The cabinet yesterday approved a contract with the German Hochtief group for construction of a new international airport outside Athens. The unanimous decision was taken during a cabinet meeting chaired by Prime Minister Andreas Papandreou.
Public Works Minister Costas Laliotis said the contract would be signed Monday by representatives of the Greek state and a consortium led by Hochtief. The deal will then be sent for Parliament's consideration, where the ruling Socialists have a comfortable majority.
Mr. Laliotis said the 2.3 billion dollars project in Spata, some 15 miles (25 km) from Athens, would be completed by the year 2000. "It is a vital project that will greatly benefit our country," the minister said. He said the new international airport would be named after one of Greece's leading statesman, Eleftherios Venizelos.
The contract, bruised by a string of delays, won cabinet approval after the Greek side secured favourable revisions. Hochtief was awarded the airport contract in October 1993, but the socialist government that came to power that month froze the deal, saying its conservative predecessor had clinched an unfavourable agreement.
Under the amended terms of the deal, Hochtief will own 45 per cent of a company to be set up with the Greek state to operate the airport. The original deal gave the German consortium a 60 per cent hold.
Mr. Laliotis said the new agreement also limited spending costs, and trimmed the German company's operational rights from 50 to 30 years. The airport will initially have two runways and a terminal capacity of close to 16 million passengers annually.
Mr. Laliotis said the existing airport at the seaside suburb of Hellenikon would close after the Spata project is completed. The 1,250-acre area will be converted into a park.
Main opposition New Democracy party spokesman Vassilis Manginas said New Democracy would state its position on the Spata airport deal after reviewing the contract in detail.
He accused Mr. Papandreou of delaying the project while in office in 1982, saying the postponements resulted in billions of drachmas in losses. Mr. Manginas urged the government to "give parties the necessary time to review the Spata deal" before it is brought to Parliament for discussion.
Political Spring party spokesman Notis Martakis, commenting on yesterday's cabinet meeting, said the large projects planned were a energy boost urgently required by the Greek economy, but the government's incomprehensible handlings have delayed construction by about two years. In the case of the new airport, he said, these delays have meant losses in European Union funds, jobs, revenue and in the form of the multiple-effects of the project on the whole of the economy.
Komotini chosen for proposed gas-powered plant. Following a recommendation by Commerce and Industry Costas Simitis, the cabinet yesterday decided to build a natural gas power plant in the broader industrial area of Komotini.
Commenting on the decision, government spokesman Evangelos Venizelos said the particular location was preferred to Alexandroupolis and Kavala for national and developmental reasons, but also because the Thracian city possessed a greater number of technical advantages.
Education Minister Georgios Papandreou on Friday proposed a new higher education entry system based on a three-year run of placement tests for high school students.
The "national high school diploma" system would abolish the current four subject groupings system where high school students are lectured and tested on courses according to the field they hope to major in.
Mr. Papandreou said students would be subject to general assessment tests during their three years of high school with a final examination to obtain the national high school diploma. Assessment tests would examine students in six basic courses, such as Greek, mathematics and history.
High school seniors will have the option of choosing from a series of electives. University entries will be awarded on students' cumulative scores, comprised of high school grades and the assessment tests. Universities and Higher Technical Colleges (TEI) will set specific entry scores for each department, allowing students to prepare accordingly.
Mr. Papandreou said he would immediately begin talks with political party officials and education representatives in a bid to inaugurate the new system in 1996.
Asked to comment on opposition party criticism that the new system would lead to scores of private tutorial schools flourishing nation-wide, Papandreou said: "Our goal is to upgrade high school education.
Students will not be examined on the basis of one designated textbook, on the contrary, there will be many sources of education and knowledge. "It is also being foreseen by the ministry to bolster the teaching of students with weak academic performance," he added.
Premier declines comment on alleged memo by 25 PASOK deputies Prime Minister Andreas Papandreou yesterday refused to comment on a memo allegedly signed by 25 deputies of the ruling PASOK party calling for internal party changes. "I neither know of it, nor do I have a comment on it," he said before yesterday's cabinet meeting.
Press Under-Secretary Tilemachos Hytiris, commenting on various recent internal party reactions stemming in part from the premier's recent statement he would support his wife, Dimitra Liani-Papandreou, if she decided to run for Parliament, said they posed no serious problem and that party unity was a given.
Former minister Evangelos Yiannopoulos, who had a 15-minute private conversation with the prime minister before the cabinet meeting, said in his opinion, the issue of the candidacy of the prime minister's wife was closed and that the "mobility" inside the party was to be attributed to the fact that party members would break up for the summer recess.
Asked about the memorandum of the "25," he added: "All these are impossible dreams, how come they have remembered them now?"
Bank of Greece governor Lucas Papademos Thursday announced the phased application of measures designed to limit liquidity in the economy, through increasing the percentage of compulsory deposits by commercial banks with the central bank from 9 to 11 per cent.
Compulsory deposits are extended to new categories, such as foreign exchange accounts of non-residents and all bank liabilities to residents and non-residents in the form of deposits or loans, or, more generally, connected with fund management agreements. The extension of compulsory deposits on foreign exchange accounts will commence at the end of August and be completed at the end of October.
The new measures are not expected to significantly affect interest rates, as the resulting cost increases to the banks will be limited.
In a statement yesterday, Political Spring party leader Antonis Samaras criticised the central bank measures, saying the government had to change its fiscal policy. "The Greek economy's problem is not increasing foreign exchange lending rates but trimming Greek currency loan rates," Mr. Samaras said.
He said the new measures would not "limit the extreme fluidity of the Greek economy." "By maintaining the prevailing economic policy, Greek productivity will not be able to correspond to increased demand in consumption," he said. "The adopted economic policy will demand austerity measures in the future and will wipe out investments, increase unemployment and reduce incomes," Mr. Samaras added.
Meanwhile, in yesterday's Bank of Greece auction for one-month deposits, offers totalling 50 billion drachmas were accepted with rates averaging at 15.65 per cent.
The Prices and Revenues Commission announced yesterday increases in the public utility rates of the Hellenic Post Offices (ELTA) and the Greek Railways Organisation (OSE). According to the announcement, average increases in t he public utility rates are estimated at 9 per cent for OSE and 7.9 per cent for ELTA.
An Athens court yesterday accepted a petition filed by Pavlos Nikolaos Vardinoyiannis seeking appointment of an interim administrator for his family's shares of Motoroil in order to acquire the right to sell 50 per cent of the Greek petroleum company's shares to the Saudi Arabian state-owned conglomerate Aramco.
The provisional remedies panel of the Single-Member accepted the petition brought by Mr. Vardinoyiannis against his brothers, Demosthenes and Pyrros, as well as his sister, Ioanna, asking either Demosthenes or himself be appointed interim administrator.
Under an agreement announced in June, Aramco would acquire a 50 percent stake in the companies Motoroil and Avinoil, both owned by the Vardinoyannis shipping and refining group.
In the reasoning of her decision, presiding judge Aikaterini Papatheodorou underlined that the agreement between Motoroil and Aramco was not only beneficial for the company and its shareholders, but also for the Greek economy in general.
Ms. Papatheodorou said the unwillingness of Pyrros and Ioanna Vardinoyianni to endorse the agreement could jeopardise the deal, which must be signed by July 31.
Pyrros, Ioanna, Pavlos and Demosthenes are the four children and heirs of Motoroil founder Nikos Vardinoyannis, who died in 1975. Following the court's decision, it is expected the agreement between Motoroil and Aramco will be signed over the weekend or Monday at the latest.
The main opposition New Democracy (ND) party yesterday accused the PASOK government of gross mismanagement of the tourism sector, claiming Greece would lose 32 billion drachmas this year as a result of government "failure."
ND deputy and former national economy Under-Secretary responsible for tourism, Theodoros Kassimis, accused the government of "criminal" mismanagement of tourism affairs.
Mr. Kassimis attributed what he termed a "crisis" in the tourism sector to a lack of specific and realistic policy; "complete disintegration" of the National Tourism Organisation (EOT); lack of co-operation between the Tourism Ministry and tourist-oriented businesses; a wasting of resources through "scandalous" mismanagement and "bogus" commissions, as well as what he called Greece's "absence" with respect to promotion on the international market.
Tourism Minister Nikos Sifounakis said Wednesday that "a wrong tourism policy" has been followed over the past 10-15 years, promising changes to improve the standard of services as well as increasing the number of visitors to Greece.
Foreign ministers from 11 Mediterranean and southern European nations met in Tunisia Friday to discuss security issues following a recent bomb attack in Paris. Participating ministers are from Algeria, Egypt, Greece, France, Italy, Malta, Morocco, Portugal, Spain, Tunisia and Turkey.
The 11 foreign ministers are attending a two-day conference of the "Mediterranean Forum" in Tambarka, about 150 kilometres Northeast of Tunis. Officials in Tunis said the unofficial meeting would lay the ground work for the upcoming "Euro-Mediterranean" conference between the 15-member European Union and 12 Mediterranean countries. The unprecedented conference is scheduled for Barcelona in November.
Greece's General Consul to Hanover, G. Demetriadis, issued a demarche yesterday to the local "Protection of the Constitution Service" of Lower Saxony protesting allegations by its president, Ralf-Peter Minir, that Kurdish fighters are being trained in Greek camps.
Mr. Minir made his statement during an off-the-record conversation with German journalists in Hanover. He allegedly said there were also camps in Germany for the training of volunteers wishing to fight on the side of the Kurdish Workers Party (PKK).
Meanwhile, the vice president of the Verfassungs-Schutz area, Mr. Homut, told the Greek programme of the German Radio that he had information related to training centres for PKK fighters in Greece, but declined to elaborate.
Meanwhile, the director of the press office of the Greek Embassy to Bonn, A. Papadatos, told the program "Deutche Welle" that Mr. Minir's statements were "slande-rous." Protesters march outside Turkish embassy in Athens About 100 Kurds staged a protest demonstration outside the Turkish Embassy yesterday to protest an on-going Turkish offensive against the Kurds.
Protesters shouted slogans such as "Turks fascists, killers" and "Turks get out of Kurdistan." They also burned a Turkish flag. After half an hour, protesters marched to the Athens Cultural Centre, where 50 Kurds have been staging a hunger strike for the past week.
US envoy Matthew Nimetz will fly to Skopje Monday to meet with government officials, Foreign Ministry sources in the Former Yugoslav Republic of Macedonia (FYROM) said Friday. They said the envoy's visit was scheduled at his own initiative and includes talks with FYROM Foreign Minister Stevo Crvenkovksi. American diplomatic sources in the former Yugoslav republic said Mr. Nimetz would fly to Athens Tuesday.
Premier leaves for Cretan vacation Prime Minister Andreas Papandreou will leave for Crete today on vacation until Aug. 20. Government sources said Mr. Papandreou and his wife, Dimitra, will stay at the seaside resort of Elounda.
Private bank deposits increased by 277 billion drachmas in the first half of 1995, compared to an increase of approximately one trillion drachmas in the corresponding six-month period last year, according to figures released by the Bank of Greece yesterday.
The central bank stated the increase this year originated entirely from savings accounts, with a slower pace in the rate of increase of time and demand deposits. During the same period, net investments by private individuals in state securities totalled 421 billion drachmas, against 138 billion drachmas last year.
Authorities said Friday a state-paid surgeon was under investigation after hospital accusations that he submitted patients to unnecessary operations. Authorities made the announcement after a hospital report showed Dr. Antonis Kritselis had conducted 25 serious operations which led to the death of 20 patients as a result of his "experimental" surgeries during 1989 to 1993. In many cases, the report added, vital organs were removed from non-cancer diagnosed patients. Dr. Kritselis has denied the accusations, saying he was being framed by his colleagues.
Authorities said he was referred to the National Board of Health disciplinary committee. Asked to comment on the accusations, Health Minister Dimitris Kremastinos said it was "dangerous taking action against medical professionals who are cleared of criminal charges after being dragged through the courts."