A.N.A. Bulletin, 23/01/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 794), January 23, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Hard work the recipe for success, Simitis tells new Gov't

Costas Simitis chaired his first cabinet meeting as prime minister yesterday, shortly after he and his new government were sworn in in the presence of President of the Republic Kostis Stephanopoulos.

Mr. Simitis told his government that hard work was the order of the day, to prepare Greece for the 21st century.

During an in-camera meeting that did away with the traditional pomp and media exposure of first Cabinet meetings, Mr. Simitis described his government as one of work, sensitivity, meritocracy, ethos, daring and efficiency. He asked ministers to avoid provoking public opinion with statements and behavior that did not measure up to their office.

"The new course will be one of unity, renewal and victory, in order to serve out PASOK's four-year term and emerge victorious in the next (general) elections (in 1997)," Mr. Simitis said.

He said the Cabinet would meet again next Monday to examine the policy statement it would table in Parliament for the required vote of confidence.

Mr. Simitis said the Cabinet would hold regular sessions every two weeks, accelerating to weekly meetings.

"We do not have the luxury of delay and postponement," he said. "This government must solve the problems concerning the Greek people and prepare Greece for the 21st century."

He added that his government would continue the task of the previous PASOK administration, and stressed the role of broad dialogue with social bodies so as to achieve the widest possible social consensus.

He said the streamlining of the new Cabinet was considered "necessary in order to make it more flexible" and representative of all the regions of the country, the different political sensitivities and views.

Mr. Simitis called for the upgrading of the role of the PASOK Parliamentary Group and urged its members to co-operate with the government so that it may succeed in its governmental task.

He said the next Parliamentary Group meeting would be on Tuesday, February 6, after the tabling of his government platform and vote of confidence.

Mr. Simitis paid tribute to his predecessor Andreas Papandreou, the founder and president of the ruling Panhellenic Socialist Movement (PASOK), saying his contribution had been decisive in the shaping of the successful PASOK policy.

[2] New Cabinet

The new government, which was announced Sunday night, is bringing in 10 new faces and has 11 fewer members than the previous and last Papandreou government.

Nine of the 10 newcomers are in undersecretarial posts, while newcomer Dimitris Reppas takes over from Telemahos Hytiris at the press and media ministry and as government spokesman.

This is the first PASOK government to be headed by someone other than party founder and president Andreas Papandreou, who has been in hospital for more than two months.

The key portfolios of defense (Gerassimos Arsenis), economy (Yiannos Papantoniou) and finance (Alekos Papadopoulos) are unchanged, as are the portfolios of education (George Papandreou), the interior, public administration and decentralization (Akis Tsohatzopoulos), environment, town planning and public works (Costas Laliotis), and the Aegean (Antonis Kotsakas).

The new government brings Theodoros Pangalos back to the foreign ministry and Vasso Papandreou into the government to head a new ministry for development, which merges the old ministries of trade, tourism, and industry, energy and technology.

[3] Opposition goes on the offensive

The main opposition New Democracy party appeared to be unwilling to offer a period of grace to the new Simitis administration, and said it would not allow room for damage to be done to the economy and national issues.

New Democracy spokesman Vassilis Manginas, speaking after a meeting of the ND Political Bureau yesterday, said the new government was the continuation of the "previous failed government which increased unemployment, caused the shutting down of the small and middle size businesses, downgraded the national education system, reduced farmers' income and led national issues to impasses."

Mr. Manginas said radical solutions should be given to problems in order to achieve modernization and rapid economic development, adding that "the ND will persist and intensify its policy of responsibility and proposals."

ND intends to submit to Parliament seven proposals including the review of the constitution, a law for the establishment of national councils for education and foreign policy, and the prime minister's question time in order to upgrade the Parliament's role.

Meanwhile, in response to press reports that the current government is the smallest in recent years, a statement from honorary New Democracy president and former prime minister Constantine Mitsotakis stated that the ND governments sworn in on April 11, 1990, August 8, 1991 and August 2, 1992 totaled 38, 36 and 35 members respectively.

Meanwhile, a Communist Party of Greece (KKE) spokesman yesterday cautioned against expecting "better days" from the new PASOK government led by Costas Simitis.

"Whoever hopes that better days will come with a new government under Mr. Simitis will quickly land in the conservative reality and anti-popular policy which will continue with undiminished intensity with this PASOK government," a KKE spokesman said.

Coalition of the Left and Progress leader Nikos Constantopoulos said the present period was transitional and the replacement of Andreas Papandreou by Costas Simitis was an important episode in this transition.

Speaking at a party meeting at the Acropole theater yesterday, Mr. Constantopoulos assessed that developments inside the ruling PASOK party in this transitional period would affect political life in its entirety and expressed the view that the final shaping of correlations and structure in PASOK after Andreas Papandreou was still far away and could not be predicted.

He said his party would exercise opposition to the new government's programme, clarifying that the Coalition would continue by itself and contest its return to Parliament when elections took place.

[4] Interest rates expected to fall further as two banks announce cuts

There were indications yesterday that interest rates would decrease further in both the inter-bank market and banks themselves, as two banks announced lower rates for loans.

Further interest rate cuts for state securities also appear likely.

The Bank of Piraeus announced a reduction from February 1 on interest on loans for working capital from 22.5 per cent to 21.5 per cent. Interest on personal loans has been reduced by three percentage points, from 29 per cent to 26 per cent.

Xiosbank announced a reduction in the basic business credit rate, from 21 per cent to 20.75 per cent. The reduction became effective today. The decrease in bank deposits and other public securities' interest rates is practically ensured, as long as doubts on whether the new government will follow a convergence programme to catch up with other European Union economies recede.

Approximately 450 billion drachmas in government securities were issued with an interest rate of 14.20 per cent, a figure experts say is a strong indication of the finance ministry's ability to reduce interest rates by the end of the month. Several bank s are already cutting rates, citing the normalization of the political scene. It is expected that other banks will reduce interest rates, providing the downward trend for interest and inflation rates.

[5] New FM Pangalos stresses PASOK foreign policy will not change

One of the first ministers to take over his post yesterday was the new foreign minister, Theodoros Pangalos, who said a foreign policy strategy should be formulated with the co-operation of all political and social forces.

Mr. Papoulias said the foreign ministry was not affected by changes in its leadership.

"The country's foreign policy has definite goals which are served by all officials being appointed in the ministry," he said.

Mr. Pangalos, who took over from Karolos Papoulias, said he and the former foreign minister had worked together for many years "in an effort to formulate a foreign policy which would ensure a dignified and self-autonomous course for Greece amidst international developments."

Branding this as "Andreas Papandreou's foreign policy," Mr. Pangalos said that he now participated in a new government in which Andreas Papandreou was no longer a member.

He pledged, however, to continue this policy with all his abilities and the help of those who will support him.

Stressing that a modern country's foreign policy should not be the concern of the foreign ministry solely, Mr. Pangalos said a foreign policy strategy should be formed in co-operation with all political and social forces. His list included Greek businessmen who can influence Greece's role in Central and Eastern Europe, the media, scholars and academics, the Parliament and Greek Eurodeputies.

Mr. Pangalos said that in the following days he would hold contacts with representatives of these sectors in order to determine what could be feasible and beneficial for the country's foreign policy.

[6] New ministers stress the beginning of a new historical cycle

The forging of this new government is the start to a new historical cycle, new government spokesman and Press Minister Dimitris Reppas said yesterday, during the handing over ceremony at the ministry.

"The government will complete its work and at the end of the four-year mandate another victory will await PASOK, a victory that will be in the interests of the people and the country," he said.

Shortly after the Cabinet meeting ended, the process of handing over ministries to incoming ministers began.

During the handing over ceremony at the ministry of commerce, Vasso Papandreou stressed the government's emphasis on growth and development.

"This is the first PASOK government without Andreas Papandreou, a government that has created many expectations and given us great responsibility towards the Greek people," she said.

"We must give the leadership a different ethos and expression and speed up the development rate while being socially sensitive at the same time. We will honor the Greek people's trust and I am sure that we will win the next elections," she continued.

Ms Papandreou will head a new 'super-ministry' for development, comprising the old ministries of industry, energy and technology, of tourism and of trade, and aiming to emphasize the development process in important sectors of the economy.

Interior, Public Administration and Decentralization Minister Akis Tsohatzopoulos said "the new government was responsible for completing the work to which Andreas Papandreou was committed."

He added that all government officials should give effective solutions to the problems of the time.

Meanwhile, during the hand-over of the ministry of agriculture, new minister Stephanos Tzoumakas said his priorities included the issues of the farmer's register, early retirement, the law on cooperatives, the regulation of matters concerning the use of land and the creation of more favorable terms for the purchase of land by farmers.

"I come to implement PASOK's programme. I know the difficulties and I will confront them in co-operation with all the sector's bodies," he said.

The restructuring of the social security system for farmers and an agricultural training programme also feature among Mr. Tzoumakas' priorities. "It is my aim for every prefecture to have a school where professional farmers will be trained," he said.

Speaking during the hand-over ceremony for the justice ministry, incoming minister and constitutional law professor Evangelos Venizelos said he had accepted the justice ministry portfolio as "a challenge".

"Justice must be the regulating factor for social life and social review," he said.

He said one of his priorities at the ministry would be the process of reviewing the constitution.

Andreas Fouras assumed the sports under-secretary position yesterday in place of former under-secretary George Lianis.

"Several significant issues remain open, as you have the honor and responsibility to be sports under-secretary during an Olympiad year," Mr. Lianis told Mr. Fouras.

He mentioned the Olympic Games in Atlanta, the 100 hundred years since the rejuvenation of the modern Olympic Games, Greece's candidacy for 2004 games, an Olympic cycling tour of Italy with three legs to be held in Greece and the world track and field championship scheduled for Athens in 1997.

Mr. Fouras said his priorities were the modernization of the legal framework for sports, working towards an athletics programme and the support of youth in sport.

[7] Papandreou's health remains stable

A medical bulletin issued yesterday described PASOK leader and former premier Andreas Papandreou's health as stable.

The bulletin said Mr. Papandreou underwent a bronchoscopy yesterday, which did not show endo-bronchial damage.

It also said Mr. Papandreou's body temperature was normal and he presented no indications of infection, while his breathing and kidney function were supported periodically. The bronchoscopy, which postponed Mr. Papandreou's daily physical therapy and kinesiotherapy, showed no complications on the right side of his chest, such as new hemorrhaging, the PASOK leader's attending surgeons were quoted as saying.

[8] Employers, unions deadlocked over new wage agreement, talks will continue

Yesterday's second meeting between employers' unions and the General Confederation of Workers of Greece (GSEE) on the signing of a general collective labor agreement for 1996 produced no results, as was expected.

The Federation of Greek Industries (SEB) and the Merchants Union (EESE) proposed two 3 per cent salary increases for 1996, claiming that inflation will drop to 5 per cent in December 1996.

The General Confederation of Small Manufacturers and Professionals (GSEBE) proposed two 3.5 per cent increases. These percentages are not acceptable to GSEE which is insisting on salary increases of at least 10 per cent.

On the question of a 35-hour working week, employers unions agreed to undertake a joint study with trade unions, despite saying that they reject the claim.

There is no clear indication as yet whether the new collective agreement to be concluded will be valid for one or two years.

Trade unionists said that during yesterday's meeting the industrialists raised the issue of deregulation for mass dismissals. GSEE rejects the claim outright.

[9] Vranitzky sends Simitis 'best wishes' on becoming premier

Austrian Chancellor Franz Vranitzky conveyed his "warmest wishes" on Friday to new Premier Costas Simitis.

The Austrian chancellor also passed on his Social Democratic Party's regards in a telegram, adding with Mr. Simitis' "long-term political experience, his ability and wide support that his party enjoys, he will successfully face challenges springing up i n the next few years for Greece and Europe."

Mr. Vranitzky also expressed his pleasure at what he said was a continuation of "a friendly and productive co-operation, which has developed over the past few years between Austria and Greece, at both a governmental level and party level; in bilateral is sues and European integration."

[10] Belgrade welcomes Simitis

Yugoslavia's Prime Minister Radoje Kontic sent his congratulations to his new Greek counterpart yesterday.

Mr. Kontic expressed the opinion that the new Greek premier would further contribute to development in the traditional friendly relations between the two countries and deepen co-operation for the benefit of both the Greek and Yugoslav peoples, peace and stability in the Balkans.

[11] FYROM leaders congratulate Simitis

Former Yugoslav Republic of Macedonia (FYROM) Prime Minister Branko Crvenkovski and Foreign Minister Stevo Crvenkovski sent telegrams to Prime Minister Costas Simitis and Foreign Minister Theodoros Pangalos yesterday congratulating them on the assumption of their new posts.

The local media considered the election of Mr. Simitis to be positive and characterized him as being a politician with pro-European policies, an ally of pragmatic solutions to problems with neighboring countries and a supporter of co-operation between Balkan countries.

They also characterized the appointment of Mr. Pangalos as foreign minister as a positive move, stating the new foreign minister was "a judge of Papandreou policies on Skopje matters."

Meanwhile, talks in Belgrade are continuing between representatives of the foreign ministries of the Federal Republic of Yugoslavia and FYROM regarding the improvement in relations between the two countries. The talks began last Friday, and are expected to produce preliminary results by the end of the week. According to Skopje state television, the talks aim at the establishment of diplomatic offices in the two countries.

[12] FYROM academic says Simitis will work towards better relations with Skopje

A leading figure on the political scene in the Former Yugoslav Republic of Macedonia (FYROM) said yesterday he hoped relations between Greece and its northern neighbor would be fully restored during the Simitis administration "since the new government does not need to dwell on the problems of the past".

Vasili Topurkovski, a former member of the Yugoslav government and a professor of international law at Skopje university, was speaking in Thessaloniki where he is on a private visit.

He did not rule out the possibility of having contacts with government officials in Greece in the future.

Mr. Topurkovski said he had a deep respect for the political abilities of new foreign minister, Theodoros Pangalos.

[13] Police continue search for puzzling disappearance of doctor

Police are continuing their inquiries into the disappearance of an Athens obstetrician, missing since Friday morning.

Police said they were conducting a wide-ranging investigation for Dr. Yiannis Politis, 51, who disappeared while on his way to an appointment with patients.

They said, however, foul play was considered unlikely as no one has contacted the physician's family in the four days since his disappearance.

The last person to see Dr. Politis was the concierge of his Kolonaki-area building.

According to reports, both of the physician's cars were found outside his residence, and no withdrawals or credit transactions appear to have occurred with his bank cards.

[14] Two rob navy base of 45 million

Two unidentified men dressed as commandos stole 45 million drachmas from the navy training command's management office at the Palaska army camp in Elefsina last night.

The two robbers managed to enter and leave the army camp almost unnoticed on a motorcycle.

The robbery occurred at 7:30pm.

[15] Greece, Morocco agree on tourism co-operation

Greece and Morocco agreed last week to boost co-operation in the tourism sector, following a visit to Greece by Secretary-General of the Moroccan National Board of Tourism Mr. A. Boumediene last week.

Mr. Boumediene was accompanied by representatives of the ministry of tourism and the federation of travel agents of Morocco.

The agreement provides for the exchange of experience in the field of tourism planning, co-operation on the possibility of establishing joint ventures and encouraging co-operation between professional tourist associations of the two countries.

The agreement was signed after a meeting the Moroccan delegation held with Greek National Tourism Organization (EOT) officials and representatives of various Greek professional tourist associations.

The delegation was also received by the minister of tourism.

A group of Greek tour operators will soon visit Morocco for a familiarization trip as will the president of EOT, on the invitation of Mr. Boumediene.

[16] EU approves funds to help save endangered bird

The European Union will finance a 120-million-drachma research programme, in co-operation with the Greek state, to observe the "Leptomyta", a species of rare bird.

The bird lives in a wildlife preserve at the Evros River delta for a short period of time every year.

The species originates in Siberia and spends the winter months in Morocco. In spring and autumn, the largest numbers of these birds are found at the Evros delta where they rest for a few weeks.

Ornithologists believe the "Leptomyta" is one of the rarest species on the planet, with their number estimated at about 50 worldwide and is in danger of extinction.

Implementation of the research programme started two weeks ago and the first mission of Greek and foreign ornithologists will establish itself at the Evros delta in March to observe the species in spring and autumn.

The Community programme, which the forestry department has undertaken to implement, aims at studying the bird to facilitate the tabling of a management plan with the EU and Greece to protect both the species and the wildlife preserves it lives in.

[17] Posidonia '96 shipping expo looks set to be biggest yet

Five months before the June 3 opening in Piraeus of Posidonia '96, confirmed bookings for this biennial international shipping exhibition are at their highest ever, and all the signs are of a record-breaking event in the making.

"Reservations of stand space at Posidonia '96 are running one-third higher than was the case at this stage with the 1994 exhibition," says Dimitra Michael, managing director of Posidonia Exhibitions S.A., "and we could well be looking at the largest Posidonia ever in terms of the total area taken by exhibitors."

Three new national stands - those of Austria, Monaco and Ukraine - have so far been booked, with two other newcomer national participations presently under negotiation.

A number of traditional national exhibits are being substantially expanded. The US is planning on at least 20 per cent extra space, as is Cyprus, and both Australia and France are taking a 15 per cent increased area. The leading British participation at

Posidonia '96 is also expected to be larger than two years back, Japan has reconfirmed its usual heavyweight presence, and, among other group participations, the national stand of Dubai is now three times its previous size. "We are also seeing a n encouraging inflow of first-time exhibitors of standing from around the world," says Ms Michael.

And there are "at least a dozen additional Greek supply and service companies" among the participants from over 50 nations who will be represented at the June 3-7 exhibition in the Port of Piraeus Authority's (OLP) waterfront exhibition centre.

Sponsors of Posidonia '96 are the Greek merchant marine ministry, the municipality of Piraeus, the Hellenic Chamber of Shipping, the Union of Greek Shipowners, the London-based Greek Shipping Co-operation Committee, the Union of Shipowners of Mediterranean Cargo Vessels, the Greek Shipowners Association for Passenger Ships, and the Union of Coastal Passenger ship Owners.

[18] Latest EBEA report says action urgently needed to bolster a still-fragile economy

Most businessmen hailed the election of Costas Simitis as the country's new prime minister, but the new government is already coming under pressure to resolve problems.

According to the latest report on the state of the Greek economy, released by the Athens Chamber of Commerce and Industry (EBEA) yesterday, the state of the economy, and specifically that of fiscal adjustment, remains fragile despite limited recovery and a decrease in inflation and interest rates.

Echoing recent reports by the Economic and Industrial Research Institute (IOBE) and statements last week by Federation of Greek Industries (SEB) President Jason Stratos and other heads of professional and employers' unions, EBEA's report said the new prime minister and the new government had to urgently take new initiatives for the economy, primarily of a structural nature, "otherwise at the end of 1996 reality and pressures by the European Commission will oblige Greece to take additional measures."

The report stressed the need to overcome "the lack of boldness on the issue of privatization to date and the slow rate of implementation of major projects" to facilitate higher development rates.

It said there were "uncertain prospects" for the 2.3 per cent development rate projected by the national economy ministry for this year.

Extensive reference is made to government predictions on public revenues, expenditures and public deficits in 1996, stressing that "none of these predictions has a great possibility of success."

If wage increases do not exceed inflation levels, the report says, inflation is expected to fall to about 7 per cent at the end of 1996 and 7.5 per cent in average annual levels.

There are also doubts as to whether interest rates can fall further.

The report said, however, the monetary and exchange policy "inspires confidence", and conceded that the current accounts deficit created no immediate problems.

The report said the biggest weakness in economic policy "is failure to restructure public administration, public corporations and state-run banks and the freezing of privatization."

End of English language section.