A.N.A. Bulletin, 19/07/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No 941), July 19, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Europarliament committee calls for comprehensive discussion on EU-Turkey customs union

Eurodeputies in the Joint EU-Turkey Parliamentary Committee decided yesterday to call for a comprehensive debate in September on the EU-Turkey customs union, as well as submit a report on their findings from their June visit to Ankara.

The Council of Ministers and the European Commission will also be called upon in September to provide a progress report on the customs union.

Sources said that during yesterday's session, European Parliament President Klaus Haensch undertook the responsibility of addressing a protest letter to the Turkish government, concerning the obstruction of Eurodeputies attempting to visit Leila Zana, convicted and imprisoned last year by Ankara while she was a deputy in the Turkish national assembly. Ms Zana, who is of Kurdish descent and was recently awarded a Sacharov Prize, is currently in a Turkish jail.

Meanwhile, during discussion of a technical report on control procedures concerning application of the customs union, presented by German Christian Democrat Peter Kittelmann, a number of Eurodeputies who approved the relevant agreement last December, stated that they now "regret" their decision, in view of the continuing violation of human rights in Turkey and the lack of confidence in True Path party leader Tansu Ciller, who recently formed a coalition government with the Islamist Welfare Party.

Austrian Liberal Eurodeputy Martina Gredler said "Ciller broke her word and put herself at the service of the fundamentalist prime minister..."

German Green Party deputy Wolfgang Kreissl-Dorfler called on colleagues who had voted in favor of the customs union with Turkey to reconsider.

In addition, French Socialist Bernard Kouchner, among those who voted in favor, said "I believed the customs union would stop the advance of the Islamists. Now I believe I was wrong..."

French Radical Herve Fabre-Aubrespy added: "Seven months after the customs union nothing has changed in Turkey, and I would vote again with both hands against the agreement," while French Socialist leader Elisabeth Guigou called on her colleagues to vote against "on the basis of the circumstances prevailing in Turkey..."

However, the report was finally approved by a majority.

Meanwhile, the European Commission has expressed its anxiety over political instability in Turkey and its repercussions in a written answer to a question by Coalition of the Left Eurodeputy Michalis Papayiannakis.

"It is clear that the unstable political situation in Turkey since the customs union agreement came into force has negative repercussions on the economic level, and consequently, on the customs union itself, particularly as regards foreign investment."

The European Commission, however, said it was satisfied with the fact that "merchandise flow in both directions without facing customs problems," noting the priority attributed to the strengthening and deepening of relations between the EU and Turkey at the Florence Summit this year.

The Union's stand towards Turkey also came up in yesterday's plenary session, where British Labor Eurodeputy Alex Smith and Greek Communist Party (KKE) Eurodeputy Vassilis Efraimidis raised the issue of human rights in Turkey, prompted by the violent treatment of demonstrators by police, the banning of political parties and the Turkish army's operations in predominately Kurdish-populated areas of southeastern Turkey.

Meanwhile, in a resolution supported by all sides, the European Parliament yesterday condemned the assassination in the Turkish-occupied sector of Nicosia on July 6 of Turkish Cypriot journalist Kutlu Adali, and the "inadequate" actions of so-called "authorities" in Turkish-occupied northern Cyprus towards apprehending the culprits, while also expressing concern over the escalation of terrorist acts in the self-styled state.

An unknown organization, calling itself the "Turkish Revenge Brigades", claimed responsibility for the assassination.

The resolution described Adali as a voice of progressive Turkish Cypriots, who recognized the need for finding a solution to the Cyprus problem within the framework of the island republic's integration with the European Union, and let it be implied that his views were the reason for his assassination.

"The European Parliament stresses the significance of the start of negotiations for the entry of the Republic of Cyprus in the European Union, which will contribute to the finding of a permanent and just solution to the Cyprus problem, so as to secure t he protection and promotion of human rights for all Cypriots," the resolution read.

[2] Bank of Greece move to cut penalty interest good for business

National Economy Minister Yiannos Papantoniou said yesterday that the central bank's decision earlier this week to reduce the ceiling of penalty interest rates, applicable to both new loans and those already taken out, provided a solution to a problem faced by the business world for many years.

The Bank of Greece announced on Tuesday that it was cutting penalty interest rates by 1.5 percentage points. As of August 1 this year, penalty rates will not be permitted to be more than 2.5 percentage points higher of the interest rate agreed for loan repayment.

The Union of Greek Banks advised its members to apply the reduced interest rates to all loans, including outstanding ones.

Mr. Papantoniou expressed the government's satisfaction over the Union's stance, noting that bank lending rates for companies had fallen approximately 10 percentage points in 1995 alone.

An announcement by the board of the Union of Greek Banks (UGB) said "banks do not aim at receiving penalty interest which never constituted a source of income for them. What is of interest to the banks is the timely repayment of their loans and the payment of contractual interest."

The board convened yesterday and before the Governor of the Central Bank issued a relevant decision on examining penalty interest rates.

UGB's board decided to recommend to banks to implement the settlements of the Bank of Greece's Governor which anticipate a decrease in penalty interest rates by 1.5 percentage units and which in no case should be greater than 2.5 percentage units above regular interest rates for loans.

The announcement underlines the banking system's contribution to the country's economic development by covering the needs of both businesses and consumers.

[3] Gov't reacts to Ciller's comments

The government said yesterday that Turkish Foreign Minister Tansu Ciller would have other opportunities to communicate with European Union officials "in order to become aligned with Community positions".

Government spokesman Dimitris Reppas made the statement when asked to comment on remarks by Ms Ciller on the EU declaration which accompanied its agreement on the MEDA trade and investment programme aimed at eventually creating a Mediterranean free trade zone.

Greece on Monday agreed to lift its veto of the MEDA funding programme, indicating however that it would only allow the plan to proceed if Ankara accepted the declaration. Mr. Reppas said Turkey appeared to be priding itself that it was not committed by the EU declaration referring to the need for respect for international law.

"This is a disadvantage, not an advantage, and this disadvantage will produce consequences," Mr. Reppas said.

According to a Reuter dispatch, Ms Ciller said Tuesday evening in Dublin that Turkey's acceptance of a declaration by the EU foreign ministers calling on Mediterranean countries to show "good neighborliness" and respect democracy was not a precondition for implementation of the programme.

"We discussed the declaration because we wanted to find out if it was in any way related to, or a precondition to the lifting of the veto, and we found out that it was not," Ms Ciller told a news conference after the talks.

[4] EU committee to meet Monday on foot-and-mouth disease outbreak

The European Commission yesterday approved a decision by the EU's Standing Veterinary Committee to impose a temporary eight-day ban on Greek exports of dairy products, live animals and meat due to several recorded instances of foot-and-mouth disease in t he Evros Delta.

The Standing Veterinary Committee will issue a decision on whether to continue the embargo on Monday, after postponing a meeting scheduled for today.

Athens is "guardedly optimistic" about the outcome, which will be based on a report by two Standing Veterinary Committee experts who visited the affected border region earlier this week. It is hoped that the ban may be revised to apply only to the Evros prefecture.

Meanwhile, an agriculture ministry decision not to slaughter all 8,000 cattle, sheep and goats in the marshy delta region has been met with approval by the area's stockbreeders.

Under the decision, announced yesterday by Agriculture Minister Apostolos Fotiadis, only animals infected by foot-and-mouth disease as well as the herds they are part of, will be destroyed.

However, disagreement continues over the amount of compensation for each animal to be slaughtered. Following a meeting with local officials, stockbreeders repeated their demands for payment ranging between 350,000 and 400,000 drachmas per head of cattle . They also want 200,000 drachmas for each large calf slaughtered and 150,000 drachmas for each small calf.

According to reports, a newly formed three-member government committee in the prefecture appointed to manage the compensation effort agrees with the requested amounts, while stockbreeders' representatives said that if the agriculture ministry officially agrees with their payment demands, the slaughter of roughly 400 infected animals can begin immediately.

The Evros veterinary directorate is continuing checks for the disease in all veterinary units in the region. No new cases had been reported by late last night.

[5] Italy's Prodi to have talks with Simitis today

Italian Prime Minister Romano Prodi will make a one-day visit to Athens today for talks with Prime Minister Costas Simitis that are expected to focus on bilateral ties as well as Greek-Turkish relations and Mediterranean issues.

[6] Simitis meets with Tunisian FM

Prime Minister Costas Simitis met yesterday with Tunisian Foreign Minister Habib Ben Yahya, who is currently on an official visit to Athens.

Tunisia and Greece signed a consular agreement on Wednesday.

Mr. Simitis also later met with Andrew Athens, the president of the World Council of Overseas Greeks.

[7] Tsohatzopoulos, Simitis confer

The role of informatics in public administration was the focus of a discussion yesterday between Prime Minister Costas Simitis and Interior, Public Administration and Decentralization Minister Akis Tsohatzopoulos.

The cabinet will discuss the issue as well as the workings of the state at its meeting today.

Mr. Tsohatzopoulos said after the meeting that the business programme "Cleisthenes" was "in full swing". He said he also briefed the premier on the problems involved in implementing programs in various ministries.

[8] Mitsotakis gives deposition regarding OTE digital contract controversy

Former prime minister Constantine Mitsotakis yesterday testified before the special inquiry into irregularities in the contract signed by the Hellenic Telecommunications Organization (OTE) and Intracom and Siemens Hellas to supply OTE with one million digital switches.

Mr. Mitsotakis refused to make any comments on completing his testimony. He said that the inquiry was confidential and that he had no comments to make on his statements to the prosecutor.

Sources said, however, that Mr. Mitsotakis claimed that OTE should have requested expert foreign advice to check the offers of the bidders so that OTE could decide on the most advantageous bid.

He also reportedly referred to the condition laid down by his government for the readjustment of prices for telecoms material which OTE had ordered before 1992, to levels which would have been offered by the lowest bidder in a subsequent tender.

This condition was not included in the contract signed in 1994 for the supply of digital switches from Intracom and Siemens Hellas to OTE, with the result being that OTE is now filing through the courts to retrieve the amount of 11 billion drachmas, the difference in the prices.

Mr. Mitsotakis has in the past referred to the digital switches issue as being the main reason for the fall of his government in 1993.

His former economy minister Stephanos Manos is expected to testify in the case today.

[9] Four EOT department heads transferred

Four Greek Tourist Organization (EOT) department heads were replaced yesterday following a recent announcement by Development Minister Vasso Papandreou that the government would crack down on "networks" operating within EOT.

Specifically, EOT Development Director Giorgos Stratos (who also submitted his resignation from the post of president of EOT's service council), Technical Services Director Stefanos Asimakopoulos, the development department's accounting office director Emmanuel Xanthakis and development department official Nicholas Koutsoliakos were transferred to other EOT sections.

According to EOT's Secretary-General Vassilis Kourtesis, the internal transfers basically concerned departments in which poor operation was observed, mainly in connection with the exploitation and development of EOT's property.

Additionally, departmental inspections will continue. EOT's administration wants more changes to follow with service criteria to enable EOT to operate in a more appropriate manner.

EOT's board convened yesterday and decided to order investigations on actions occurring in past years regarding maintenance expenditures of EOT's self-supervising units and leasing contracts for the granting land belonging to EOT along the beaches extending from Faliro to Sounio in Attica prefecture.

In other words, all agreements EOT has concluded with private individuals concerning areas of the seaside motorway, and which contain any suspicion of arbitrariness, will be closely scrutinized.

Meanwhile, transfers reportedly met with dissatisfaction by most EOT employees, who want Ms. Papandreou to restore the moral standing of the organization's employees, which they believe suffered a blow by her statements of "networks" at a senior departmental level.

EOT employees' and engineers' unions, as well as of Athens Festival employees, threatened to take strike action at an extraordinary general assembly yesterday if Ms Papandreou announced transfers of EOT's directors without previously having exposed the specific networks, and without their relation to illegal activities being proved.

Employees' representatives again called for the immediate dismissal of Mr. Kourtesis (who was a personal choice of Ms. Papandreou) whom they consider responsible for making claims of "vague networks" to Ms Papandreou and of showing unwillingness to crack down on such networks, despite the existence of past specific reports made by employees.

[10] Europarliament approves adoption of Commission's directions on transport networks

Following deliberations lasting more than two years, the plenum of the European Parliament yesterday finally gave the green light for adoption of the Commission's orientation regarding development of the inter-European transport network.

The decision concerns construction of 14 large-scale projects of pan-European significance, including the Greek highways of Egnatia, across northern Greece, and the Patra-Athens-Thessaloniki motorway axis.

During a relevant discussion on Wednesday, most Eurodeputies accused the Council of Ministers of refusing to recognize Parliament's right to joint decisions regarding determination of the priority of large projects, granted to it by the Treaty of Maastricht. Protesting MEPs included Greek Eurodeputies Pavlos Sarlis, (New Democracy) and Nikitas Kaklamanis (Political Spring) who along with their respective party colleagues, Giorgos Anastasopoulos and Katerina Daskalaki, yesterday voted against the plan recognizing the right of the Council to determine the projects' priorities.

Mr. Kaklamanis said the final decision "was not called a compromise, but a product of political blackmail of the European Parliament by the Council, which will be able to change the priority of projects without asking anybody."

The plan was approved with 351 votes in favor and 41 against.

[11] US funds efforts to build Balkan 'East-West Axis'

The Clinton administration has offered three Balkan countries gratis aid of $8 million to get work going on the "East-West Axis", the official name for a highway planned to run from Durres in Albania to Istanbul in Turkey.

The money is to be shared between Bulgaria, the Former Yugoslav Republic of Macedonia (FYROM) and Albania.

The total US contribution to the road's construction is expected to reach $30 million, with additional funding from the private sector.

According to a Bulgarian news agency (BTA) dispatch from Skopje, the agreement was signed by FYROM deputy prime minister Bekir Zuta and the director of the US Trade and Development Agency John Grandmason. Mr. Grandmason signed a similar agreement in Sofia recently with Bulgaria's transport minister.

"This is the first phase of the initiative by US President Bill Clinton for the development of the southern Balkans," the dispatch stressed.

Sofia plans to use its share of the money to complete a railway line to the Bulgarian-FYROM border and to build a goods terminal at the Sofia railway station.

Skopje plans to use its share to construct a portion of the road to Bulgaria as well as to fund a study on the national rail network and the construction of a container terminal in the capital.

Greece has said that work on its own major inter-European road network, the Egnatia Highway, planned to span the breadth of Greece from west to northeast and possibly to Istanbul, effectively canceling out plans for the "East-West Axis", dubbed the "para-Egnatia".

The East-West Axis is projected to run parallel to the Egnatia Highway, which is already under construction.

[12] ND cadre harshly criticizes Gov't absorption rate of EU funds

Former New Democracy national economy under-secretary Aristeides Tsiplakos said yesterday that figures concerning the absorption of European Union project funds in the first quarter of the year "far from inspiring any confidence, appeared much worse than those of the first two years of the application of the Delors II Package, for which the excuse of unpreparedness was cited."

He attributed prime responsibility to Prime Minister Costas Simitis for the development.

"When Mr. Simitis was industry minister, he had managed to have the lowest absorption rate in the programs of his competence, the unacceptable 5 per cent. Now, as prime minister, he has managed to have the same rate for the whole of the Delors Package, in the first four months of his tenure," he said.

He backed his argument by pointing out that in the first half of 1996, Greece absorbed 151 billion drachmas, compared to total commitments for the year of 1.68 billion, or 36 per cent on an annual basis.

He said the programs which were particularly noted for delays were those of the natural gas project, road construction, industry, and the regional programs for Thrace and the Ionian islands.

Finally, Mr. Tsiplakos released a copy of a finance ministry document, dated June 6, 1996, which points out that "receipts from structural funds and the Cohesion Fund recorded a significant delay in relation to the forecasts for the corresponding period, a development which, if continued, can create serious problems in the smooth execution of the budget in the current year."

[13] Papazoi calls for set global goals in reduction of emissions

An international conference on world climate change and the so-called Greenhouse Effect was held in Geneva yesterday, with Environment, Town Planning and Public Works Under-secretary Elizabeth Papazoi heading Greece's delegation.

At the conference, the Greek minister said it was now widely accepted that emissions of "Greenhouse gases" have caused a change in the world's climate.

"Even if we stabilize global emissions at today's rates, the concentrations in the atmosphere will continue to increase for another 100 years," Ms Papazoi said, suggesting "binding action" so a reduction in emissions be effected.

"We should now press to identify straight-forward quantitative global goals. They should state an upper level of stabilized CO2 concentration, and should indicate a timeframe to reach them."

Ms Papazoi added that developing countries should shoulder the burden of reaching such targets, as the average energy per capita use in the developing world is less than 1/10 that of the developed nations.

She added that Athens is already implementing policies and measures compiled by the EU, and has recently announced a programme for energy conservation in buildings. She noted that Greece is "facilitating the utilization of renewable energy sources; instituting fuel substitution and is launching a new energy conservation action plan in industry."

"We should try to make clear and convince all our citizens that these policies and measures should not be, and need not be a burden and an obstacle to development. On the contrary, they should constitute an opportunity for social change that could lead to a true improvement in the quality of life," Ms Papazoi concluded.

[14] Greece launches campaign to promote exports, joint ventures with expatriates

The national economy ministry will launch an international campaign to promote Greek products abroad in September with the co-operation of expatriate Greek businessmen, National Economy undersecretary Manolis Beteniotis told a press conference yesterday.

The campaign will run for nine months and foresees an information campaign directed at expatriate businessmen and consumers, the support of Greek firms planning co-operation with expatriate firms and investors and the creation of conditions which will lead to collaboration between Greek and expatriate companies.

A congress on expatriate investors is scheduled to be held in May next year in Athens, with the participation of well-known entrepreneurs from the expatriate community.

"Expatriate businessmen and consumers will discover that Greek products, their products are equal to foreign products and often much better," Mr. Beteniotis said.

He specifically mentioned products that make up the "Mediter-ranean diet", such as olive oil, juices, yogurt and cheese, fish products and seafood, and footwear. "We want all Greeks around the world to walk in Greek shoes," he said.

He stressed the importance of the expatriate community in promoting the economic and trade interests of Greece and the need for the application of a long-term strategy of making the best use of Greeks abroad, with the creation of a "permanent infrastructure" that will ensure ongoing communications with the Greek communities around the world.

Mr. Betentiotis briefed the president of the World Council of Overseas Greeks Andrew Athens at their meeting on Wednesday on the ministry's campaign and the idea for the creation of a directory of expatriate businesses around the world.

Mr. Athens said he was "enthused" by the plans and said he was certain that the Council and expatriate organizations would lend their support.

[15] Prosecutors to join in fight against profiteering

Prosecutors around the country have been asked to crack down on profiteering and adulteration of foodstuffs in a severely worded circular sent by Supreme Court Deputy Prosecutor Ilias Spyropoulos.

Reacting to reports of an increase in instances of profiteering, the supreme court has asked for suspects of these crimes to be tried immediately.

Appellate court prosecutors have also been called on to draw the attention of prosecuting authorities in their areas for speedy trials and the exercise of all legal means, while it was also stressed that investigations into such cases must be conducted without delay.

Mr. Spyropoulos said the safeguarding of the public's health and its protection from fraud with quick application of criminal legislation is the duty of both the police and the courts.

[16] IOBE report says it is time for hard work on the economy

The Foundation of Economic and Industrial Research (IOBE) said in its latest four-monthly report that the recent election of Prime Minister Costas Simitis as ruling PASOK party president had put an end to the political uncertainty which prevailed during the first half of the year and had been harmful to the economy.

The report, published yesterday, said the government now faced the difficult task of bringing the economy in line with the convergence programme.

The main weaknesses of the government's present economic policy, the report said, were insufficient progress in improving the public finances situation, lack of action in effecting radical structural changes and excessive emphasis on the 'hard drachma' policy.

The result, according to the report, was a slowing down and difficulties in achieving further nominal convergence and the continued real divergence of the Greek economy vis-a-vis the average performance of the country's EU partners.

According to IOBE, this situation is certainly reversible, provided that "corrective interventions" are made with consistency in order to achieve more rapid convergence. Failing this, the report said, there was a fear that Greece's incorporation in the single European currency would be delayed.

IOBE also warned that any complacency or slackening of efforts "with the logic that 1997 is an election year" would have extremely adverse long-term repercussions on the economy.

The foundation forecast that inflation would stand at 7.5-8 per cent at the end of the year while the rate of growth of GDP would be 2 per cent. Both figures are unfavorable compared with the government's target of less than 7.5 per cent and 2.5 per cent respectively.

IOBE also expects a small further worsening of the current accounts deficit but predicts a continuation of the rapid inflow of net short-term foreign capital, thanks to the confidence engendered by the government's exchange policy.

The report reiterates concerns expressed by business circles and the Federation of Greek Industries (SEB): it asks for a different "mix" of economy policies so that the de-escalation of inflation and interest rates can be better supported by fiscal adjustment (primarily spending restrictions) and less by the austere currency and exchange policy, which is considered to be an obstacle to the growth and to have adverse effects on exports and the public debt. The public debt, it adds, continues to grow and to be burdened on the way with the taking on of the obligations of a number of public organizations.

It also criticized delays in planned privatization of public utilities and banks, rumored significant wage increases for public servants and for the bad economic situation of social security pension funds.

[17] Tolls to increase by 20 per cent as of Aug. 1

Highway toll fees will increase by about 20 per cent as of Aug. 1 and will continue to increase gradually, National Economy Under-secretary Christos Pachtas announced yesterday.

The increase for 1996 will be approximately one drachma per kilometer, while revenues will be funneled through a special account to be initiated with an amendment being promoted in Parliament for construction of major traffic networks.

[18] Hospitalized Greek actress' health worsens

The condition of ailing popular Greek actress Aliki Vougiouklaki took a turn for the worse yesterday, according to a medical bulletin issued by the Athens Medical Center, where the actress has been hospitalized over the past two months.

Doctors said they will brief reporters on her condition in detail tomorrow.

Ms Vougiouklaki was set to leave hospital on Saturday, her birthday.

End of English language section.