTENTS

[01] Greek public debt sustainability to be discussed at Eurogroup

[02] The government insists on July agreement, State Min Pappas says

[03] Parliament to discuss and vote on pension-taxation reforms over weekend

[04] Social security and tax reform bills secure pensions, protects the weak, say gov't sources

[05] Pension reforms are based on the principles of fairness and justice, Labour Min Katrougalos says

[06] New Democracy will not vote for the measures submitted to Parliament, its spokesman says

[07] Weekend vote on pension-taxation bill 'undisguised authoritarianism' says KKE's Koutsoumbas

[08] Trade unions announce general strikes from Friday against planned pension and tax reforms

[09] Journalists to join general 48-hour strike on Friday and Saturday

[10] Roadblocks Committee urges farmers to join protest rally against omnibus bill on Saturday

[11] Commission proposes 6-month extension of border controls within Schengen

[12] Merkel says will do all she can to avoid border closures

[13] Dublin system doesn't work because frontline member-states have been left alone, says Timmermans

[14] President Pavlopoulos discusses migration with head of MPI Europe

[15] Idomeni camp will be dismantled, Migration Minister Mouzalas tells ANA-MPA

[16] Government VP says rail freight services in Idomeni to be restored soon

[17] 53,900 refugees and migrants in Greece on Thursday

[18] PM Alexis Tsipras to address meeting of SYRIZA lawmakers on Friday

[19] Foreign ministry welcomes restoring of ceasefire agreement in Syria

[20] Turkey must resolve its problems via diplomatic avenues, Dep. FM Mardas says

[21] ECB lowers borrowing ceiling for Greek banks by 300 mln eurps

[22] Government plans to vote new bill on growth by end of May, says investment official

[23] Greek economic sentiment index unchanged in April

[24] Papastratos unveils new production line

[25] Retail stores to remain closed on May 8, unions say

[26] Greek stocks end strongly higher

[27] Greek bond market closing report

[28] ADEX closing report

[29] ND leader praises work for Opera House, library at Stavros Niarchos Foundation Cultural Center

[30] Nearly 1,700 returned to native countries from Greece in April, police report

[31] About 80 refugees protest against closed borders at Greece-FYROM buffer zone

[32] The Thursday edition of Athens' newspapers at a glance Politics

[01] Greek public debt sustainability to be discussed at Eurogroup

According to the main points of the agenda, the Eurogroup will hold an emergency meeting on Monday in Brussels to discuss the progress of Greece's macroeconomic adjustment program.

Discussions will focus on the comprehensive package of policy reforms and the sustainability of Greece's public debt. "Both issues must be discussed in order to conclude the first program review and disburse further financial aid to Greece," according to the statement of the Eurogroup.

[02] The government insists on July agreement, State Min Pappas says

Referring to the negotiations on the Greek program review, Pappas noted that the doomsdays have been proven wrong.

On the contingent measures demanded by the IMF, he said: "Contingent measures are demanded only by those who refuse to accept that we did better that it was expected to ... All sides wish to conclude the negotiations and the program review ... Those who do not wish to do so, it is because they have political party interests."

Pappas also said that the auction for TV licences will begin early next week and the interested parties can submit their applications within 45 days.

Each of the four TV licenses which will be sold to private media channels in Greece will be auctioned at a starting price of three million euros, according to a joint ministerial decision.

The auction concerns the sale of four licenses to free, terrestrial, nationwide, digital content providers who will broadcast a general information program athigh-definition.

[03] Parliament to discuss and vote on pension-taxation reforms over weekend

The government's proposal was approved by majority at the Conference of Parliament Presidents on Thursday afternoon, over the objections of all opposition parties.

Announcing the decision, Parliament President Nikos Voutsis denied that passing the bill before Monday was a "prerequisite" demanded by the creditors, adding that it was more a "tool" that would strengthen the Greek government's position at the Eurogroup. He pointed out that the bill was a proposal made by the government, which supported the bill's essential elements.

[04] Social security and tax reform bills secure pensions, protects the weak, say gov't sources

"The government achieved the conclusion of the negotiations with the institutions on the targets of the agreement signed last July, with a reform that fully secures pensions, protects the weak, distributes tax and social security contribution burdens in a fairer and proportional way and ensures the sustainability of the social security system," the sources said.

They also added this reform is the opposite of those brought forward by the coalition government of New Democracy and PASOK which took for granted a horizontal cut of pensions, a zero-deficit clause for supplementary pensions, the abolition of the tax-free ceiling and the burdening - once more - of the weaker tax payers who shouldered the huge weight of the economic crisis these past years.

[05] Pension reforms are based on the principles of fairness and justice, Labour Min Katrougalos says

The study refers to the main pension funds of the private and public sector, that is 90 percent of the social security system.

Katrougalos underlined that the pension reforms are based on the principles of fairness and justice and protect pensioners.

[06] New Democracy will not vote for the measures submitted to Parliament, its spokesman says

Koumoutsakos noted that the government has led the country to a zero point while accusing it of focusing the public debate on the 3.6 billion euro measures and avoiding telling citizens that the total cost will be over 12 billion euros. "Every citizen will have to pay 60 percent of his already reduced income to the state," he said.

Regarding the IMF demands, he said that they are a result of the government's lack of credibility and wrong tactics during the negotiation.

When asked about the measures the government will submit to Parliament, he cleared out that New Democracy will not vote for them. He explained that "the government's policy, the delays and the postponement of decisions have led the government and the country to a dilemma: they have either to compromise and accept onerous measures or proceed with a disastrous rupture with Europe."

Koumoutsakos underlined that the main opposition will not get involved in any of these two dilemmas.

On the social security reforms, he said that New Democracy's position is stable: it refuses to vote for a bill that is opposed to growth.

[07] Weekend vote on pension-taxation bill 'undisguised authoritarianism' says KKE's Koutsoumbas

"The SYRIZA-ANEL government fears the people's fury and outrage. They go beyond all boundaries of political sordidness. They are arranging the vote on the anti-popular pension and taxation package and everything else agreed with the quartet, without warning, over the weekend," he noted.

It also proved that the recovery, debt settlement and everything else now promised, this time by the Tsipras government, to sugar the pill of the anti-popular measures "called only for new barbarous measures against the people, with no end date," Koutsoumbas added.

[08] Trade unions announce general strikes from Friday against planned pension and tax reforms

GSEE announced a 48-hour general strike on Friday and Saturday, accusing the government of a carrying out a "parliamentary coup" through its sudden decision to bring forward the debate on the draft bill forward to the weekend using fast-track procedures. The union had already announced a 24-hour general strike and morning rally in Athens' Klafthmonos Square on May 8 - a designated Sunday opening day for shops - to mark Labour Day.

A GSEE announcement said the planned Labour Day rallies will become central trade union strike rallies, urging workers to participate in force and the opposition parties to condemn the decision to bring forward the vote.

ADEDY will also strike on the same days, alongside GSEE, urging all its members to oppose the new measures that include VAT hikes, higher taxes on fuel, alcohol and tobacco and additional pension cuts.

The strike action by the two umbrella trade union organisations, which represent the majority of private and public-sector workers in Greece, will be joined by all categories of Greek seamen, whose union federation PNO on Thursday announced a four-day strike starting at 6:00 on Friday until 6:00 on Tuesday, May 10. The strike is expected to affect Greek ferry connections and the return of many holiday-makers after the Easter break, while PNO is planning a rally in Piraeus port at noon on Friday, with strikers gathering at Karaiskaki Square.

Other unions joining the strike include the national journalists' union federation POESY, the PPC power company union GENOP-DEH, while the KKE-affiliated trade union faction PAME is planning three strike rallies, two in Omonia on Friday and Saturday and one in Syntagma on Sunday morning at 10:30.

[09] Journalists to join general 48-hour strike on Friday and Saturday

"The social security/pension bill will impoverish and weaken the entire Greek population, violently unifies the two social security funds, abolishes the ad tax and takes the press as a hostage," POESY union said.

According to the union, the strike will start at 06:00 (local) on Friday morning and will end at 06:00 on Sunday and will include all public and private media - newspapers, radio, TV stations and online media, as well as the general secretariat of information and communication, ANA-MPA and all press offices.

The union also said it will allow a 15-minute news bulletins which will be broadcast as follows: 15-minute bulletin on radio stations from 13:15 - 13:30 and a 15-minute bulletin on TV stations 20:00 - 20:15.

[10] Roadblocks Committee urges farmers to join protest rally against omnibus bill on Saturday

The committee said the rally will start at 18.00 (local) in Omonia square.

"They will not take us by surprise. The government attempts like a criminal to finish the 'dirty work' quickly and has decided to bring the bill for a vote in parliament over the weekend," the committee said.

"Farmers, along with workers and other working class people, will once more give our answer to the government, the EU, the IMF and their policy," it added.

[11] Commission proposes 6-month extension of border controls within Schengen

The European Commission proposed on Wednesday to prolong "proportionate controls" at the internal Schengen borders of Germany, Austria, Sweden, Denmark and Norway for a maximum period of six months, to "address the threat to public policy and internal security resulting from the secondary movements of irregular migrants", the EC said.

The Commission said the proposal is in line with the Schengen Borders Code, as, and despite significant progress made by Greece, not all of the serious deficiencies identified could be adequately and comprehensively addressed within the three months' limit.

"The Greek authorities have delivered huge efforts and there is real progress on the ground. Moreover, the EU-Turkey agreement has dramatically reduced the arrivals in Greece. However, there is still is considerable migratory pressure at our external border, and large numbers of migrants present in Greece. Therefore, as long as serious deficiencies in border management persist some internal border control measures should be maintained," said First Commission Vice-President Frans Timmermans, adding that the EC wants to return to a normal functioning of the Schengen zone by November.

On his side, Commissioner for Migration and Home Affairs Dimitris Avramopoulos, said Greece in particular, as well as countries along the Western Balkan Route, "are still hosting a large number of asylum seekers and irregular migrants, who may present a risk of secondary movements," adding that the country has made considerable progress and is on the right path and the European Commission is continuously providing comprehensive support to the Greek authorities.

[12] Merkel says will do all she can to avoid border closures

German Chancellor Angela Merkel said she will do everything in her power to avoid a closure of the European borders as a result of the refugee crisis, during a joint press conference in Rome with Italy's Premier Matteo Renzi.

"I will do everything I can so as not to close the borders. We cannot abandon Greece and Italy," she said after the bilateral talks. "I criticized heavily the border closure decided by FYROM. Greece welcomed 60,000 refugees in just four weeks. This is similar to Germany welcoming 400,000 refugees in the same time," she added.

Merkel also noted that EU countries must show solidarity and understand that external borders belong to everyone and this is why the European Commission justly speaks of a fair distribution of weight.

[13] Dublin system doesn't work because frontline member-states have been left alone, says Timmermans

The Dublin system does not function because the countries on the frontline of the refugee crisis have been left alone to deal with the problem, First Commission Vice-President Frans Timmermans, said on Wednesday during a joint press conference with Migration Commissioner Dimitris Avramopoulos in Brussels on the reform of the EC's Common European Asylum System.

"The reason why Greece and Italy were unable to meet their obligations arising from Dublin, was that for years they asked other member-states to show solidarity to a problem they encountered, but the only answer they got was 'Dublin'," he said. "Dublin doesn't work because the member-states on the forefront have been left alone to manage the problem. There has to be a distribution of the weight."

He also said that if a country does not want to relocate asylum applicants, it will need to support financially those who do as an act of "economic solidarity".

Timmermans also acknowledged that some countries will not like the Commission's proposal however he insisted that the Dublin system need to be reformed. "If there is no solidarity here, in a short period of time there will be no solidarity elsewhere, in other areas. And that will be a huge blow to the European project," he added.

[14] President Pavlopoulos discusses migration with head of MPI Europe

The current situation and the Institute's contribution is particularly important for the activation of the fifth pillar, Pavlopoulos said, adding that the fifth pillar foresees that there must be a synergy in Europe with the countries of origin and transit countries, so as to create the conditions for growth in these countries that will keep potential migrants at home.

On his side, Papadimitriou said the crisis was sudden and extended and agreed with the President that the biggest problem in migration will arise from Africa, as in 15 years its population will have risen to almost two billion people.

[15] Idomeni camp will be dismantled, Migration Minister Mouzalas tells ANA-MPA

"The will be more concentrated efforts for dialogue, more concentrated efforts to create new places, more concentrated efforts to control who goes into Idomeni and what they do there," he added.

He said a meeting held in Thessaloniki with local governments, NGOs and organisations was a "working meeting that aims to end the horror of Idomeni" and one of many visits he has made in the effort to "solve the problem, both with the railway line and with the refugees."

Mouzalas refused to be pinned down to a definite date, however, noting that the effort had begun some time ago "so that without the use of violence, we can empty Idomeni." If refugees chose to stay in Idomeni when there were alternative hospitality places available, he added, "then they must put up with the consequences of this choice."

He denied reports that the government was threatening to not renew the residence permits of those that stayed in the camp, saying the government's offer to renew the papers of those that moved to official camps had been painted in a negative light when it was actually intended as an incentive and "a gift".

"The papers that these people there were given, to a proportion of about 70 pct, have expired. In other words, their papers are no longer valid. We say that if they come to the camps, their papers will be automatically renewed. The difference is that we are not threatening; we are offering a prospect of legality," he clarified.

"If the police start checking, their papers are not valid. If they go to the camps, their papers will automatically regain validity. It is a gift, not a threat. If it was a threat, we would make the police arrest anyone that left Idomeni to go to Polykastro. It is an offer, which is a different thing," he said.

[16] Government VP says rail freight services in Idomeni to be restored soon

During the meeting, the management of TRAINOSE explained to Dragasakis the serious problems facing rail freight traffic in the country due to the blockade of the railway tracks in Idomeni by refugees and migrants in the past few weeks. They said these problems deteriorated by the decision of Bulgaria's railway company to limit the number of trains which may travel to and from Greece through its territory.

On his side, the VP noted the government is aware of the problem and will soon take all the necessary measures to normalize traffic.

[17] 53,900 refugees and migrants in Greece on Thursday

More specifically, 14,119 refugees were in Attica region (2,135 at the port of Piraeus and 3,269 at Elliniko hosting facilities).

1,923 refugees were in central Greece, 338 in southern Greece, and 29,286 in northern Greece (10,124 at Idomeni camp and 1,079 at Polykastro's gas station).

[18] PM Alexis Tsipras to address meeting of SYRIZA lawmakers on Friday

[19] Foreign ministry welcomes restoring of ceasefire agreement in Syria

"We hope that this agreement will help to end the bloodshed and create the right conditions for a positive outcome from the diplomatic efforts to bring peace to the country. The Syrian people are entitled to a homeland of peace, security, and social and economic development," the ministry said in a press release.

[20] Turkey must resolve its problems via diplomatic avenues, Dep. FM Mardas says

The minister said that he did not fear any "tense" incident with Turkey, while noting that it must first complete all 35 chapters in accession talks before it can join the EU.

"Among these are two chapters, one of which concerns fishing and the second concerning security, defence and external relations. These two chapters will solve all the problems we have with Turkey. Consequently, any activity on Turkey's part is without meaning, there is an established dialogue and commitments that it must fulfill," he said.

Financial News

[21] ECB lowers borrowing ceiling for Greek banks by 300 mln eurps

[22] Government plans to vote new bill on growth by end of May, says investment official

The draft bill was posted online today for public consultation.

Describing the type and size of the incentives and subsidies granted to companies, as well as the categories and economic sectors included in the bill, Labrianidis stated that the aid will have the following forms:

A tax exemption of up to 20 pct annually and sharing for the next 15 years, in order to enhance performance.

A state subsidy between 10 to 45 pct, with geographical criteria, but also depending on the size of the business.

Leasing subsidy

Interest subsidy

Subsidy for employment costs

Fixed tax framework for 12 years for investments exceeding 20 million euros which will create at least two new jobs per one million euros of eligible expenditure.

Funding of business risk through a Holding Fund, loan guarantees and equity holdings

[23] Greek economic sentiment index unchanged in April

In a monthly report, IOBE said that the April figure remained far below a 93.3-point reading recorded in April 2015, reflecting a stabilization in the retail commerce, services and the industrial sectors, while business expectations in the construction sector deteriorated further.

"Consumer confidence continued falling, to a new three-and-half year low. It is obvious that the economy remained a prolonged period of wait-and-see, awaiting completion of a first review of the Greek programme and finalizing of a pension and tax legislation which could affect households and enterprises," IOBE said.

More analytically, business expectations over short-term production remained slightly positive while negative estimates over new orders and demand improved moderately.

In the services sector, expectations over current conditions and demand were less negative, while short-term demand estimates remained negative.

In the retail commerce, optimistic estimates over current sales remained unchanged along with negative estimates over short-term sales, while inventories were below historical average levels for the season.

In the construction sector, business expectations deteriorated further.

Consumer confidence deteriorated further in April as households were more pessimistic in their estimates over their finances, the country's finances, saving intention and unemployment trends in the next 12 months.

[24] Papastratos unveils new production line

The 25-million-euro investment will turn the factory into a export center, as around 60 pct of production will be distributed to more than 30 countries around the world, from the Balkans and Europe to Singapore, Mexico and Indonesia.

Christos Harpantidis, chairman and chief executive of Papastratos, commenting on the investment said that "a unique combination of a large organization such as Philip Morris International with the Greek soul of Papastratos gives us the opportunity from a stable, healthy base to invest and support Greek business activity offering added value and prospect to the Greek economy. In this framework, we implement a wide-spread investment programme".

Harpantidis said that Papastratos is the 10th largest enterprise in Greece. "Our strategic choice is to support the country and help growth. We will continue investing. We will continue working so that our flavor of success will lead Papastratos for the next 85 years," he noted.

[25] Retail stores to remain closed on May 8, unions say

In a joint statement, the small businesses' confederation GSEVEE and retail federation ESEE said their decision was taken as a protest to the government's decision to introduce its omnibus bill on social security and taxation with a fast-track procedure during the weekend.

[26] Greek stocks end strongly higher

The composite index rose 1.94 pct to 601.48 points, off the day's highs of 604.52 points. The Large Cap index rose 2.71 pct and the Mid Cap index ended 3.61 pct higher. Turnover was an improved 72.99 million euros in volume of 119,227,098. Viohalco (13.45 pct), Eurobank (8.72 pct) and National Bank (8.49 pct) scored the biggest percentage gains of the day among blue chip stocks, while Titan (2.34 pct), Jumbo (1.75 pct) and Athens Water (1.73 pct) suffered heavy losses.

Among market sectors, Banks (7.13 pct), Health (4.67 pct) and Raw Materials (4.09 pct) scored big gains, while Construction (1.44 pct) and Personal Products (1.20 pct) suffered losses. National Bank and Piraeus Bank were the most heavily traded securities of the day.

Broadly, advancers led decliners by 63 to 26 with another 18 issues unchanged. Viokarpet (28.78 pct), Progressive (20 pct) and Pegasus (16.67 pct) were top gainers, while Perseus (12.86 pct), Moda Bagno (10 pct) and Mevaco (9.79 pct) were top losers.

[27] Greek bond market closing report

In interbank markets, interest rates were mixed. The 12-month rate rose to -0.011 pct from -0.012 pct, the nine-month rate rose to -0.0.78 pct from -0.079 pct, the six-month rate was -0.140 pct from -0.141 pct, the three-month rate was -0.247 pct from -0.250 pct and the one-month rate was -0.342 pct.

[28] ADEX closing report

General News

[29] ND leader praises work for Opera House, library at Stavros Niarchos Foundation Cultural Center

"It is a truly remarkable project which will allow tens of thousands of Athenians and citizens from around the world to enjoy the unique services of a sophisticated library and access to the unique hall of the new Opera," he said after the tour.

Mitsotakis also said it is everyone's duty to preserve this unique project which reinforces the image of Athens in the global cultural map and thanked the Stavros Niarchos Foundation for "this extremely generous donation" it is making to the Greek State.

[30] Nearly 1,700 returned to native countries from Greece in April, police report

The greatest number of returns were to Albania (852), followed by Pakistan (157), Morocco (107), Iran (61), Georgia (51), Afghanistan (45) and Bangladesh (29). A total of 6,427 third-country nationals have been returned to their country of origin since the start of the year, ELAS said.

[31] About 80 refugees protest against closed borders at Greece-FYROM buffer zone

Earlier in the day, they had gathered outside the UNHCR offices at the camp of Idomeni. Because of the tension that prevailed, members of the UNHCR had to leave the camp.

The refugees departed later on Thursday evening, allowing UNHCR staff to return to their posts.

[32] The Thursday edition of Athens' newspapers at a glance

DIMOKRATIA: The horrible truth. They sank Greece to save European banks

EFIMERIDA TON SYNTAKTON: Greece to promote the automatic correction mechanism to ensure debt

ESTIA: The whole truth on new measures

ETHNOS: The new doctrine for investments and development

IMERISSIA: Double alarm. Fears for impact on tourism and commerce

NAFTEMPORIKI: Greece's debt to be discussed at the Eurogroup

RIZOSPASTIS: Fake disputes to cover the anti-popular measures

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