A.N.A. Bulletin, 23/12/95

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No. 772), December 23, 1995

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Parliament passes 1996 budget

The state budget for 1996 was passed by Parliament last night, with 169 deputies voting for and 126 voting against.

All of the PASOK deputies present voted for the budget as did ex-PASOK deputy Kyriakos Spyriounis, while the 107 main opposition New Democracy deputies present, the 10 Political Spring and Communist Party of Greece deputies all voted against.

Independent deputy Mihalis Papaconstantinou said he was present but abstained from voting on the budget.

Speaking on behalf of ailing Prime Minister Andreas Papandreou, Interior, Public Administration and Decentralization Minister Akis Tsohatzopoulos said the restructuring effort would continue without deviations in 1996, and that next year would be characterized by the best macroeconomic performances achieved by the Greek economy in almost two decades.

Addressing Parliament during the debate on the new state budget last night, Mr. Tsohatzopoulos referred to all sectors of the government's work, making special reference to the economy and placing emphasis on the successes of the economic programme, such as the decrease in inflation to a single digit for the first time in 20 years, the decline in bank interest rates by 7-8 percentage units and the restriction of tax burdens shouldered by the socially weaker classes.

He said that in the 1996-1997 period "we will devote a considerable part of our energy to structural changes." He referred specifically to the redefinition of the public sector, gradual denationalization, modernization and the renewal of public administration, the ranking and salary scales of civil servants, members of the military and the police, the improvement of administrative capacity for public utilities and the composition of the regional state.

Mr. Tsohatzopoulos said Greece's presence at the European summit in Madrid was successful, adding that a vital issue of Greek concern was safeguarded at Madrid, concerning the relations of member-states participating from the start in Economic and Monetary Union (EMU) and those joining later before the passage to the third stage. Therefore, he said, Greece had all the capabilities of joining the common European currency by 1999.

He said that negotiations for accession to EMU would be political and Greece should meet it strengthened by its economic performances and the extent of its adjustment.

Mr. Tsohatzopoulos said the future of Europe would also depend on the course of the intergovernmental conference due to start in Italy in March, adding that what was important for Greece was that it was reaffirmed in Madrid that negotiations for the accession of Cyprus to the EU would start six months after the intergovernmental conference.

[2] Evert calls for elections

Earlier, main opposition New Democracy leader Miltiades Evert called for elections, in order to alleviate what he said was the nation's "state of misery and crisis."

The opposition leader began his speech by stating that the country has been without a prime minister for one year, and without a government.

Mr. Evert said ND would not only ask for a censure motion but use other means if a solution to Greece's political impasse had not been given when Parliament reopens after the holidays. In addition, he called incidents surrounding the premier's illness " politically and ethically" unacceptable.

In referring to the budget, Mr. Evert called Finance Minister Alekos Papadopoulos' speech "monetarist." He said the Greek economy's major problem is its large public debt, warning that it stands at 121 per cent of GDP.

The ND president called the government's convergence programme to catch up with the rest of the European Union "unacceptable," which this year sets a goal of 2.2 per cent in GDP growth for 1995-99. He said such figures translate into divergence from the EU, an increase of unemployment to 15 per cent, closing of some 150,000 small businesses and non-existent infrastructure.

In closing, Mr. Evert referred to transparency in the budget-making process, saying that five days allocated in Parliament for discussion are not enough. He proposed that the finance minister bring the budget for discussion in June, before Parliament's recess, to focus on the first six-month period.

In responding to Mr. Evert, National Economy Minister Yiannos Papantoniou reassured his audience that 1996 will be the first year of Greece's convergence programme with the EU. He forecast a growth rate of 4 per cent, cited by Mr. Evert, will occur in 1 996 with "PASOK's realistic policy."

In terms of absorption of community funds, the national economy minister said National Bank director Lucas Papademas assured him that during the November-December period some $2 billion (some 500 billion drachmas) were absorbed, a sum that more than covered the government's goal for 1995. He also said PASOK's policy is for all revenue gained through OTE's partial flotation to be invested in modernization programmes within the public utility, and not included in the general budget.

[3] Political Spring proposes amendments

Political Spring party leader Antonis Samaras submitted a party proposal of an amended budget for 1996, with developmental and social aims. According to his proposal, priority is given to the recovery and development of the national economy, taking into account the necessary fiscal discipline necessary due to the country's movement towards Economic and Monetary Union.

He said the measures are measures of improvement, competitiveness and development, such as the increase of the sliding of the drachma by six per cent instead of one per cent, a reduction of employer offers by 15 per cent, a reduction in fuel prices for farmers by 20 per cent, an increase in the budgeting of public investments by 100 billion drachmas and the promotion of an effective privatization programme.

Communist Party of Greece (KKE) Secretary-General Aleka Papariga characterized the budget as being anti-popular and tax-clobbering. "It is a budget based on blackmail strategy and on the most violent promoting of anti-popular measures," she said. "It is a budget of the whip."

Ms. Papariga accused the government of serving private interests, and stated there was only one indicator doing well in Greece, and that was the profits of industrialists, merchants, manufacturing companies and banks. She stated the government's aim was to create new strategically important measures that ensure the country's full submission to multinational capital interests.

Although top PASOK cadre and former EU commissioner Vasso Papandreou mostly came out in favor of the proposed budget, saying it will be applied by PASOK within a climate of "unity, democracy and solidarity," she criticized a lack of funding for education and health care.

Ms. Papandreou requested a reduction in social inequities through internal redistribution of funding sources and application of widespread modernization.

PASOK deputy and former minister Vassilis Kedikoglou indirectly criticized Gerasimos Arsenis' tenure as national economy minister, while commending Costas Simitis' later tenure in the post.

National Defence Under-secretary Nikos Kouris defended the large outlays for defence, which have reached 3.46 per cent of GDP and 7.43 per cent of 1995's state budget.

Proposed defence allocations for 1996 are slated to reach 7.72 per cent of the state budget, Mr. Kouris said, citing "dangers from the east."

In addition, the defence secretary said a new wage scale for military officers will be presented during the first few months of 1996. He also criticized what he said were "circles" sabotaging Greece's domestic arms industry.

ND parliamentary spokesman Dimitris Sioufas attacked both Costas Simitis and Gerasimos Arsenis, described as the front-runners for assuming PASOK's top leadership post, for what he said were unattainable promises, "just as those during their ministerial terms."

[4] Greece, Bulgaria sign Nestos river agreement, agree to open new border points

Foreign Minister Karolos Papoulias signed two agreements here yesterday, settling the management of the Nestos River waters and establishing three new crossings on the Greek-Bulgarian border.

According to the Nestos River agreement, Greece will be getting 29 per cent of the flow of the river's waters for the duration of the 35-year accord, while the two countries undertake to improve the quality of waters according to international standards and European Union directives.

The signing of the agreement settles along outstanding problem in relations between Athens and Sofia, according to diplomatic observers.

The new border crossings, to open until the end of 1998 at the latest, will be at Drama-Goce Delcev, Xanthi-Rudozem via Echinos, and at Komotini-Markaza, extending to the Bulgarian cities of Kercali and Haskovo.

During his one-day lightning visit, Mr. Papoulias held talks with his Bulgarian counterpart Georgi Pirinski, and Bulgarian Prime Minister Jean Videnov.

"The new border crossings are not between Greece and Bulgaria, but between Bulgaria and the European Union," said Mr. Papoulias at a press conference after the signing of the accords.

Both foreign ministers described the agreements as "historic", stressing the contribution of Prime Minister Andreas Papandreou to the resolution of outstanding Greek-Bulgarian issues.

The two men reaffirmed the resolve of the two countries to implement the Burgas-Alexandroupolis oil pipeline project, while Mr. Papoulias reported that following a meeting yesterday with Greek businessmen participating in the project, and the results of the Russian elections, "the messages are encouraging".

Diplomatic sources said "the linking of all Bulgarian cities with the cities and ports of northern Greece, and vice versa, is a strategic option of the two countries".

The two men also discussed coordination in the framework of plans for the reconstruction of Bosnia-Herzegovina. Mr. Papoulias stated he expected a repetition of the tripartite meeting with his Bulgarian and Romanian counterparts in Ioannina earlier this year.

"It is a common realization that Greek-Bulgarian relations constitute a steady foundation of inter-Balkan, Black Sea, and pan-European co-operation. Our friendship is exemplary, and nobody is excluded. Our doors are open," he added.

[5] Tripartite meeting in January, Papoulias says

Greece foreign minister said he was extremely pleased upon returning from Sofia after the bilateral agreements. He called the agreement a significant milestone in Greek-Bulgarian relations, adding that joint organization of a pan-Balkan conference was agreed upon with his Bulgarian counterpart.

Mr. Papoulias said a continuation of a meeting between the foreign ministers of Romania, Bulgaria and Greece in Ioannina last autumn is scheduled for January in Sofia. He said the conference is open to other Danube-bordering countries, with the idea of a Balkan/Danube nations summit with the participation of countries such as Hungary, Austria and Slovakia.

Mr. Papoulias also referred to the issue of the natural gas pipeline, which he said is proceeding satisfactorily.

"I think that on such issues we'll soon have good results with the signing of a protocol between Russia, Bulgaria and Greece," he said.

In response to a question on the proposed Burgas-Alexandroupolis oil pipeline, Mr. Papoulias, said another trilateral protocol between Russia, Bulgaria and Greece is pending.

In reference to recent statements by Turkish Prime Minister Tansu Ciller that Greece is reportedly supplying and supporting the Kurdistan Workers' Party (PKK), Mr. Papoulias cited the pre-election season in Turkey, "that is why every time there are sycophantic charges against Greece that it co-operates with PKK and terrorist groups, statements that upset me."

"We have repeatedly protested to our European Union partners and the United States and have made clear our anger with such slander of our country," he said.

Mr. Papoulias filled in for ailing Premier Andreas Papandreou, who was scheduled to sign the agreement with Mr. Videnov.

[6] Doctors bring premier's infection under control

An infection plaguing Prime Minister Andreas Papandreou appeared to be under control with the aid of the prescribed therapy, according to an evening medical bulletin on the health of the premier yesterday.

His breathing function was periodically supported by a respirator, while his cardiac function remained unaffected.

Replying to questions, the doctor who read the bulletin said the fear of new complications was always present, but at the moment the patient was not running a fever and things "must be on a good course".

Early yesterday, an attending physician said that in his 32nd day of his hospitalization, the prime minister's condition was fluctuating and without fever.

"The existence or not of fever in a patient who has been for several days in an intensive care unit is neither positive nor negative," he told hospital reporters.

Hospital sources said Mr. Papandreou was taken off the respirator early in the morning and later, assisted by doctors, was allowed to sit in an armchair for a while.

The sources said the deterioration of the premier's condition Thursday was due to a new infection, which caused a slight fever and difficulty in breathing.

The cause of the infection, the same sources said, was enterococcus. They added that this microbe could be treated with strong antibiotics, which were being administered to Mr. Papandreou, and that because high concentrations of the microbe had been found in his blood, the doctors were concerned that if the infection, which was currently under control, became generalized, there would be a risk of septic shock.

A medical bulletin issued by the Onassion Centre at midday said the antibiotics being administered appeared to be having effect over the last 24 hours.

The premier's physicians have continuously assured that, despite the successive infections, his heart is functioning satisfactorily.

[7] Arsenis, Simitis say they will contest premiership, both say will safeguard party unity

Defence Minister Gerasimos Arsenis and former minister Costas Simitis, who met for an hour yesterday, confirmed they would be candidates for premiership.

The meeting, which took place in the office of the secretary of PASOK's parliamentary party, Dimitris Beis, was described as very useful and constructive by both, who added that they would make every effort to safeguard party unity.

"Our common conviction is that we shall proceed together for a united PASOK, for a government which will exhaust the four-year term, for a PASOK that will win the next election," said the defence minister. Mr. Simitis said their common aim was to prepare Greece for the 21st century. He acknowledged there were disagreements on certain issues, but it was always possible to find common ground and carve out a joint course.

"PASOK must win the election, must exhaust the four-year term, and must remain the dominant political force in Greece in the years thereafter," he said.

Mr. Arsenis said the selection would be made by the party's competent organs at the appropriate moment, and added they would both honor the result and aim at achieving effective unity at both government and party level.

Mr. Simitis met with PASOK secretary Costas Skandalidis yesterday morning, and discussed the relevant procedures in case the party needs to proceed to a replacement of the prime minister.

[8] Haralambopoulos admits he will contest leadership

Former minister and current PASOK deputy Yiannis Haralambopoulos publicly announced for the first time yesterday that he will be a candidate for the premier's position, after a meeting with Mr. Arsenis.

In response to press questions, Mr. Haralambopoulos said he will stand by opinions he has expressed until today, adding that he will "support them as a candidate."

The one-time national defence minister said his discussion with Mr. Arsenis took place within a friendly context and reached an agreement on the ruling party's unity and PASOK's future. He also said he may meet Mr. Arsenis again, if necessary.

On his part, the national defence minister said he honors and respects Mr. Haralambopoulos, as he is a veteran PASOK deputy, adding that both men agreed the party's unity and future must be protected.

[9] President, Niotis send Christmas message to expatriate Greeks

President Kostis Stephanopoulos yesterday sent a Christmas and New Year message to Greek communities abroad, underlining their substantial contribution towards Greek national issues and hailing the achievements of the recently-held World Council of Overseas Hellenism.

He said that the teaching of Greek, with the assistance of the Greek state, should be intensified, particularly for the younger generations of expatriate Greeks.

In a similar message, Foreign Under-secretary for Expatriate Affairs Grigoris Niotis expressed optimism over the course of World Council of Overseas Hellenism.

[10] Reports of Turkish planes over Crete denied

Reliable sources at Hellenic air force headquarters vehemently denied rumors yesterday that a large number of Turkish fighters flew over Crete.

The same sources said two Turkish RF-4 "Phantoms" flew at a distance of 30 miles from the island, a violation of the FIR Athens air traffic control.

Two Greek Mirage F-1 fighters were immediately sent up to intercept the Turkish aircraft and escort them out of Greek air space.

[11] Arsenis: Greek troops in Bosnia integral part of efforts for international peace

National Defence Minister Gerasimos Arsenis said yesterday that Greece's presence was essential in international efforts aimed at peace and co-operation, and that, apart from contributing troops to the Bosnia peace mission, Greece was already playing a role in Bosnia's economic and social restructuring.

Speaking to reporters, Mr. Arsenis said Greece's military presence in Bosnia helped promote the country's political presence not only in developments in Bosnia but in former Yugoslavia and the Balkans in general.

Mr. Arsenis reiterated that the mission constituted the country's participation in a peace effort in which NATO and other countries, such as Russia, participated. He said the mission did not take place to impose peace but to support the peace agreement and this country's new start. The Greek mission is composed of volunteers trained for this task.

He expressed his conviction that all would go well, but conceded that "dangers always exist. But we believe they are very small". He said the Greek troops participating in the NATO force set up to implement the Bosnia peace agreement were in no immediate danger.

He added that the location in which the Greek transport battalion would be active was decided by the Greek government.

Meanwhile, the frigate "Hydra", the two Hellenic Navy mine sweepers "Kleo" and "Avra" and two C-130 transport aircraft left this morning for Ancona and Rimini in Italy to join the NATO peace force.

The first soldiers belonging to the land force, a small number, will leave in the next few days for the region where the Greek contingent will operate, 30 km west of Sarajevo. The remaining men will depart in the first fortnight in January.

In another development, Mr. Arsenis inaugurated an infants' nursery at the Air Force's 251 General Hospital yesterday morning which will serve the needs of the Air Force's civil and military personnel.

[12] Patras bombers get reduced sentences

An Athens appeals court yesterday reduced the prison sentences handed down to three Palestinians found guilty of causing a bomb explosion in Patras in 1991, in which six people died.

Assad Nubani and Ibrahim Al Kairat had been sentenced to life imprisonment plus 25 years and Aoud Al-Kalil to nine-and-a-half years for the blast.

The court, sitting for the last few weeks in Korydallos women's prison, reduced the sentences of Nubani and Al Kairat to 25 years imprisonment and of Al-Kalil to three years.

According to the prosecution, the target of the bomb attack was the British Consulate in Patras. The bomb went off prematurely however, killing six people including the Palestinian who was carrying it. The three Palestinians have denied all involvement in the blast, claiming that the Israeli secret service, Mossad, was behind the explosion.

[13] Sifounakis will go ahead with draft bill

Tourism Minister Nikos Sifounakis said yesterday he was determined to support his controversial draft bill reorganizing relations between the tourism ministry and the National Greek Tourism Organization (EOT).

He told reporters yesterday the present bill is concerned only with necessary structural changes. A new draft bill is to appear in four months' time which will be concerned with the improvement of the institutional tourist framework, and is to be worked out by a special committee with the contribution of private sector bodies.

Various tourist agencies have expressed objections to the bill because, they say, they were not consulted on the content.

The minister denied accusations that he is trying to dissolve the Greek National Tourism Organization's (EOT) assets, stating he is attempting to safeguard their correct development.

Meanwhile, EOT Secretary-General Apostolos Kosonas announced it is still too early for pessimism or hysteria regarding whether or not the next tourist season will develop poorly. Regarding a proposed Athens private casino licence, it is estimated that a solution will be found in the early months of 1996, as the bank concerned will have completed its assigned study on the matter.

An office of EOT will be created in Thrace and head-quartered in Komotini.

According to a ministry announcement, prefectures in the Thrace region will fall under the bureau's jurisdiction.

In another development, Tourism Minister Nikos Sifounakis decided that EOT's information bureau in Rethymnon will be upgraded and turned into a regional bureau.

[14] Greece brings up textile support issue at Council of Ministers

The Council of Fisheries Ministers ratified the customs union with Turkey without discussion yesterday.

However, Greece submitted a statement at the Council of Ministers on the delay in Community support for the Greek textiles industry which had been combined with Greek consent for customs union.

The statement, submitted by Industry, Research and Technology Under-secretary Dinos Vrettos, said:

"Greece would like to point out that its consent for customs union was combined with the known joint statement by the Council and the Commission on March 6, 1995, which clearly had the meaning of recognizing the fact that the Greek textiles industry is sustaining serious and unfavorable consequences not only as a result of the outcome of the Uruguay Round but also from the customs agreement subject to ratification itself."

"We note with emphasis its unacceptable discreet handling compared to the European Union's correct position towards similar or corresponding problems in the textiles sector in another EU member-state," the statement said.

"In light of the above, Greece will not obstruct the final ratification of the customs agreement with Turkey today but believes that the issue of support for the Greek textiles industry by the EU remains open and deems that the Council and the Commission should take all necessary measures as soon as possible to schedule a special support programme for the Greek textiles industry. Such a decision will be consistent with its evident and special problems and with the substantive meaning of the joint statement made by the Council and the Commission on March 6, 1995," it added.

The next edition of the Bulletin will circulate on Wednesday,

December 27, due to the Christmas break.

We would like to wish our readers a happy and safe CHRISTMAS.

End of English language section.