A.N.A. Bulletin, 09/07/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 932), July 9, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Greece, Romania reinforce close bilateral relations

Foreign Minister Theodoros Pangalos and his visiting Romanian counterpart Teodor Melescanu told a press conference yesterday that the high level of bilateral relations was confirmed and that the two countries aimed at strengthening co-operation.

The Romanian foreign minister said the most important aspect of his meeting with Mr. Pangalos had been agreement to further consolidate relations between their two ministries.

"Apart from the role Greece has to play within the framework of inter-Balkan co-operation and in the Balkan region, we place particular weight on the fact that Greece is the only Balkan state in the European Union; as such, its role in the development of relations with all European bodies is decisive," Mr. Melescanu said.

Mr. Pangalos said Greece wholeheartedly supported Romania in its bids to join NATO and the European Union.

On his part, Mr. Melescanu said he was grateful for Greece's support and stressed that he and Mr. Pangalos agreed on the issue of the enlargement of the NATO alliance.

"The enlargement should include all candidate nations," he said. He also thanked Greece for its support of Romania's bid to join the EU, adding that accession talks should begin at the same time with all the other Balkan countries, but end separately in relation to each candidate's economic indicators. The two foreign ministers also discussed bilateral and regional co-operation, in light of last weekend's inter-Balkan co-operation meeting in Sofia, and bilateral ties, including trade relations, which last year rose by 50 percent.

Balkan co-operation "has a future", Mr. Pangalos said, noting that prior to the Sofia conference, Bulgaria, Romania and Greece had established a working group to promote the idea. He also stressed that Greece had been working for some 20 years to make inter-Balkan co-operation a reality, with the help and counsel of such statesmen as Constantine Karamanlis and the late Andreas Papandreou.

Referring to the Sofia conference, he said it had succeeded in gathering all the Balkan nations, sans one (FYROM), as well as representatives from almost all the important international organizations and major countries of the western world.

The next inter-Balkan co-operation meeting is due to be held in Athens this autumn and will focus on co-operation in the fields of economy, technology, culture and politics.

Mr. Pangalos noted the strong ties between Greece and Romania on a bilateral level and in the context of joint efforts for regional co-operation, saying they were "exceptional".

He said he would brief Mr. Melescanu on Greek-Turkish relations and the Cyprus issue during the course of a dinner in his honor later yesterday.

Asked whether the issue of the inviolability of Balkan borders was put forward at the Sofia conference, Mr. Pangalos replied that the principles of the inviolability of borders and of international law were included in the principles of the inter-Balkan meeting.

He said Sofia was not the appropriate forum for a discussion of the issue, more so because Turkey was represented by an acting foreign under-secretary, he added.

Mr. Melescanu, who is on an official two-day visit to Greece, was earlier in the day received by President of the Republic Kostis Stephanopoulos and Prime Minister Costas Simitis. He is due to meet tomorrow with National Defense Minister Gerassimos Arsenis, Parliament President Apostolos Kaklamanis, Development Minister Vasso Papandreou and National Economy Minister Yiannos Papantoniou.

[2] Greece achieves greatest economic adjustment in EU

National Economy Minister Yiannos Papantoniou said yesterday that Greece had achieved the greatest degree of fiscal and macro-economic adjustment of all European Union member-states in the last three years.

He spoke after the European Union Finance and Economy Ministers' Council (ECOFIN) session yesterday. The Council adopted recommendations toward 12 member-states which, on the basis of 1995 data, show budget deficits exceeding the limit of 3 per cent of GDP - one of the necessary criteria for their participation in the third phase of Economic and Monetary Union (EMU).

Mr. Papantoniou expressed satisfaction with the positive results of the government's economic policy, which are reflected in the ECOFIN recommendation, stressing that "since 1993, Greece has covered two-thirds of the distance separating it from the Maastricht criteria for participation in EMU."

He referred to European Commission President Jacques Santer's proposal regarding a Confidence Pact on Employment, expressing the hope that "with the Irish presidency, the EU will manage to pass from words to deeds."

Along with a number of other EU counterparts, Mr. Papantoniou was critical of Britain and Germany's positions, which, according to the Greek minister, "prefer to sacrifice long-term targets on the altar of short-term expediencies," putting up obstacles to the saving of community funds for the financing of development initiatives in the sectors of inter-European networks, small-and-medium-size enterprises, as well as research.

In a heated debate during the official luncheon, during which the Santer proposal for the disbursement of ECU 1.2 billion until 1999 was discussed within the framework of the existing fiscal perspectives, the Greek minister said "the limits of fiscal discipline, in order to secure implementation of measures that aim at the creation of new jobs, must be exhausted."

Finally, as Mr. Papantoniou reported, the Council adopted a proposal by Greece and Luxembourg for the establishment of a team of representatives of the 15 ministers and the Commission that will examine in detail, and possibly revise, the Santer proposal, so that a final decision is adopted at the informal ECOFIN Council session, scheduled to take place in Dublin, on Sept. 21.

The recommendation to Greece reads as follows: "The Greek government must end, as soon as possible, the present situation of excessive deficit... The Council recommends the adoption of measures on a long-term basis, including, particularly, the setting of annual targets... In this framework, the Council notes the importance attributed by Greece to 1998 as a target-year.

"The Council finds that Greece has achieved a reduction of the fiscal deficit from 12.1 per cent of GDP in 1994 to 9.2 per cent in 1995, which is in line with the Council's recommendation for that year. It also notes that this reduction is the result of more effective controls on financial outflows to the accounts of the social security system, while regarding the central government deficit, the target was overshot. The Council expresses its satisfaction for improvements in transparency, but calls on the Greek government to fully utilize the progress achieved, by further intensifying its efforts for fiscal rehabilitation.

"The public debt indicator increased only marginally in 1995, to 111.5 per cent of GDP, and remains therefore, much higher than the reference target level envisaged in the Treaty. For 1996, the Greek government has set as a target a deficit in the order of 7.4 per cent of GDP. The budget is being executed under conditions of economic development, according to the initial assumptions made during its drawing up.

"The Council recommends to the Greek government, according to the recommendations already made concerning the fiscal deficit for 1996, and in order that it succeeds in correcting the deficit in the period until the end of 1997, that it seeks the fiscal adjustment and the reduction in the public debt indicator envisaged in the Convergence Programme down to 4.2 per cent in 1997. The attainment of this target will require a much more ambitious budget for 1997 in relation to those of recent years, despite the fact that the prospective boost to economic growth in Greece may lead to exceeding the predicted growth rates on which the Convergence Programme is based.

"The Council recommends to the Greek government that it continues to intensify its efforts for improving the effectiveness of the revenue administration and the tax-collection mechanism, as well as the extension of the tax base. Control of the budgets o f the enterprises in the broader public sector must also be strengthened. The Council calls on the Greek government to achieve further progress in controlling primary expenses."

[3] Name issue talks expected to restart Thursday

Direct talks between Athens and Skopje concerning the name of the Former Yugoslav Republic of Macedonia (FYROM), and under the auspices of United Nations special mediator Cyrus Vance, will be repeated on Thursday, sources said yesterday.

According to same sources, the latest round of talks, which are based on Article 5 of an interim agreement signed between the two countries last September, are expected to end before the end of July.

Athens objects to the use of the name "Republic of Macedonia" by the former Yugoslav republic, saying it implies territorial designs on its own northern province of the same name.

Previous talks have so far failed to come up with a name solution acceptable to both parties.

[4] Turkey says its favors extension of CBMs

Turkish Foreign Under-secretary Onur Oymen met with Greek Foreign Minister Theodoros Pangalos over the weekend within the frame work of the inter-Balkan conference in Sofia, reiterating Ankara's desire for "dialogue" with Greece.

Turkish foreign ministry spokesman Omer Akbel said yesterday that "parallel to regional issues, bilateral relations were also discussed" and reiterated Turkey's desire for dialogue and resolving Greek-Turkish problems with peaceful means.

Replying to a question on whether a new date for a meeting had been set, Mr. Akbel said a new government was being formed in Turkey and that "a government decision is necessary for such a meeting."

Referring to confidence-building measures (CBMs) in the Aegean, Mr. Akbel said Turkey favored their extension, adding that "Ankara is optimistic on this issue."

Mr. Akbel said the Balkan conference was a "pleasant development", while its proclamation on co-operation between countries in the region was "important."

"Ankara is determined to support the new period starting in the Balkans and hopes the principles of co-operation and good neighborliness will prevail in this period," he said.

Referring to the absence of the Former Yugoslav Republic of Macedonia (FYROM) from the conference, Mr. Akbel said that "we hope the obstacles faced in Sofia will be overcome next time and the new meeting will take place with the participation of all the Balkan countries."

[5] Clinton: Greek-Turkish conflict would be a 'tragedy'

In a letter to leading members of the expatriate Greek community in the United States last week, US President Bill Clinton said a possible armed conflict between Greece and Turkey would be a tragedy for both countries, as well as for US interests in the region.

Mr. Clinton expressed concern over recent accusations by both countries regarding violations of their airspace and over what he called "provocative actions" during military exercises "in, or near Cyprus".

The US president stressed that Washington strongly supports the need to refer the issue of Imia to the International Court of Justice at The Hague, stressing that differences in the Aegean should be resolved on the basis of existing international agreements, with complete respect for Greece's territorial integrity and without the use or the threat of the use of violence.

The letter adds that Washington is in constant contact with both Athens and Ankara, with the aim of resolving differences concerning Imia and generally reducing tension in the area. Mr. Clinton condemned Turkey's recent dispute of Greek sovereignty over the inhabited island of Gavdos, which lies south of Crete, characterizing the actions of Turkish officials as having been "inappropriate" and stressing that the United States has publicly announced it considers the island Greek.

Referring to the Cyprus issue, Mr. Clinton expressed his understanding of the negative consequences the problem is having on Greek-Turkish relations and on stability in the area, and spoke of his personal commitment to contribute to a solution, adding t hat he is sending a special envoy, Richard Beattie, to the island republic for this reason.

Mr. Clinton stressed that arms sales to Ankara were necessary because of Turkey's important position, and because of threats it faces from certain neighboring countries. He made indirect references to the danger faced by Greece, saying the United States expects Ankara to use its military equipment for defensive reasons and not to threaten friends and allies of the United States.

Mr. Clinton's letter was addressed to President of the Council of Overseas Hellenism (SAE) Andrew Athens, International Coordinating Committee - Justice for Cyprus (PSEKA) President Phillip Christopher and Andy Manatos.

[6] Greece rejects US demarche over Cyprus flyovers

The Greek government has firmly rejected a demarche lodged by the US embassy in Athens several days ago with the foreign ministry concerning flights Greek fighters periodically conduct over Cyprus.

The report, published in yesterday's edition of the Athens daily "Adesmeftos Typos," has been confirmed by a diplomatic source.

In rejecting the demarche, Athens reminded Washington of the 22-year-long occupation of roughly one-third of the island republic by Turkish occupation forces, as well as the presence of 30,000 Turkish troops on the divided island.

Flights by Greek planes over Cyprus are part of a joint defense doctrine between Athens and Nicosia, which a government source said are part of exercises that will not be discontinued despite US pressure.

Washington believes the flights may create tensions in Cyprus, but this assessment is rejected by the Greek side which stresses that pressure should be exerted on Turkey, and not Greece.

[7] Romeos to see Barnier in Athens today

Alternate Foreign Minister George Romeos, who is responsible for European affairs, will meet with French Foreign Under-secretary Michel Barnier at the foreign ministry today.

The two will discuss issues relating to the inter-governmental conference (IGC), the results of the Florence European summit, Mediterranean policy as well as regional issues.

[8] Simitis meets with Archbishop Anastasios

Prime Minister Costas Simitis met yesterday with Archbishop of Tirana and All Albania Anastasios.

According to reports, issues regarding Greek-Albanian relations and the ethnic Greek minority in southern Albania were discussed during the meeting.

[9] Premier meets with new Supreme Court appointments

The government is the "institution guaranteeing the independence of justice", Prime Minister Costas Simitis said yesterday during a meeting with the new appointments to the Supreme Court, announced last Friday. Justice Minister Evangelos Venizelos, who was also present at the meeting, said the premier told Supreme Court president Stephanos Matthias and Supreme Court prosecutor Panayiotis Dimopoulos that the aim of the government was the speedier execution of justice and overcoming judicial red tape "which so tries so many Greek citizens".

[10] Budget in for a 'difficult' second half year, Papadopoulos says

The government said yesterday that it was planning a meeting later this week between the national economy and finance ministers along with the administration of the central bank to define long-term priorities.

Speaking after a meeting with Prime Minister Costas Simitis, Finance Minister Alekos Papadopoulos told reporters he had briefed the premier on the course of implementation of the 1996 budget, stressing that the government had to maintain its efforts. The second half of the year, he added, may be "difficult".

Mr. Papadopoulos added that the ministry was working on legislation that will restrict public spending, while a bill detailing which tax exemptions would remain or be eliminated was in its final stages.

[11] Opposition statements

"The finance minister, even with delay, was obliged, indirectly, but clearly to recognize that the course of the economy is heading for the worse. A fact, which means that difficulties in the second half of 1996 will not only be greater for the budget, but substantively for the ordinary citizen, the unemployed youth, the farmer, the handicraftsman...," an announcement by the main opposition New Democracy party read in response to the finance minister's statements.

Political Spring (Pol.An) spokesman Notis Martakis said the finance minister's comments were "proof" that the election of Mr. Simitis to the PASOK presidency "means another austerity offensive on the weakest members of society."

He said the "difficult" second half year meant austerity with the exclusive aim being the better figures".

A similar announcement by the Communist Party of Greece (KKE), said the statements by the finance minister constituted the harbinger for a new assault against workers' incomes.

"The government is also paving the way for further drastic cuts in social expenditures to implement the instructions of the Brussels Directorate and to satisfy the targets set in the 'Convergence Programme'," it added.

An announcement issued by the Coalition of the Left and Progress party said the statement made by Mr. Papadopoulos after his meeting yesterday with Mr. Simitis was "an attempt at preparing public opinion for new one-sided austerity measures."

The announcement said the government has a duty to proceed with a change in policy, as well as to promote direct and radical changes for development, taxation justice and social sensitivity.

Dimitris Tsovolas, a former PASOK finance minister and now head of the Democratic Social Movement (DHKKI) party, called for a drastic change in the government's economic policies.

This change, he added, must be made on the basis of "improved production and productivity and not on the shrinking of the productive base and the purchasing power of the people".

Mr. Tsovolas said the finance minister's statements were tantamount to an admission that the state budget could not be executed.

[12] ND foresees early elections

A session of the main opposition New Democracy party's political council yesterday focused on national issues and the latest domestic political developments.

ND spokesman Prokopis Pavlopoulos said afterwards that the party considered the latest recession in Greek-Turkish tension as temporary and superficial, stressing that the main opposition party is in favor of activating the 1988 Papoulias-Yilmaz memorandum. Concerning FYROM, he said the name issue was stagnant, a fact which he said vindicated ND's reservations that the 1995 New York interim accord was unsuccessful.

Regarding political developments, he said ND insists that elections may take place at any moment. He also told reporters that the interview Sunday to the newspaper "Eleftherotypia" of former education minister Giorgos Souflias, where the latter blames antagonism between ND leader Miltiades Evert and former prime minister Constantine Mitsotakis for the party's poor picture and where he said two poles of leadership exist, was not discussed.

[13] Second SAE convention slated for Thessaloniki

The second convention of the presidium of the Council of Overseas Hellenism (SAE) is due to take place in Thessaloniki on July 12-14 and is expected to be attended by Alternate Foreign Minister George Romeos.

The SAE presidium members, headed by SAE President Andrew Athens, are expected to arrive in Thessaloniki on Thursday.

During their stay in the city, they are to meet with Macedonia-Thrace Minister Filippos Petsalnikos, Thessaloniki Mayor Constantine Kosmopoulos and Thessaloniki Prefect Constantine Papadopoulos.

[14] Drop in Athens air pollution noted yesterday

Air pollution remained at low levels in Athens yesterday and, in view of a gradual decrease in high temperatures and the strengthening of winds, the environment ministry did not announce special measures for today, but limited itself to making simple recommendations.

More specifically, it recommended avoidance of the use of cars in downtown Athens during the morning hours.

Yesterday, only on a few occasions did nitrogen dioxide exceed the alert level.

Meanwhile, the main opposition New Democracy party accused the environment, town planning and public works ministry and the government of "ineffectiveness, indifference and slackness in taking measures."

An announcement by ND said nitrogen dioxide levels in past days were the highest in the past three years, while in the northern suburbs nitrogen levels exceeded emergency levels.

[15] Authorities take preventative measures as foot-and-mouth disease reported in FYROM

Veterinary authorities in the northern prefecture of Kilkis, which borders with the Former Yugoslav Republic of Macedonia (FYROM), have been carrying out strict controls in frontier villages over the last few days in an attempt to prevent the spreading of a reported foot-and-mouth disease outbreak in the neighboring country.

Farmers have been advised not to let their animals graze in areas less than three kilometer from the border, while all incoming vehicles are also undergoing compulsory disinfection.

[16] Finance ministry to decrease rates in state securities

The finance ministry will decrease interest rates for state securities to 12.80 per cent in the issue at the end of July or, possibly earlier, in the issue halfway through the month.

The finance ministry is determined to go ahead with lower rates, believing that, as proved by demand during Sunday's auction, liquidity remains strong and demand for state securities will be maintained despite lower interest rates.

Issues to be made halfway through the month and at the end will be "open" and will not take place by auction.

During Sunday's auction, bids offered amounted to 505.5 billion drachmas, more than double the amount sought by the ministry.

Bids totaling 200 billion drachmas were ultimately accepted with base interest rates ranging between 13 per cent and 13.145 per cent, as well as non-competitive bids totaling 60 billion drachmas having an average base interest rate of 13.112 per cent.

Interest rates were 0.333 per cent lower than the previous auction.

[17] EAB to provide support for Apache gunships

The Hellenic Aerospace Industry (EAB) will provide support for AH-64 "Apache" helicopter gunships ordered by the Greek Army, as part of its backing for the country's armed forces.

EAB has also undertaken to monitor all land-based systems for checking the helicopters' navigation and control organs.

[18] Hydroelectric station comes on line on Nestos River

A new hydroelectric power station is providing the municipalities of Xanthi and Chrysoupoli, Kavalla prefecture with electricity as of last Sunday.

The unit was built on the western side of the Nestos River on the border of Chrysoupoli and the community of Xeria.

Generated power is provided for the Public Power Corp.'s (DEH) medium voltage network, while the station's operation is automated, with no staff required.

End of English language section.