Athens News Agency: News in English, 05-12-12

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

CONTENTS

[01] Papandreou says PASOK's credibility a primary criterion for victory in next election

[02] Central bank urges more structural change to the economy

[03] Minister meets with high court prosecutor following state agency head's resignation

[04] Trade unions stage strikes protesting gov't reform

[01] Papandreou says PASOK's credibility a primary criterion for victory in next election

Additionally, he said the ND government's reforms so far have failed, while adding that the reform packages disrupt labour relations.

He again referred to what he called a "Scandinavian model" for state sector enterprises, saying he's in favour of both "flexibility and security", whereas whatever changes must be implemented with negotiations.

The government recently unveiled a draft bill that, among others, ends civil servant-like tenure for new hirings at state-run utilities (telephony, power, water etc.) that are both listed and not listed on the bourse.

In response to a bevy of questions involving church-state relations, Papandreou said each side's role should be distinct, whereas his PASOK party will soon be in a position to table proposals delineating each side's role. Along those lines, he again expressed his opposition to a recent decision upgrading church-run tertiary education institutions.

Meanwhile, asked about his party's position regarding the prospects of allowing the marriage of gays in the country -- an idea that has generated a caustic reaction by the Church of Greece -- Papandreou said PASOK is studying a proposal for a future "cohabitation pact" that will relate to heterosexuals as well as homosexuals.

Asked about recent high-profile statements over his party's "renewal" -- a phrase initially inferred as affecting a handful of top PASOK cadres that held top ministerial positions in the previous Simitis governments - Papandreou said every cadre is judged by his political presence. He added that PASOK, in government between 1981-1989 and 1993-2004, has proceeded with more radical internal changes than the ND government has made during its 11 years as the main opposition.

[02] Central bank urges more structural change to the economy

"The unemployment rate remains unacceptably high despite the fact that the average rate of growth in the last six years is 4.0%. This shows that the problem is structural, that is to say linked to a lack of flexibility in the economy," he noted.

Joblessness was running at an average 10% in the first half of 2005.

The central bank governor also said that the current account deficit was disquieting.

"According to the new presentation of data, which excludes the capital transfer balance, it had fallen last year to 6.3% of gross domestic product from 7.2% in 2003, and is expected to increase again this year to touch 7.5% of GDP. A figure around 7.0% of GDP for a number of years shows that the country has a major competitiveness problem," the governor said.

Beyond strengthening competitiveness and productivity, emphasis must be laid on timely measures to tackle the problem of an ageing population.

"This means a policy is needed to increase the birth rate," he noted.

A high public debt, which was 109.3% of GDP in 2004, coupled with an anticipated increase in spending linked to the ageing population, made fiscal adaptation imperative.

The public debt as a proportion of GDP is targeted to fall to 60% by 2015 at the soonest, when spending on pensions will begin to rise as a percentage of GDP.

Average harmonised inflation at 3.5% in 2005

Garganas said that average harmonised inflation in 2005 would stand at 3.5% from 3.0% a year earlier, welcoming the fact that the rate had been contained, despite soaring global oil prices and an increase in Value Added Tax rates along with other indirect taxes.

But core inflation, which excludes energy and non-processed foodstuffs, would fall slightly to 3.2% from 3.4% in 2004.

"Concerning GDP in terms of the data currently at our disposal, we estimate a figure of about 3.5% this year," the central bank governor said.

Finally, he sent a message to the government and to unions on upcoming wage neotiations.

"It is especially important that both government incomes policy for state workers and collective bargaining between the social partners in coming months should contribute to nominal increases of average gross earnings in the private and public sectors in 2006-2007 that are compatible with the need to attain price stability," Garganas said.

Speaking on the sidelines of the bank's council meeting, the head of the Federation of Greek Industry, Odysseas Kyriakopoulos, reported that major problems for business included red tape, a lack of town planning, and delays in issuing permits.

[03] Minister meets with high court prosecutor following state agency head's resignation

In exiting the Supreme Court building in downtown Athens on Monday morning, Panayiotopoulos stressed that neither he nor the prime minister's office received a letter by Emfietzoglou criticising Economopoulos.

[04] Trade unions stage strikes protesting gov't reform

Wednesday's strike means inconvenience for mass transport users. With the exception of the electric railway ISAP and the Metro, which will operate from 11 a.m. until 6 p.m., all other means of public transport will not service passengers.

The unions are opposed to the bill aimed at overhauling state-run enterprises, and are particularly opposed to article 14 which does away with collective bargaining.

The bill will be debated in Parliament on Tuesday.

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