A.N.A. Bulletin, 01/06/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No. 901), June 1, 1996r

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Gov't announces comprehensive measures to cut back on public spending

The government yesterday decided on general principles for public sector spending policy, during a marathon cabinet meeting chaired by Prime Minister Costas Simitis.

The cabinet adopted a national economy committee series of proposals that includes gradually phasing out the number of civil servants and establishing a special squad of inspectors to carry out checks on all public services.

The main target of the new policy will be to secure funds to finance the government's social programme while at the same time speeding up the development performance of the Greek economy.

After the three-and-a-half-hour meeting, Mr. Simitis told reporters that the cabinet had decided on the general principles for monitoring public spending and ensuring that tax revenue is properly used.

"In order to achieve real convergence, the public deficit must be reduced in order to secure funds which will be used to boost investments and development," Mr. Simitis said.

Noting that the deficit could be controlled by increasing taxes, the premier said that the government had decided not to impose new taxes. "Therefore, the only solution is the dire need to control public spending," he added.

Although strict controls were in place in ministries, Mr. Simitis said, the same was not true for the broader public sector, local government, hospitals and other organizations, where the emphasis must be given to curb unnecessary spending.

Mr. Simitis spoke of the "rationalization" of the entire system of spending in order to make expenditures more effective. He expressed the conviction that the new principles and measures would enable the government to increase efficiency in the public sector and make taxpayers' money yield more.

The premier called on all state agencies and Greek citizens to help the government in its efforts.

National Economy Minister Yiannos Papantoniou said the committee's thirteen measures aim to provide a framework to curb spending and ensure funds to contribute to the reduction of the deficit and cover the basic needs of the Greek economy and society.

The measures include reinforcing the legal framework which outlines the obligation of all public sector bodies receiving funding from the state or the European Union to submit all necessary financial evidence to the relevant authorities for the approval of their budgets.

All agencies funded through the state budget will be obliged to submit a programme outlining significant reductions in funding over the next three years through the exploitation of their assets and restrictions on spending.

Another measure foresees the creation of a special branch of state inspectors entrusted with the financial and administrative checks on all state services, bodies which make up the public sector and bodies which are directly or indirectly funded by the state or have received Community funds and public corporations. The ministers of national economy and finance and competent minister will also have the power to commission consultants to carry out assessment studies of organization and operation, including assessments on budgets and spending, on all public bodies and to draw up proposals for their modernization. The measures aim to cut back on the number of employees in the public sector over a period of three years by legislating that the number of appointees to the state must not exceed 30 per cent of the total number leaving the state's employ. The education ministry is exempted from this measure.

To further this aim, inter-branch transfers will be facilitated, and a re-training programme will be established in order to ensure smooth adaptation to new jobs. Ministries will also be able to submit proposals for actions aiming to reduce their spending within the framework of the drafting of the 1997 budget.

[2] Changes to university entrance examination system announced

Education Minister George Papandreou yesterday announced the basic changes to the Greek secondary school examination system for entrance into higher education, saying that the new system was the result of "exhaustive consultations".

The new entrance system will come into force in 1999, with changes in senior high schools beginning with the new school year in September.

Mr. Papandreou said the first changes - the inclusion of a second compulsory language, possibly French - being made to the first year of the senior high school, while at the end of the year, pupils will be examined on a national level in the form of a general knowledge test. However, the grades of these exams will not count towards the final grade of the high school diploma, as the class will act as an adaptation year for the new system.

In the second senior high school year, a unified core of lessons is instituted, which will consist of Greek language and literature, mathematics, physics, chemistry, history and a foreign language.

Pupils will be examined in these subjects on a national level at the end of the year in the form of a general knowledge test, and their results will contribute to the final grade on the high-school diploma. They will also be examined on other lessons, b ut only in order to move on to the next class, and not for the diploma.

In the third and final year of senior high school, general knowledge tests will be taken on a national level in the same subjects as in the second year, as well as in three optional subjects.

The optional subjects are split into three groups: Ancient Greek, biology and sociology; Latin, political economy, physics; mathematics, chemistry, philosophy-psychology. Pupils will chose one subject from each group.

University departments will place emphasis on one of the optional subjects, and pupils wishing to study in that particular university will have to have received a good grade in examinations for that subject.

Pupils will chose their universities after their grades have been released and not before, as is the case at present. Mr. Papandreou said university places will increase.

The education minister said examinations for the five core subjects will last for three hours, with another three for the other subjects.

The draft bill with the measures is to be submitted in Parliament next week, after a discussion by the inter-party committee and the relevant bodies.

Mr. Papandreou said that a precondition for the success of the new measures was an increase in places at universities and technical institutes.

Mr. Papandreou said the implementation of the new system was combined with a series of interventions in the educational system including a radical restructuring and modernization of the Pedagogical Institute. The Institute will be restructured and modernized to be able to meet the need to support the new system and a more general change in second-stage education which, he said, was imperative, and would be supported with new and suitable staff.

The bill to initiate the national degree will include the changes in the structure of the Pedagogical Institute.

[3] First reactions

The initial reaction by parents appeared to be positive.

Vice-President of the Federation of Parents of Pupils in Attica Panayiotis Filis told reporters afterwards that in principle all that the minister said sounded positive. However, he discerned the danger of pupils starting to pursue high grades from the second grade of the senior high school which would be jointly taken into consideration for entry into universities or technical institutes.

The Coalition of the Left and Progress reacted negatively to the changes. An announcement by the party said the examinations system announced by the education minister was a mere variation of the existing system. Its whatever positive elements coincided with new serious side-effects for second-stage education.

It said only if the existing system was abolished and the doors of public Greek third-stage establishments opened immediately could the present situation change.

[4] Alavanos charges EU funds for education wasted

Coalition of the Left and Progress Eurodeputy Alekos Alavanos charged today that large amounts of European Union funds allocated for education were being wasted.

Of the 50.5 million ECU allocated by the EU for 1994, Mr. Alavanos said, only 22.7 million ECU was absorbed, leaving 73 per cent of the funds unused.

"Unfortunately, the situation for 1995 is similar," Mr. Alavanos said, citing European Commission estimates that "the level of expenditures is not expected to differ substantially from that of the previous year".

Mr. Alavanos expressed the hope that the Ministry of Education, within the framework of its restructuring of higher education in Greece, would take specific measures to resolve the situation.

[5] ND Political Council convinced elections are close

The main opposition party New Democracy's Political Council assessed yesterday that the country was "in a pre-election orbit" and that the government's work was in a state of complete disarray following a meeting chaired by ND leader Miltiades Evert.

The Council said the measures announced by Prime Minister Costas Simitis on Thursday regarding a new wage scale for civil servants were strongly indicative of a "pre-election period."

The Political Council discussed various possible early election scenarios and ascertained that a great deal depended on whether Mr. Simitis would be a candidate for PASOK's vice-presidency and on the outcome of the party's congress.

According to reports, many Political Council members believe that no safe prediction can be made on whether or not Mr. Simitis will win the vice-presidency and consequently the political scene remained fluid.

However, they said that in the event Mr. Simitis was elected Vice-President then the possibility of early elections would become more visible. Former minister George Souflias said the announcements on the unified wage scale were "announcements of a pre- election nature by a government which will not have time to implement."

The Political Council also discussed the latest developments in Turkey, Israel, Russia and Albania.

Party spokesman Prokopis Pavlopoulos said ND expressed its concern over latest developments in Albania but refrained from publicizing its position since it would await a report by OSCE observers.

[6] Simitis in Thessaloniki next week

Prime Minister Costas Simitis is to make a two-day visit to Thessaloniki next week, where he will be briefed on local issues. Reports say he will also announce government decisions concerning large projects in Thessaloniki and northern Greece.

The Macedonia-Thrace ministry announced that the prime minister will be met at the airport by Thessaloniki Mayor Constantine Kosmopoulos and other local officials, and will later speak at the Helexpo "Nikolaos Vellidis" conference center.

Mr. Simitis is due to visit the Macedonia-Thrace ministry on the morning of June 7, and will later make a speech on issues concerning Thessaloniki and northern Greece.

The prime minister will also visit the offices of the organization "Thessaloniki - Cultural Capital of Europe", where he will be briefed by the administrative council on the preparation and course of the projects for next year.

[7] Romeos briefs German official on Greek-Turkish developments

Alternate Foreign Minister George Romeos held talks with German Parliament Foreign Affairs Committee President Karl Heinz Hornhus yesterday, briefing him on Greece's position on recent Greek-Turkish developments.

Mr. Romeos told the German official that the postponement of the scheduled meeting between Foreign Minister Theodoros Pangalos and his Turkish counterpart Emre Gonensay in Berlin on June 3 was due to Ankara's intransigence and to the disputing of international treaties, as well as instability prevailing in Turkey.

He said Greece wanted stability and peaceful co-existence which, however, was being undermined by Turkey - an associate of the European Union - since Ankara did not recognize international treaties.

An announcement by the foreign ministry said Mr. Hornhus shared most of the Greek views.

[8] Kinkel plans to meet Pangalos, Gonensay in Berlin

German Foreign Minister Klaus Kinkel intends to hold separate meetings with his Greek and Turkish counterparts Theodoros Pangalos and Emre Gonensay on the sidelines of the NATO conference in Berlin starting on Monday June 3, diplomatic sources said. The sources said the time of the meetings had not yet been set due to the extremely "dense" programme.

Since time margins are narrow, the meetings, if they take place, will be brief and will aim primarily at stressing the concern of German diplomacy over developments in the Aegean.

According to the sources, Bonn was particularly alarmed after the Greek government's decision not to go ahead with a scheduled meeting between Mr. Pangalos and Mr. Gonensay in Berlin, which it has communicated to Athens and Ankara through diplomatic channels.

Mr. Kinkel, who will return from a tour of Uzbekistan and Kazakhstan today, reportedly wishes to back the proposals of NATO Secretary-General Javier Solana on implementing confidence-building measures between Greece and Turkey and contribute personally to defusing tension.

Meanwhile, according to a Reuters dispatch from Brussels, NATO, alarmed that tensions in the Aegean could trigger an armed clash between Greece and Turkey, is pressing its two southeastern members to set up a structure for preventing any row spiraling out of control.

Alliance diplomatic sources said NATO Secretary-General Javier Solana, who visited Ankara last week, had indicated he was willing to help both sides improve relations in an area of extreme strategic importance to the West.

NATO wants both countries to agree to have monitors on each other's ships, set up a telephone "hotline" between the two capitals through NATO's Brussels headquarters, and make more use of information garnered from alliance surveillance aircraft.

"There is immense behind-the-scenes pressure going on, but the whole thing is very delicate," a top European diplomat said.

Greece and Turkey almost came to blows last January when Turkey disputed Greek sovereignty over the islet of Imia in the eastern Aegean.

Athens scrapped a planned meeting of the two nations' foreign ministers next week in Berlin on the fringes of the biannual meeting of NATO foreign ministers after a Turkish warship hit a Greek patrol boat near the islet.

Greece accused Ankara of continuously disputing Greek territory in the Aegean Sea.

[9] European Parliament c'tee to examine amendments to MEDA

The EU's MEDA programme, which provides financing to Mediterranean countries, is to be re-examined on June 10 by the European Parliament's Foreign Affairs Committee, along with the relevant amendments which have been submitted.

Amendments submitted by PASOK Eurodeputy Yiannos Kranidiotis ask for the respect of territorial integrity and of external borders and for the respect of international treaties to be set as a precondition for the provision of funding. Mr. Kranidiotis also called for Turkey to be excluded from the MEDA programme for as long as the programme's funding regulation exists, as applies to Cyprus and Malta.

In another amendment, Mr. Kranidiotis stressed the need for funds relating to each country to be clearly stated.

[10] Greece takes delivery of first US P-3 Orion naval aircraft

The first of six P-3 Orion naval aircraft donated by the United States arrived in Greece yesterday.

The official ceremony for its induction into the 353rd Division at the Elefsina Air Base was attended by Chief of the Air Force General Staff Lt.-Gen. Georgios Antonetsis and Chief of the Navy General Staff Vice Admiral Leonidas Paliogiorgos.

During their speeches, the two men spoke of the capabilities of the new aircraft, which further ensure the protection of the Aegean area, particularly in view of the present condition of Greek-Turkish relations.

The first P-3 plane arrived in Greece with a US crew. Greece has already received another four P-3 planes from the United States which are currently at Hellenic Aerospace Industry (EAB) installations and are to be used for spare parts.

The new planes were donated to Greece by the US navy, while the Greek navy has undertaken expenses for the general inspections. The two pilots and the aircraft's mechanic will be members of the Air Force, while the rest of the crew will be members of the Navy.

[11] Tsohatzopoulos: party congress precursor to electoral success

PASOK's party congress will be the springboard for the party's victory at the October 1997 polls, Mr. Tsohatzopoulos told reporters yesterday after a meeting with the PASOK Central Committee Secretary Costas Skandalidis.

He declined to comment on whether he would be standing for the post of PASOK Vice-President or on whether the creation of such an office was necessary in view of the improved health of Andreas Papandreou.

[12] Albanian ethnic Greek party divided over tactics for second round of voting

In open conflict with his party's president, the Secretary-General of Albania's Greek Human Rights Union Party (HRUP) Thomas Mitsios yesterday called on the country's election committee to recognize the many violations in last Sunday's polls and asked for a rerun in 15 constituencies.

His statements to the media immediately followed an announcement Thursday by HRUP President V. Melios, revoking the party's decision to boycott a second round of voting this Sunday.

Meanwhile, two HRUP candidates - Thanasis Drossos in Argyrokastro and Kostas Makariadis in Premeti - said they will not take part in repeat elections on June 2, regardless of the party's final decision.

The HRUP won two seats in the first round of the controversial elections in Albania last Sunday.

[13] Coalition leader comments on PASOK

Coalition of the Left and Progress leader Nikos Constantopoulos said the government and the ruling PASOK party had embarked on a "peculiar" pre-election campaign to "win the battle of delegates at the party's congress."

Speaking in Iraklion yesterday, Mr. Constantopoulos said the government was trying to convince the Greek people that it existed with announcements and talk of promises.

Replying to a questioner on the issue of the OTE digital telephones contract, Mr. Constantopoulos said justice should complete a judicial investigation without political interventions and expediencies.

[14] Papandreou meets with PASOK youth organization secretary

Ruling PASOK President Andreas Papandreou last night met with the party's youth organization secretary, Tonia Antoniou, at his Ekali residence.

The meeting focused on the organization's national conference which starts today. Mr. Papandreou handed a message to Ms Antoniou for the conference.

Speaking to the press after the meeting, Ms Antoniou said Mr. Papandreou's health was good.

[15] President receives new ambassadors

In three successive meetings, President Kostis Stephanopoulos yesterday received the credentials of the new ambassadors of: Britain, Sir Michael John Llewellyn Smith; Yemen, Mohamed Abdullah Elwazir; and Paraguay, Oscar Cabello Sarubbi.

Also present at the ceremony were the Alternate Foreign Minister George Romeos and the Secretary-General of the Presidency of Greece Emmanuel Gikas.

[16] Thessaloniki Cultural Capital projects awarded

Another three major projects of the Cultural Capital Organization totaling 9.5 billion drachmas were awarded yesterday.

The projects are to be completed by summer 1997.

The theater of the Macedonian Studies Society, which the AVAX-GNOMON company has undertaken to renovate for 2.4 billion drachmas, will be ready to host the Cultural Capital's inaugural ceremony on January 1, 1997.

The task of restoring the Lazars Convent building and its extension with a new wing for the creation of the Cultural Center of Western Thessaloniki will cost 5.12 billion drachmas.

Lastly, completion of the project of renovating and modernizing the "Olympion" cinema (costing 1.98 billion drachmas), which will host the headquarters of the Thessaloniki Cinema Festival, has been set for May 1997.

[17] Isolated Georgian Greeks able to tune in to ET-1 next week

Ethnic Greeks living in remote areas of the Black Sea in Georgia will as of tomorrow be able to enjoy the Greek and foreign satellite programs transmitted by the state-run ET-1 television network.

Reception has been made possible by the National Institute for the Reception and Resettlement of Expatriate and Repatriated Greeks which has installed a satellite receiver and transmitter in the mountainous area of Halka.

The project cost a total of $25,000 and was financed by the foundation, whose president, George Iacovou, will inaugurate the service in Georgia tomorrow.

Similar satellite receivers will gradually be installed in other areas of the former Soviet Union.

[18] Decision on pensions postponed to next week

A decision which was to be taken on the readjustment of base-line pensions has been postponed for next week, after a meeting held yesterday to discuss the possibility of increasing pensions between Prime Minister Costas Simitis, National Economy Minister Yiannos Papantoniou, Finance Minister Alekos Papadopoulos and Labor and Social Security Minister Evangelos Yiannopoulos.

Reports had been leaked on Thursday that the government was leaning towards a monthly cash increase of lower pensions, roughly equal to two daily wages, or 11,000 drachmas. After yesterday's meeting, Mr. Yiannopoulos said "whatever is heard is not always true."

The labor and social security ministry has said it is in favor of pensions being gradually brought into line with 20 daily wages by the end of 1997, which would result in future increases in pensions which would be equal to those gained by unions in collective bargaining agreements.

However, pensioners and the General Confederation of Workers of Greece (GSEE) are demanding pensions to be made equal to 20 daily wages immediately, from July 1, 1996, and the abolition of New Democracy's "anti-insurance" laws which made pensions equal to 16.8 daily wages.

Unionists have warned that they will increase mobilizations if the government does not fulfill PASOK's pre-election promises and does not satisfy their demands.

Commenting on the issue, Political Spring party spokesman Notis Martakis said "the anxiety of pensioners has been extended anew today through the government's procrastination and its inability to provide a solution to a matter which has taken on dimensions of a national tragedy."

[19] Avlona protesters occupy building in protest over proposed land-fill site

Residents of the Avlona municipality took over the Attica Prefecture Union of Municipalities and Communities (ESDKNA) building in Athens yesterday morning, forcing employees to leave the building.

Roughly 200 residents had gathered outside the building holding black flags in protest at the environment ministry's decision to create a land-fill in their area.

The Avlona Municipality and neighboring municipalities and communities warned they will fight "tooth and nail".

Avlona Mayor Dimitris Kyriakou said mobilizations will continue over the long weekend, and did not rule out the possibility of the residents blocking the Athens-Lamia national road and the Athens-Thessaloniki railway line without prior warning.

ESDKNA President Athanasios Karoutzos expressed his sadness at yesterday's developments. "I believe that we live in a democratic country, where the rights of everyone and of every social group which believes justly or unjustly that it is being treated unfairly, are claimed and satisfied through institutional bodies and with procedures foreseen by the Constitution and by laws," Mr. Karoutzos said.

"In this case, the event (of the occupation of the ESDKNA building) appears like fratricide. For the first time, self-administration is turning against self-administration. On its part, ESDKNA feels proud for the procedures it has chosen and for the work it has carried out or is carrying out for the good of the simple resident of the Attica basin. Transparency, and determination for the protection of public health, are the only factors of our every move," Mr. Karoutzos added.

The president of ESDKNA concluded that the crucial nature of the situation regarding the handling of waste "obliges us, respecting the right to live of four million citizens, to push for immediate and livable solutions."

[20] Tsohatzopoulos announces new measure to curb non-payment of debts to municipalities

Interior, Public Administration and Decentralization Minister Akis Tsohatzopoulos told reporters yesterday that as of 1997 no citizen would be able to receive tax status documentation without having previously paid off any outstanding debts to municipalities.

He said this development would be included in a bill to be tabled in Parliament in June. According to ministry assessments, the settlement concerns citizens having outstanding debts to municipalities, but primarily businesses whose activities require frequent use of tax status documentation.

Mr. Tsohatzopoulos said that the measure would serve to increase municipalities' revenues and also satisfied a long-standing demand of the Central Union of Municipalities and Communities of Greece (KEDKE).

He also announced that the bill anticipates the creation of municipal departments in municipalities having over 100,000 people, as well as permanent status being granted to municipal and community staff on contracts of an indefinite duration at their re quest.

The bill also provides for cheaper loans being granted to municipalities by the Deposits and Loans Fund.

[21] Prinos oil-field output down

Petroleum exports from the Prinos oil-field are down, according to data by the Kavalla central harbor authority.

From the beginning of the year, 100,000 tonnes of crude oil have been exported to the French port of Fos, while 50,000 tonnes were carried to Pachi in the Megara region. About 650,000 tonnes were exported to France over the same period last year. After two successful "internal" drillings carried out this year at the "mother" oil-field in Prinos, Thasos, the daily output of petroleum has increased and more exports are expected to be made in summer, primarily to France, as well as supplies for Greek refineries.

[22] Greek trade fair in Albania expected to bolster Greek SMEs presence

A large trade exhibition of Greek products in Albania next month is expected to attract the interest of the neighboring country's consumers, given the increased business activity in that country over the past few years.

The exhibit, entitled "Euromachinery," is scheduled for June 27-30 at the Albanian capital's convention and exhibition center. The event is being sponsored by the European Union. Among the products featured at event are Greek-made machinery, building materials, office equipment and computers. The deadline for participants is June 15. Some 120 small-and medium-sized Greek production companies currently operate in Albania, with a total investment of about $120 million, a significant figure for that country.

[23] OA's Athens-New York celebrate 30th year of the route with bubbly

Passengers flying Olympic Airways (OA) on the Athens-New York route were treated to champagne yesterday as Greece's national carrier celebrated the 30th anniversary of its first transcontinental flight to the United States. The bubbly was accompanied by a letter from OA President Nikos Blesios, thanking passengers for their confidence in the airline and assuring them that the state carrier's sole objective is to continuously improve passenger services. Since June 1, 1996, OA has carried out 22,679 flight s to and from New York.

[24] Public prefers to invest in 12-month state securities, figures show

Investors continue to have confidence in state securities in drachmas with an initial duration of over one year, according to figures released yesterday by the Bank of Greece.

According to the figures, investors placed a total of 1.128 trillion drachmas in state securities between January and April this year, compared to 744 billion drachmas in the same four-month period of 1995.

By contrast, investments in securities with a duration of less than one year were down against the same period of 1995.

More specifically, in the first four months of 1995, investments in three- and six-month securities totaled 444 billion drachmas; the corresponding figure for 1996 was just 218 billion drachmas.

The total value of outstanding treasury bills and state bonds with a 12-month duration stood at 5.727 trillion drachmas at the end of April this year.

Also at the end of April 1996, savings deposits totaled 10.562 trillion drachmas, time deposits 3.005 trillion drachmas and demand deposits 1.142 trillion drachmas.

Meanwhile, the value of banknotes in circulation reached 1.692 trillion drachmas.

[25] National Bank governor in Cyprus

The governor of the National Bank of Greece, Theodoros Karatzas, arrived in Cyprus yesterday to attend the annual general assembly of the bank's subsidiary on the island republic.

Mr. Karatzas is heading a high-ranking National Bank delegation and during his official visit will meet with Cypriot President Glafcos Clerides, Archbishop Chrysostomos, the island republic's finance minister as well as with the Central Bank of Cyprus'

End of English language section.