Athens News Agency: News in English, 07-04-25

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

CONTENTS

[01] PM says Greece supports political unification and deepening of EU

[02] Almunia praises gov't's deficit slash

[01] PM says Greece supports political unification and deepening of EU

Karamanlis added that Greece is participating, in any case, in the group of 13 countries that have moved ahead with Economic and Monetary Unification, shaping the European Union's nucleus.

The prime minister went on to say that Greece is participating actively in the reflection on the development of the EU. It is participating in the shaping of the European model on boosting economic dynamism, increasing employment and strengthening social cohesion.

"Greece is implementing today a concerted reformist strategy. We are applying changes and reforms for the improvement of our economic and social performances, in absolute agreement with the European strategic plan. We have shaped and we are following a new mixture of economic policy with a clear social dimension. The goal is a double one:Sustainable fiscal adjustment. Sustainable growth. The aim is an increase in wealth produced and the fairer distribution of the social dividends," he said.

Karamanlis further said that "today, however, we are at a crucial point once again:Europe is sceptical again over its course. The challenges that it is being called on to confront are, now, more complex. Unemployment is dealing a blow, to a smaller or greater degree, at almost all countries. The aging of the population is pressuring the Social Insurance and Health systems."

The prime minister also said that "the greenhouse phenomenon is warning of the increasing dangers and the obligation to protect the environment. The energy issues are dictating a common approach for the safety of the EU's energy supply. The intensity of international competition is exercising strong pressure for increased economic effectiveness and technological supremacy. The globalisation of markets makes more intense the need for reforms, for the strengthening of the competitiveness of our economies, for regional and social convergence."

He further added that "these issues are preoccupying all governments and concern all European citizens. The new era requires changes and reforms to handle dangers and the utilisation of opportunities that are coming. It requires a collective effort and close cooperation."

Lastly, Karamanlis stressed that "it is certain that all together, with a strong Economic and Political Union, can do better. All of us EU member-states have committed ourselves on the Lisbon Strategy on the direction of structural changes. We are committed on a joint effort to strengthen research and technology, increase competitiveness and employment and increase the size of the product produced and distribute it fairer."

Finance and Economy Minister George Alogoskoufis made an address at the opening of the event, underlining that the EU member-states must utilise their experience in the economic policy sector from the implementation of different economic models and practices to enable answers to be provided for the challenges currently facing the European economy.

[02] Almunia praises gov't's deficit slash

In outlining three "messages", as he said, he brings to Athens regarding the Greek economy -- a year and a half after his last official visit -- Almunia first praised the Karamanlis government for successfully cutting the deficit from more than 7 percent to under the mandated 3-percent level.

The positive comment by the influential Economic and Monetary Affairs Commissioner comes ahead of next week's Commission recommendation to the Ecofin council on whether the excessive deficit procedure against Greece will be lifted. The government has expressed genuine optimism that the country's exit from the regime will serve as a distinct fillip for its overall economic strategy.

Almunia spoke at an event in downtown Athens organised by the economy and finance ministry, as he followed Karamanlis and Finance Minister George Alogoskoufis, the conference's host, to the podium.

Another Almunia "kudo" was Athens' recent acceptance of a Euro-group decision to have all eurozone member-states field balanced budgets, at least, by 2010.

The Spanish Commissioner's other two messages were "more efforts" to rapidly lessen Greece's debt-to-GDP ratio (currently at above 100 percent) and, just as urgently, deal with a rapidly ageing population by proceeding with social security and pension reforms.

Regarding the latter, Almunia reiterated that figures show Greece will be find itself in a "high risk category" over the long-term if major reforms are not taken to overhaul the pension system, boost competitiveness, raise employment and streamline public administration.

On a final note, he said the only figure with a negative course in relation to figures from two years ago is Greece's current accounts deficit.

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