Mr. Avramopoulos did not reveal his future political plans, he stated that KEP will continue to be a movement of questioning and will continue to have an autonomous presence until he sees how things turn out.

Comments on the party's suspension of function from the government and the Opposition were strict.

"It is clear that the non-existence of politics, the non-existence of a policy, the inability to intervene on major problems of the people and the country, led Mr. Avramopoulos' party to a dead end", stated Government Spokesperson Christos Protopapas.

"Of course, all those who have no policy, all those who avoid proposals and specific answers, will be led to the same dead ends", he pointed out.

"It is a development that does not surprise us", stated Press Spokesperson of New Democracy Thodoris Roussopoulos, to a question on the subject.

"He will determine his next moves in the political scene. New Democracy will evaluate the whole situation in the long run", underlined Mr. Roussopoulos.

It should be noted that Mr. Avramopoulos left his party members to vote according to their conscience in the municipal elections.

That morning, the Mayor of Athens had met with Honorary New Democracy President Konstantinos Mitsotakis, and it is possible that he had informed him of his decision, although he stated that during their meeting they had discussed Mr. Mitsotakis' health p roblems.

Mr. Avramopoulos said that he had no contact with the President of New Democracy, Kostas Karamanlis. It should be noted however, that last week during a television interview, Mr. Karamanlis had stated that Mr. Avramopoulos was welcome to New Democracy, b ut not as the President of a political body.

However, during the KEP financial committee's last meeting it appreciated that their financial problems could not be overcome, because expenses until the next elections would be too high.

According to Mr. Byrne, the European Court has already sanctioned Greece in two cases. The sanctions concern not applying directives 93/118/EEC and 96/43/EC (funding health checks and investigations), as well as directives 95/69 and 98/51 (approving and registration of certain facilities and intermediaries in the animal feeding sector).

Two other cases are also pending before the European Court. These are the violations of directives 1999/20 (added material in animal diets) and 1999/89 (poultry meat - health checks).

Mr. Byrne also noted that in 11 cases the violation procedures have already begun, but have not yet reached the point of appealing to the European Court.

In his answer, Mr. Byrne also underlined that "in order to secure better application of community legislature, the European Commission is closely watching how Greece will act after the recommendations in the reports were made, following inspections by th e Bureau for Foods and Veterinary Issues (GTKTh)". He met with the Greek Minister of Agriculture twice last year in order to evaluate the situation and pressure the Greek authorities into correcting the inadequacies in the control systems detected in the GTKTh reports without delay".

Specifically, the Minister encouraged the Chinese state airline to take up the responsibility of securing steady Beijing-Athens, Shanghai-Athens, and Cantonas-Athens air communication, since, as he underlined, Olympic Airways is not in the position to ta ke up such a role.

"The relations between Greece and China are developing into an important political development in the Eastern Mediterranean region. The foremost economy in its geopolitical region, Greece, and the most promising one in Asia, China, have the opportunity t o open a road of cooperation", mentioned Mr. Tsohatzopoulos characteristically.

In fact, it is a further positive coincidence that China will receive the torch of the Olympics from Athens, for the organizing of the 2008 Olympics in Beijing. In that framework, a Chinese delegation is coming to Athens to observe the progress of the Gr eek preparations from up close.

"This common experience of the Olympics, gives us the opportunity to communicate in the sports, environment, and culture sector, in a very stable and specific way, and is a excellent field of cooperation and communication between our people", pointed out

Mr. Tsohatzopoulos.

Immediately after the meeting Mr. Karamanlis made the following statement:

"We had a very fertile discussion with the US Secretary of State, Mr. Powel. We covered a range of issues. We discussed terrorism. I had the opportunity to repeat that we support the international struggle against terrorism, and that, as New Democracy, w e have been hurt and have mourned victims due to terrorist actions. We then discussed issues concerning the broader region, where the key is stability and further stabilization. On the Balkans we repeated our view that the policies applied there must be b ased on the inviolability of borders, respect of human rights, as well as the prospect of the countries joining NATO and the EU. We are obliged, as free societies, to give these people a prospect, a dream for their future stability.

Of course we discussed the Cyprus issue. It was a chance for me to point out to the Secretary of State that we wish, we want, to contribute to finding a fair and viable solution to the political problem of Cyprus, based on UN resolutions and European acq uis. In any case, the solution of the political problem is not, and cannot be, a requirement for Cyprus' accession to the EU. An accession that must take place in the Spring of 2003, during the Greek Presidency, in the first group of member-states of the enlargement.

I also had the opportunity to express our views on the Euroarmy to the Secretary of State. That the Ankara text, as it stands, cannot be accepted and that it must be reviewed, so that vital Greek interests are covered.

Finally, we discussed Greece-Turkey bilateral relations. I had the opportunity to repeat our standing views. That we support Turkey's European orientation, that we want to smoothen our relations, but that it must certainly be based, initially, on accepta nce, on the side of Turkey, of respecting International Law and leaving behind threats of violence and the use of violence".

In an interview to Flash radio today, Mr. Petsalnikos stressed that the committee preparing the reform proposal is looking into the possibility of decriminalizing certain crimes. Crimes touching on the price control code, traffic regulations, and health legislature, which do not merit criminal punishment, with the prospects of foreseeing administrative consequences. The aim is the decongestion of prisons, which, however, is not expected to be spectacular, since a large amount of convicts, approximately 4 0%, are serving for drug law violations.

Also, according to Mr. Petsalnikos, the Justice Ministry is looking into the promotion of an alternative form of serving sentences (community service), which would mainly concern underage offenders. This measure has been successfully applied in many othe r European countries, and can help with the improvement and decongestion of the present prison situation, as well as the steady reentry of any who break the penal code into society. However, the Minister of Justice stressed that both local bodies as well

as judicial officials are not accustomed to the institution of alternate serving of sentences, while there is a complete lack of the necessary framework (social workers) who would oversee the community service.

Finally, Mr. Petsalnikos announced the hiring of 145 social workers this year, and another 154 in the next two years, while he stressed the necessity of increasing the number of guards and constantly train them, the functioning of an inspection and contr ol body for prisons, and mainly the creating of the necessary infrastructure.

The award for Greek Media Organization Abroad of 2001, will be awarded to the German "ARGO TV" television station, to the Australian "ARGO TV" radio station, and the Georgian "Greek Diaspora" newspaper.

The award of best report from Greek television and radio media Abroad, will be awarded to reporter Athena Krikeli from the US, who reported on the Cyprus issue, as well as to reporter Efthymios Babanatsas from Germany, for reporting on "The Education of Greek Children in Germany".

The award for best article/report in Greek written press Abroad, will be presented to journalist Titos Christodoulou from Great Britain, and the award for the best website of the year will be shared by the Greek community in Santiago, Chile, and the Gree k Abroad news service, TGA NEWS, in Australia. Apart from the awards that come with money awards, honorary commendations will be made.

Mr. Papandreou met in Athens with Cypriot Parliamentary Committee on European Affairs President Tasos Papadopoulos and stated that military solutions are anachronistic, adding that Cyprus's EU accession is at the finishing stretch.

For the record, the Nicosia government interprets the reinforcement of the Turkish occupation army in northern Cyprus as an effort to exert pressure on the Greek Cypriot side on the occasion of the developments in the Cyprus issue. However, Cypriot Repub lic Minister of Defense Socrates Hasikos stated that the integrity of free Cyprus is protected effectively by the National Guard which is ready for any eventuality.

The appointment of Mr. Garganas was finalized through a majority vote by the responsible parliament committee.

On the GDP growth rate in 2002, Mr. Garganas stated that there is no reason to revise the initial estimates. Regarding the consumer confidence increase and the overcharging of the Greek households, he stated that the Bank of Greece cannot intervene to th e banks regarding the recipients of their loans. He added that personal loans in the EU are at 50% of the GDP whereas in Greece they are at 18%.

On the talks of the Greek side with the Spanish EU Presidency, he commented that nothing is given for the moment.

He stated characteristically that there are no indications that a definite solution can be found immediately.

He said that the absence of policy and platform, as well as the absence of specific proposals and interventions to major problems faced both by the country and the people, create dead ends. And when the dead ends intensify they lead to decisions such as the one made yesterday.

When asked to comment on the likelihood of Mr. Avramopoulos to return to right-wing main opposition party of New Democracy, the government spokesman responded that he will not go into family affairs.

The businesses in general follow an upward course but they have not reached the level they were before, said Mr. Psaroudakis. He added that in his opinion they will need six more months to achieve this. He said that the issue of the economy is a separate

one from that of the businesses. The economy has recovered and in the first quarter of the current year it had recovered by 5.3%. However, he said, there is still an inaction in businesses with a low profit level compared to what they used to have and th is can be seen in the reaction of the Wall Street.

Of the stocks trading today, the overwhelming majority of 213 recorded losses and 84 had gains, while the value of 77 stocks remained unchanged.

Mr. Protopapas stated that Turkey escalates a number of provocative moves aimed at drawing attention away from the major issues namely, the solution of the Cyprus problem and Cyprus' EU accession. He said that it attempts to create secondary fronts and t urn the dispute between the International Community and Turkey, the dispute between the EU and Turkey, into a Greek-Turkish dispute.

The government spokesman concluded that Greece will continue its strategy while taking all necessary measures.

The meeting was also held to prepare for International Olympic Committee, IOC, Coordinating Committee President Dennis Oswald visit to Athens on June 26, while the plan for the aesthetic upgrading of downtown Athens in view of the Olympic Games was also examined.

Undersecretary of Press Tilemachos Hitiris stated that the Prime Minister called for further intensification of the work done and stressed that the responsible ministers should follow closely the course of the Olympic projects underway.

The ND President raised the issue of his party's disagreement on the Ankara text concerning the Euroarmy, during his discussion with the US Vice President. He stressed that he agrees on the NATO-EU cooperation on defensive issues, but he will not accept the text presented, unless there are significant changes in it

Both in statements as well as during his discussion with Mr. Cheney, Mr. Karamanlis stressed that dealing with terrorism is a priority issue for his party, which is participating and supports the international effort being made, and assured Mr. Cheney th at the 2004 Olympics will be the safest Olympics ever.

He noted that ND has special reasons and is especially sensitive on this subject, because there have been friends and partners among the victims of terrorism.

The President of New Democracy pointed out the necessity of stability in the Balkans and the European orientation of the region's countries.

"A policy needs to be promoted in the Balkans, one that will be supported by the inviolability of borders, the respect of human rights, and with the perspective that all Balkan countries will, eventually, become full members of NATO and the EU", he stres sed.

Finally, he emphasized that Cyprus must be incorporated to the EU with the first group of candidate countries.

"There must be a political solution and we encourage it. But if this relentlessness on the side of Denktash and Ankara continues, it is certain that Cyprus must be incorporated in the upcoming EU enlargement in the first group of candidate countries", he

stressed.

Mr. Karamalis characterized their discussion as "very useful" and described the level of bilateral relations as "good", appreciating, however, that they can improve.

On the side of New Democracy, present during the meeting were the Coordinator of National Defense and Foreign Affairs Committee, Dora Bakoyanni, Head of the Foreign Sector, Mr.Aristotelis Pavlidis, and MP, Ambassador Petros Molyviatis.

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