A.N.A. Bulletin, 19/12/95

From: "Greek Press & Information Office, Ottawa Canada" <grnewsca@sympatico.ca>

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No. 768), December 19, 1995

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Parliament begins budget deliberations

A five-day debate on the 1996 state budget opened in Parliament last night with principal government speaker Costas Diamantis saying the proposed budget aimed at a tidy administration "in a state not always used to spending in a productive manner."

The debate is expected to conclude Friday evening with a vote.

He said the budget's aim "should be the creation of a state working better and costing less." He further said this could be painful because "it required conflicts with vested interests and dangerous sectarian trade unionism."

In addition, Mr. Diamantis said Greece's economy was gradually being transformed into an economy for productive investment.

On the other hand, main opposition New Democracy party principal speaker Costas Karamanlis said the 1996 state budget did not serve the nation's convergence programme in accordance with the Maastricht Treaty, but was pushing the Greek economy in the opposite direction and away from convergence programme targets. He said the government handled attainment of convergence with a short-sighted and narrow accounting approach.

Political Spring speaker Costas Hadzidimitriou criticized the government and ND of following and continuing to follow the same economic policy model, which he said contained the sperm of failure.

Communist Party of Greece (KKE) speaker Gerasimos Aravanis said 1996's budget "bears the seal of the multinationals." He said leading state functions such as the ratification of the state budget were absolutely a formality, since they were imposed by agencies and multinationals of the European Union and expressed their interests.

In an announcement yesterday, the Coalition of the Left and Progress (Synaspismos) said the 1996 budget abandoned government promises on supporting education, health and the environment, but perpetuated a policy of austerity at the expense of civil servants, while it also compressed society's living standards and dealt a blow to social protection and the insurance system.

Synaspismos' announcement said the effort to combat tax evasion and the policy of establishing sources of income was being abandoned in essence, while a tax-free status, involving to astronomical figures, was maintained for state securities.

The Parliamentary debate will continue today with addresses by deputies and ministers.

Arriving in Parliament last night, PASOK deputy and former minister Costas Simitis said the Greek economy should maintain its steady course and not be affected by political developments. He said the debate on the budget should send a message that the convergence programme remained the guiding axis of macro-economic policy and that social justice was the guiding concept of PASOK's policy.

[2] Labor unions criticize budget

Representatives of the General Confederation of Greek Workers (GSEE), the Civil Servants' Supreme Administrative Council (ADEDY) underlined trade unions' positions on the budget yesterday in Parliament.

GSEE President Christos Protopapas said unions concentrate their criticism of the budget on three points: continuation of the austerity programme, with two staggered 2.5 per cent wage increases for public sector workers and low pensions; tax policy, which they said is unfair towards workers, and low social spending which will not allow for necessary changes in health, insurance, education and support of the unemployed.

Trade union representatives submitted a memorandum of their views to Parliament, and also forwarded an open letter to all deputies, inviting them to show their solidarity with workers by voting against the budget provisions regulating salaries and pensions.

[3] Large investment for polypropylene production wins approval

The government's inter-ministerial economic committee yesterday approved a 130 million dollars investment by the Public Petroleum Corp. (DEP) for a polypropylene production unit, after a presentation by Industry Minister Anastasios Peponis.

Consumption of polypropylene in Greece is presently covered by imports, totaling 55,000 tonnes in 1994. A domestic production facility is expected to save the nation approximately 40 million dollars a year.

Participating shareholders will be DEP and its subsidiaries with 5 per cent, the Aspropyrgos Hellenic Refineries (ELDA) and the Hellenic Fuel and Mineral Oils Group (EKO) with 35 per cent and 60 per cent respectively.

Polypropylene is used in the production of plastics, membranes and fibres.

Two units will be constructed - one for separating polypropylene and propane scheduled to operate at ELDA's facilities in Aspropyrgos, while the other unit will produce the final product at a facility to be built and operated at EKO's installations near Thessaloniki.

[4] Direct foreign investment listed at just under 1.1 billion dollars for '95

Direct foreign investment in Greece amounted to just under 1.1 billion dollars this year - slightly up from 1994's figure - making it the least popular European Union member-state for such investment, according to the annual UNCTAD report, released yesterday.

However, the long-term investment picture is somewhat brighter, as accumulated foreign investment in the country totaled more than 18 billion dollars in 1994, above Austria, Denmark, Ireland and Portugal, some of Greece's EU partners.

Fixed capital investment by foreign companies in Greece amounted to 7.5 per cent of gross capital investments in 1993, above the Community average (5.6 per cent) and the world average (4.3 per cent).

The UNCTAD report is entitled "Multinational companies, direct foreign investment and international competition." It was unveiled at United Nations' delegations around the world, including the UN's Athens office.

[5] Premier's health condition remains unchanged, political developments expected in January

The latest bulletin on Prime Minister Andreas Papandreou's health, issued shortly after 8 p.m. yesterday stated that the premier's general condition remained unchanged with the most recent infection fully under control. In addition, the bulletin said his breathing was not assisted by a respirator, while cardiac function was unaffected.

Earlier, a midday bulletin said the patient had no fever, while antibiotic treatment was continuing and that he was undergoing periodic kidney dialysis.

According to informed sources, Mr. Papandreou woke up early yesterday morning and sat for a short time in an armchair before undergoing dialysis with a new method which reduces the risk of infection.

Sources said the premier breathed throughout the evening and yesterday morning without the aid of a respirator, adding that when a problem arises his breathing is assisted only with an oxygen mask.

One of the main concerns of the premier's doctors, sources said, was the possible appearance of new infections which they fear will be difficult to deal with, because Mr. Papandreou's immune system is considerably weakened. For this reason, the physician who read the evening bulletin said transferring the premier to a different wing in the hospital was being considered, in order to minimize the risk of such infections.

Referring to reports on initiatives by President of the Republic Kostis Stephanopoulos, concerning the situation resulting from the prime minister's illness, government spokesman Telemahos Hytiris said yesterday that all the president's actions were within his constitutional powers.

Mr. Hytiris refused to say whether it was within the jurisdiction of the head of state to call a political leaders council meeting, or even if the government intended to recommend one.

"Nothing of the sort has happened," he said.

The government spokesman gave the same reply when questioned on whether the prime minister intended to resign, and declined comment on scenarios referring to his replacement.

Mr. Hytiris confirmed press reports that Minister of State to the Prime Minister Antonis Livanis had a private meeting with the premier, but said he was unaware of its content.

According to the spokesman, the premier had also requested a meeting with Foreign Minister Karolos Papoulias, but was informed that the minister was abroad.

Press reports claim Mr. Stephanopoulos is planning to request a meeting with Parliament President Apostolos Kaklamanis and ruling PASOK party secretary Costas Skandalidis.

Mr. Skandalidis said he had no scheduled meeting with the president.

Such speculation came after President Stephanopoulos met late last week with Education Minister and the premier's son, George Papandreou, as well as Coalition of the Left and Progress leader Nikos Constantopoulos.

In an interview with the newspaper TA NEA yesterday, the education minister said that since his father could not assume his duties, a new prime minister had to be elected by the Parliament group immediately after the Christmas holidays. He indirectly, b ut clearly, confirmed reports that he intended to speak to his father himself on the issue of the premier's replacement.

"I feel the duty to discuss with my father in all sincerity how I perceive of the present situation," he stated.

He added that President Stephanopoulos "inspires confidence with his stabilizing role these days."

In statements to the newspaper Ethnos, National Economy Minister Yiannos Papantoniou also came out in favor of the premier's replacement immediately after the holidays, saying the economy and society could not wait for long. He predicted that former minister Costas Simitis and Defence Minister Gerasimos Arsenis would contest the post.

Former minister Evangelos Yiannopoulos, who saw the president yesterday, said he was perfectly knowledgeable of the Constitution, and was observing the limits prescribed.

He predicted that January would be a month of very rapid political developments, noting that no internal party procedure for the prime minister's replacement had be defined so far.

Meanwhile, main opposition New Democracy party leader Miltiades Evert said that "despite the fact that there is no prime minister and government, ND respects institutions and the Constitution and by participating in the budget (Parliament debate) proves that it is a party of responsibility."

[6] Evert requests special Parliamentary debate

Main opposition New Democracy leader Miltiades Evert yesterday asked for the holding of a special Parliament debate at a party leaders' level to focus on Mr. Papandreou's "absence from the political scene due to his state of health."

However, Mr. Evert's demand was rejected by Interior, Public Administration and Decentralization Minister Akis Tsohatzopoulos, currently deputizing for the premier, as well as by Political Spring (Pol.An) President Antonis Samaras and Communist Party of Greece (KKE) Secretary-General Aleka Papariga.

Addressing a Parliament debate on the 1996 state budget, which began yesterday evening, Mr. Evert said a special session should be held Saturday after the vote on the budget, due to take place Friday evening.

ND's president said a "political, institutional and state problem" resulted from Mr. Papandreou's "illness and absence."

Mr. Evert added that if his demand is rejected, the main opposition party would make use of its rights, implying that ND would submit a censure motion against the PASOK government.

The ND leader also said there was a "political vacuum," a problem leading to political anomaly. He said a debate on the 1996 budget was being held for the first time without the premier.

"We respect the prime minister's illness and stand by his family's anxiety, but the Greek people cannot live through these events," Mr. Evert said.

Furthermore, the ND leader said the socialist government was non-existent, while ruling PASOK's executive bureau was rambling and potential successors were "tearing each other apart."

Mr. Evert said that after 30 days without the prime minister's presence, the problem ceased being political, but is becoming institutional.

In response, Mr. Tsohatzopoulos said the sole political vacuum existing was the main opposition party's substantive intervention.

The interior minister countered that Andreas Papandreou's government was living up to the constitution and law with great sensitivity and would uphold its responsibility toward the Greek people collectively.

He said the main opposition party was probably annoyed by the government's effectiveness in confronting major problems.

Referring to the Madrid summit, Mr. Tsohatzopoulos said the European Union's major dilemmas were tackled recently. He said the main opposition party was not entitled to give the impression there was an issue where it did not exist.

Mr. Samaras indirectly rejected Mr. Evert's proposal, saying that an initiative in that direction by his party would render it an accomplice. He said there was political liquidity due to the prime minister's illness, adding that there was great responsibility for initiatives leading to an exit from the crisis.

Ms. Papariga said that apart from the premier's health problem, she considered raising such an issue disorienting.

Late last night, Mr. Evert sent a letter to Parliament President Apostolos Kaklamanis requesting that he convene a special Parliament debate concerning the issue "of the prime minister's prolonged illness and the need for his substitution."

He asked for the debate to be held Saturday.

"The prolongation of the non-substitution of the prime minister leads to political anomaly, which takes on dimension of a political crisis," Mr. Evert added in his letter.

[7] Papoulias: Greece an active participant in Bosnian peace effort

Greece is playing a very active role in Bosnian peace efforts, Foreign Minister Karolos Papoulias said yesterday after attending a conference on disarmament and confidence-building measures concerning the war-torn Balkan region.

"Greece is at the epicenter of such deliberations," he said, before announcing a new meeting with his Bulgarian and Romanian counterparts in Sofia early next month. Mr. Papoulias said Austria, Hungary and Slovakia will also be invited to the Sofia gathering, which follows up a similar meeting in Ioannina earlier in the year.

"In the same context of Balkan initiatives, Greece is soliciting other countries concerning a Balkan conference, on the model of the one in Belgrade in 1988," the Greek foreign minister said.

During the conference in the German municipality of Petersburg, Mr. Papoulias held private meetings with the foreign ministers of Albania, Alfred Serreqi, and FYROM, Stevo Crvenkovski.

Describing his meeting with Mr. Serreqi as "substantial," Mr. Papoulias said they agreed on "a new phase of high-level meetings."

Referring to his meeting with Mr. Crvenkovski, the Greek foreign minister said it was "constructive," and expressed a view that "both sides are looking forward to a productive second phase of talks..."

He said official meetings scheduled between the two sides in New York "showed that the process is moving fast, which we desire and seek..."

"The FYROM side has realized the positive role Greece can play both in its approach to Europe, and its survival," he added.

Regarding the peace process for Bosnia, Mr. Papoulias warned against excessive optimism, saying it will go through difficulties, and cited Greece's civil war experience.

"There is great difficulty in dealing with territorial problems. If disputes are not solved and there is not required progress in reducing armaments and in confidence-building-measures, it will be very easy to end up in armed conflict again," he added.

[8] Gov't satisfied with its participation at Madrid summit

The government yesterday expressed satisfaction over the participation of the Greek delegation at the European Union summit in Madrid and launched a stinging attack against the main opposition New Democracy (ND) party. Press and Media Minister Telemahos Hytiris said Greece's interests had been safeguarded in Madrid, referring to decisions taken concerning Cyprus' accession to the EU, the Cyprus problem and the common European currency.

Mr. Hytiris described as "unacceptable" a ND announcement calling on Interior Minister Akis Tsohatzopoulos to walk out of the summit in protest against statements by Turkish Premier Tansu Ciller, who reportedly threatened to annex the Turkish-occupied north of the island republic. Mr. Tsohatzopoulos was deputizing for Prime Minister Andreas Papandreou at the Madrid summit. Mr. Hytiris said ND leader Miltiades Evert was "exporting irresponsibility," adding that his stance constituted "a departure from reason."

The spokesman said the government was trying to learn the exact content of Ms. Ciller's statements.

"We are in contact with the Cyprus government and there will be an appropriate response," Mr. Hytiris added.

[9] Papariga commends Russian communists for electoral success

Communist Party of Greece (KKE) Secretary-General Aleka Papariga sent congratulatory messages yesterday to Gennady Zyuganov, the president of the Russian Communist Party and to the secretary of the Working Russia Party, Viktor Tyulkin, after results of Russia's parliamentary elections were tallied.

In her messages, Ms. Papariga said the communist parties' showings during the weekend election confirms an appreciation for the "conquests of socialism in the former Soviet Union," as well as the Russian workers' and people's confidence in the communist s for confronting the new situation and for revival of the Soviet Union.

[10] Thessaloniki industrialist released after ransom payment

The owner of a food processing company from Thessaloniki was kidnapped last Friday and released yesterday after a ransom of 250 million drachmas was paid.

According to reports, the kidnap victim is identified as Alekos Haitoglou, co-owner of the "Macedonian Halva" company. Mr. Haitoglou was kidnapped on his way to the Sindos area of Thessaloniki from his home in the Oraiokastro area, reports state.

Kidnappers reportedly took him to Lamia, from where they demanded a ransom payment from the victim's brother.

After three days of negotiations, Mr. Haitoglou's brother delivered the ransom yesterday.

Five hours later he was freed. No official announcement was issued by the police until late last night.

The suspects are still at large.

[11] Italian man arrested

Police arrested an Italian national wanted in Italy and other countries for alleged narcotics and forgery offenses.

According to informed sources, Angelo Leone, 44, is implicated in serious organized crime-related offenses and is wanted in connection with at least 10 offenses related to the trafficking of heroin and cocaine.

He is also wanted in connection with five counterfeiting charges.

According to Interpol, Leone, who was arrested in Athens Sunday, is a leading member of Italy-based organized crime.

[12] Greece, FYROM to continue talks next January

Following an invitation by UN special mediator Cyrus Vance, the permanent UN representatives of Greece and the Former Yugoslav Republic of Macedonia (FYROM), Christos Zacharakis and Ivan Tosevski respectively, agreed to continue discussions in New York on Jan. 11, 1996.

A statement circulated regarding the meeting that took place between the three men on Dec. 15 states that "the parties exchanged ideas regarding the various sides on the implementation of the intermediary agreement, and about Article 5 in particular."

The meeting lasted for several hours, while Mr. Vance met with each country's ambassador separately, before the meeting began.

[13] 'Solidarity Caravan' begins new humanitarian mission to Bosnia

The "Solidarity Caravan" will start a new humanitarian economic aid mission for orphaned children in Bosnia-Herzegovina.

It is a non-governmental and non-profit organization founded two years ago by Eurodeputies Paraskevas Avgerinos (PASOK), Panayiotis Lambrias (ND) and Alekos Alavanos (Synaspismos).

Bosnian film producer Emir Kusturica expressed solidarity for the initiative and to this end will offer receipts of his film "Underground" when it is screened at a downtown Athens cinema on Thursday.

The film will officially open in January.

In another development, 100 orphaned children from Bosnia, aged between seven and 12, will be hosted in Kavala for one month as of Jan. 5.

The Kavala municipality has undertaken the safe transfer of the children from Bosnia as well as their return.

During their stay in Kavala, they will attend regular lessons and be taught Greek, at their own request.

[14] News bulletin in Greek inaugurated in Belgrade

Yugoslavia's first news bulletin in Greek was due to be broadcast yesterday from the capital city's "Politika" radio station. The initiative was taken by the Greek Embassy's press office in co-operation with the "Politika" station.

The news bulletin will be broadcast daily in the afternoon and will be comprised of political, economic and cultural new reports, written by Greek television station "ET-3" reporters.

Broadcasting costs for the first six months have been met by a sponsor, the "Protofanousis" fruit company in Thessaloniki.

The first news bulletin was to be read out by head of the Greek Embassy's press office Spiridon Hatzaras.

Serbian government officials and the Greek charge d'affairs in Yugoslavia, Mihalis Spinellis, were present at the opening.

[15] Black Sea Co-operation Council energy centre opens in Sofia

The Regional Energy Centre of the Black Sea Co-operation Council (BSCC) was inaugurated in Sofia yesterday in the presence of Prime Minister Zan Videnov and European Union Energy Commissioner Christos Papoutsis.

The center's aim is coordination of energy policies of BSCC member-states, including Greece.

Mr. Papoutsis said creation of an "energy task force" for co-operation with EU, to be realized shortly, must be encouraged as it is favorable to the Union's strategic interests, the security of its fuel and energy supplies as well as co-operation with third countries.

Mr. Papoutsis also spoke at a concurrent international conference on the "energy map," already signed by 50 countries as well as development of energy in the Black Sea region.

[16] Culture ministry debuts on Internet

The culture ministry's pilot programme "Odysseus," connected with the world-wide computer network Internet, is ready to transmit information to Greek expatriates and foreigners interested in learning about Greece and its culture.

Greece's culture ministry, along with its French and Spanish equivalents, is among the first European culture ministries to link up with Internet, the most prolific computer network available with more than 60 million computer users in practically every nation of the world transversing its electronic menus.

The programme will disseminate information on Greek culture, museums, archaeological sites and monuments around the country as well as on modern art, music, theater, dance, films, books, literature and photography from modern Greece.

[17] Papantoniou: Convergence programme will be completed by '98

National Economy Minister Yiannos Papantoniou said yesterday that Greece's convergence programme with other European economies will be completed in 1998, warning however, that because ability of member-states to join the third phase of the Economic and Monetary Union (EMU) will be assessed on 1997's performance, it will be very difficult for Greece to be among the 'first round' of countries to enter on January 1, 1999.

The third phase will last three years, during which parities of national currencies will be set permanently and irrevocably.

The national economy minister said that as of January 1, 2001 national currencies will be replaced by a common currency, recently coined the 'EURO.'

Member-states participating in this phase will issue securities denominated in EUROs, which will circulate in 2002, and on July 1, 2002, will replace currencies of all countries participating in EMU, Mr. Papantoniou added.

He said Greece's foreign exchange policy is not related to what will happen in the Community, adding that all countries meeting criteria established by the Maastricht Treaty will automatically enter the third phase of EMU, without negotiations.

[18] Concretum, Tsimenta Halkidas creditors reach agreement

An agreement has been concluded between the Calcestruzzi Co., now renamed Concretum, and creditors of "Tsimenta Halkidas S.A." which was countersigned by the company's representatives, according to statements by Industry Minister Anastasios Peponis yesterday at the government's inter-ministerial economic committee.

The agreement puts an end to a long-term discrepancy pre-occupying the state, National Bank and other banks, as well as other cement manufacturers.

According to terms included in the agreement, Concretum is obliged in principle to maintain existing jobs and inform creditors-shareholders in the event its shares are transferred to third parties. It also confirmed that claims by the National Bank and individual commitments of present-day shareholders and representatives of "Tsimenta Halkidas S.A." stand firm.

The amount immediately payable by Concretum to "Tsimenta Halkidas S.A." increased from 32 billion drachmas to 36 billion drachmas.

End of English language section.