A.N.A. Bulletin, 24/09/96

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

Athens News Agency Directory

ATHENS NEWS AGENCY BULLETIN (No. 997), September 24, 1996

Greek Press & Information Office

Ottawa, Canada

E-Mail Address: grnewsca@sympatico.ca

CONTENTS

[1] Battle for ND leadership begins

One day after its defeat at the polls and the resignation of Miltiades Evert, the New Democracy party yesterday set the process in motion for the election of a new leader.

After former ND economy minister Stephanos Manos announced his candidacy for the leadership Sunday night, Dora Bakoyanni, daughter of former conservative prime minister Constantine Mitsotakis yesterday announced her intention to contest the leadership.

Ms. Bakoyanni, 42, the first woman ever to seek the presidency of the conservative party, is the widow of New Democracy MP Pavlos Bakoyannis, who was shot to death by the November 17 terrorist group in 1989.

"I shall run for the New Democracy leadership, in order to serve the unity and prospects of the liberal and democratic party, which are of absolute priority," Ms. Bakoyanni told a press conference, describing Mr. Evert's resignation as "Honourable".

"At this critical time, the party's unity and reorganization are necessary," she said. "The election result has shown the need for a new perspective, hope and certainty for the great liberal democratic movement," she added.

Ms. Bakoyanni said New Democracy should promote "a liberal policy with a view to enlarge social solidarity, promote economic reorganization and plan a national foreign policy."

The first ND cadre to announce he would contest the leadership was prominent party member and former economy minister Stephanos Manos, 57, only hours after Mr. Evert announced his resignation.

A German educated political scientist, Ms. Bakoyanni was first elected to Parliament in November 1989, by her husband's single-seat district of Evrytania two months after his murder. Since then, she held a number of government posts in her father's government, which lost to the ruling socialists in the October 1993 elections.

Mr. Mitsotakis resigned from the party leadership after that defeat, remaining honorary president, and was replaced by Mr. Evert following party elections.

Speaking to the press yesterday, the ND honorary president said Mr. Simitis's re-election to power did not solve the Greek political problem, adding that the prime minister-elect "is now more weakened than before the elections."

"He is still faced with the same internal problems coupled by leftist opposition in the party of (Democratic Social Movement leader Dimitris) Tsovolas," Mr. Mitsotakis said.

"I doubt that he is in a position to make great decisions to the benefit of the nation," he added.

Mr. Mitsotakis did not comment on Mr. Evert's resignation.

Meanwhile, sources close to Mr. Evert said yesterday that the ND leader did not plan to re-claim party leadership, but did not rule out the possibility for such a development.

The sources said Mr. Evert, who handed in his resignation yesterday noon while calling for the initiation of procedures for the election of a new party leader, was even considering retirement from active politics.

ND Parliamentary Group Secretary Stavros Dimas said procedures will be initiated in the next few days.

In a related development, sources have said party Vice President Ioannis Varvitsiotis may run for party leadership.

Describing Mr. Evert's decision to resign as "honorable" and "brave," Mr. Varvitsiotis said "our goal should be to respond, united, to the demands of the Greek people with a new strategy, policy and social dynamics."

"Now is the time for the movement's reorganization and I will contribute to this with all my strength," he said.

The same sources said party MP Costas Karamanlis may also be a potential candidate for the leadership of ND.

Meanwhile, Mr. Manos, who announced his decision to contest the party leadership on Sunday night, yesterday stressed the need "for unity and clear ideology in order to put an end to the partition between the party's officials."

In another development, former ND education minister George Souflias, who implied on Sunday night that he might seek the party presidency, will probably announce his candidacy today, party sources said.

[2] Markets welcome Simitis victory

Athens, 24/09/1996 (ANA)

Traders on the Athens Bourse welcomed the Simitis win yesterday, with financial markets in a climate of euphoria and prices dipping on profit-taking after a strong opening.

Before the day was out, money-markets recorded softer interest rates and increased foreign exchange coming into the country to buy high yielding Treasury bills after the socialists' win. The drachma moved higher against the ECU.

Financial analysts said this development was expected following the solid victory of Prime Minister Costas Simitis over his conservative rival on Sunday's elections.

They said Mr. Simitis was faced with tough challenges ahead as the country's financial markets expected the prime minister to deliver on his campaign promises for a stronger, more competitive economy. "We have an immense responsibility to lead Greece to the 21st century, to achieve a strong Greece. Our victory is also a victory of all the forces which believe in the competitiveness of our economy," Mr. Simitis said after his win.

With attention focused on Mr. Simitis' pledge that Greece's future lay firmly within the European Union, the analysts said the markets expected Mr. Simitis to lead Greece on the road to economic recovery without delays or surprises, sticking to his pro- European, strict economic policies.

Espousing this approach, the markets supported Mr. Simitis' race to the premiership, giving, for the first time, considerably less support to the conservative opposition which they feared might steer the economy on an unpredictable course.

In his campaign, Mr. Simitis promised privatizations of small state banks, a draft bill to introduce equity derivatives and further deregulation of pension funds to be allowed to invest assets in the stock market.

[3] Business associations expect crucial decisions by new government

Business and professional association leaders yesterday were in an expectant mood for crucial decisions concerning the course of the Greek economy, after PASOK's re-election with an absolute majority of seats.

"The new government is shouldering the great responsibility of making right away the necessary decisions which will put the Greek economy on an orbit of speedier nominal and real convergence. Now, with the fresh mandate of voters, even the slightest delay in implementing the convergence programme is unjustifiable," said Association of Greek Industries (SEB) President Iason Stratos.

"We are expecting the government to implement its pre-election commitments for drastic cutbacks in state spending and adherence to the pledge for no new direct or indirect taxes," said President of the Athens Chamber of Commerce and Industry (EBEA), Ioannis Papathanasiou.

"We expect a turn in the government's mood towards traders, with its policy statement and the person that will assume the post in the relevant economic ministry," President of the National Traders' Confederation, Dimitris Kapsalis said.

The General Confederation of Small Manufacturers and Traders (GSEBEE) said their sector was facing an acute crisis and expected solutions to their problems from the new government.

[4] Simitis given mandate to form gov't

PASOK President Costas Simitis was yesterday given the mandate to form a new government following his party's re-election in Sunday's general elections.

With 98 per cent of the vote counted, PASOK won 41.51 per cent of the overall votes and a comfortable majority of 162 seats in the 300-member Parliament.

Bolstered after winning a fresh four-year mandate, Mr. Simitis set out yesterday to form a new socialist cabinet after receiving the mandate from President of the Republic Kostis Stephanopoulos.

Under the mandate he has three days to form a government. He must then pass a confidence vote in the 300-seat Parliament.

Sources said the prime minister-elect will present his new cabinet this afternoon. According to reports, the new government will be sworn on Wednesday.

Mr. Simitis called on Mr. Stephanopoulos shortly after noon yesterday to submit the resignation of his outgoing government.

He told journalists after the meeting that he expected to announce his new Cabinet "in the next few days, after I have the final results and the names of the new deputies elected."

Caretaker Interior Minister Vassilis Skouris also called on Mr. Stephanopoulos to inform him on the distribution of parliamentary seats.

[5] Parties' poll shares and Parliamentary seats gained from elections

With the results from only 56 out of 17,710 polling stations pending last night, the parties' poll shares and the numbers of their respective parliamentary seats were as follows: PASOK: 41.51 per cent - 162, New Democracy: 38.13 per cent - 108, Communist Party (KKE): 5.6 per cent - 11, Coalition of the Left (Syn): 5.11 per cent - 10, Democratic Social Movement (DHKKI): 4.43 per cent - 9, Political Spring: 2.94 per cent - 0, Union of Centrists: 0.72 per cent - 0.

The abstention rate was 23.66 per cent.

[6] Foreign gov'ts, parties congratulate Simitis, PASOK

The United States yesterday expressed satisfaction over the re-election of Greek socialist leader Costas Simitis as Prime Minister, adding that the US had a positive co-operation relationship with the Simitis government.

"The Prime Minister has proven himself to be a serious leader dedicated to improving relations with his neighbors, and to strengthening Greece's ties with the rest of Europe and the United States," State Department spokesman Glynn Davies said.

"Under his stewardship, Greece has taken steps to reduce inflation while increasing growth (and) he has indicated that he intends to continue to pursue those policies. The United States of course has had a cooperative positive relationship with Simitis and we expect that to continue," he added.

"The US would also wish to congratulate the other parties which won seats in the Greek parliament in yesterday's elections," he said.

Mr. Davies said the US expected Mr. Simitis to "continue some of the very excellent policies we've seen in recent months."

European leaders also hailed Mr. Simitis on his election win which gave him a fresh four-year mandate.

European Commission President Jacques Santer sent a message to the Greek premier congratulating him on his "bright success."

"It is with great joy that I have been informed of the news of your bright success at Greek elections," Mr. Santer said.

"The following years will be critical. Thanks to your European dedication, Greece will play, I am certain, a significant role in the course of an increasingly united Europe," he added.

French Prime Minister Alain Juppe has stressed France's support to the Greek government's European orientation, in his message of congratulations.

"I see that the European option which you persuasively defended was accepted by the Greek people, and do not doubt that you will follow it in your new mandate ...

"France will continue, as it has done to date, to support your country's actions towards that end, and is ready, as you already know, to contribute to the search for a permanent dialogue that will secure peace, stability, and economic progress in southeastern Europe.

"It is with pleasure that I will continue cooperating with you for the reinforcement of the traditional links of friendship and co-operation that unite our two countries, at the center of a renewed Europe of solidarity," Mr. Juppe said in his message.

Lionel Jospin, First Secretary of the French Socialist Party, yesterday addressed his "warmest congratulations on the splendid result of parliamentary elections" in Greece to the socialist president.

"PASOK's victory in parliament represents the choice of an open society towards the policy of European unification desired by Greece and constitutes a new impetus for democracy," a letter to Mr. Simitis said.

Former French socialist culture minister Jack Lang expressed satisfaction at the Simitis win on behalf of the Socialist Party.

"I am happy for the win of our friend, Prime Minister Costas Simitis," he said in a message, adding that "on the part of the Socialist Party I had the pleasure of actively participating in his election campaign, which was sealed by his will for reform."

Mr. Lang said the Greek Premier "is a serious and stable man with great ambition for his country. Thanks to him Greece will regain to the full its intellectual and moral glow..."

Mr. Lang added that "under Mr. Simitis's leadership, Greece will come to know an economic and intellectual development," stressing that "Greece will be one of the architects of positive reform of the community institutions."

Commenting on Greece's parliamentary elections, a spokesman for the French Socialist Party expressed party satisfaction at the Simitis win, saying it "is particularly encouraging for Greece and Europe since Mr. Simitis is a convinced European and we do not doubt that he will put forward the Socialist view in every European negotiation..."

He said the French Socialists "are pleased to see that a member of the European community remains dedicated to the concepts we represent in France."

Italian Prime Minister Romano Prodi also addressed a message of congratulations to Mr. Simitis, saying: "I am certain that the excellent and fertile relations between our two countries will find further reasons for enrichment in all sectors and through the common effort on European edification, which you personally have promoted so strongly."

Austrian Chancellor Franz Vranitzky conveyed his congratulations over Mr. Simitis' "exceptionally impressive electoral victory," and expressed his belief that the Greek prime minister will lead Greece into Economic and Monetary Union (EMU) with the same energy and dynamism which led him to electoral victory.

British Labor Party leader Tony Blair said he had been informed of PASOK's victory with great satisfaction.

"We at the Labor party, hail your commitment to develop a new course for Greece and you shall have our support in materializing this goal. We also hail your commitment towards the development of Europe and look forward to closely working with you in the future," he said in a message to the Greek premier.

"We acknowledge the challenges Greece is faced with in the domestic front and in the region, but we are certain that your new government will be able to face these challenges and follow policies that will be to the benefit of the Greek people," he added .

President of the German Social Democratic Party (SPD) Oscar Lafontain said Sunday's election was "a great personal success" for the Greek prime minister and an "affirmation" to the citizens "of the road to revival."

"I am certain that Greece, under your leadership, will continue to contribute to the making of the European Union and peace in the Mediterranean," he said in a message to Mr. Simitis.

Chancellery and foreign ministry officials also appeared satisfied at Mr. Simitis's re-election.

[7] Cyprus President Clerides congratulates Simitis on election victory

Cyprus expressed satisfaction yesterday at the outcome of the Greek parliamentary elections, with Cypriot President Glafcos Clerides saying in a message to PASOK president Costas Simitis that he was happy to hear of his victory.

"En route to New York it is with great joy that I was informed of your election victory. ... I wish you every success and look forward to the continuation of our close co-operation in all sectors," Mr. Clerides said.

[8] Turkish reaction to election results

Turkey said yesterday it had no comment to make on the re-election of Prime Minister Costas Simitis in Greece.

It quoted foreign minister spokesman Sermet Atacanli as telling a news briefing that "the elections are something that concern the Greek people themselves so we have no comment on that."

Ankara's tight-lipped statement however was not endorsed by the press, who hailed Mr. Simitis' win as a victory for peace.

Most Turkish newspapers regarded Mr. Simitis' re-election as an easy win but noted that Greece "has now at last a stable government to lead it to the 21st century."

Many newspapers said Mr. Simitis did not wish for tension with Turkey, adding that even though the Greek prime minister considers Turkey "a threat," he follows a policy promoting solutions to differences between the two countries within the framework of international agreements and international law.

Meanwhile a Turkish official said Mr. Simitis' win could have a positive influence on Greek-Turkish relations.

Turkish foreign ministry circles reserved comment on a new approach to Greek Turkish relations until after Mr. Simitis formed his fresh cabinet, especially regarding the defense and foreign ministers.

With attention focused on developments in Iraq, Turkish public opinion did not appear to pay much attention to Greek elections.

Frequent references to the Imia crisis, which almost entangled the two countries in war last January, during the run-up to elections in Greece, were rarely mentioned in the Turkish press.

In a related development, Anatolia quoted Turkish Cypriot official Taner Etkin as saying that "whoever the election winner may be, Greece's policy against us will remain unchanged."

"We are not interest in Greek elections. This is their internal struggle and I don't believe that it will change the policy followed by Greece, Greek Cypriot administration and the Church," he added.

[9] Moslem minority expresses satisfaction over election results

The Moslem minority of Western Thrace expressed satisfaction at PASOK President Costas Simitis' election victory on Sunday. Three Moslem minority officials earned Parliamentary seats in the elections.

The Turkish Anatolia news agency quoted the three as saying they would continue, from within the Greek parliament, "to support the rights of the Moslem minority."

PASOK deputy for Rodopi, Galip Sabahaddin Galip said that "with the support of PASOK, I intend to solve the existing problems, and will try for the minority to become a bridge of friendship between Greece and Turkey."

Coalition of the Left and Progress party deputy for Rodopi, Mustafa Mustafa, said he "will co-operate with the democratic forces of Greece for logic to prevail in the problems of the minority."

New Democracy deputy for Xanthi Birol Aktifoglu stated, "it is very important for the problems of the Greek minority to be heard in Greek public opinion in a healthy manner. I will fight with all my strength in Parliament for the solution of these problems."

[10] Pharmaceutical industry dominated by supply

The Greek pharmaceutical industry went through considerable restructuring during the 1990-95 period, a sectoral study by the Economic and Industrial Research Institute (IOBE) has revealed.

The study revealed that the aging population, the extension of medical care to more population groups and the increase in disposable income are the basic factors determining the consumption of drugs. It found that the average annual increase in consumption during the period in question, measured in terms of value (retail prices), was 28.58 per cent, whereas the average annual increase in terms of quantity amounted to 2.84 per cent, revealing that the increase in consumption has not been significant.

On the supply side, the study indicated the sector is characterized by the absence of companies dominating a market share greater than 6.4 per cent, and by the large percentage of firms (40 per cent) which are both producers and importers. Given that demand is to a great extent independent of the price, the study stressed that market is dominated more by supply than demand.

This, it adds, points to the fact that the Greek pharmaceuticals industry is acquiring an increased accent on distribution, which if it is to be reversed, requires a re-examina-tion of the pricing policy of domestically produced drugs.

End of English language section.