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Athens News Agency: Daily News Bulletin in English, 97-06-11

Athens News Agency: Daily News Bulletin in English Directory - Previous Article - Next Article

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

ATHENS NEWS AGENCY BULLETIN (No 1209), June 11, 1997

Greek Press & Information Office
Ottawa, Canada
E-Mail Address: grnewsca@sympatico.ca


CONTENTS

  • [01] FMs' meeting decides co-operation in Southeast Europe region
  • [02] Simitis: Greece firm on efforts regarding European unification
  • [03] Opposition
  • [04] EIB hints at major support for SMEs in eastern, southeastern Europe
  • [05] Greek-Russian initiative for southeast Europe announced
  • [06] Congress pressed to consider sale of warships to Greece
  • [07] Albanian Socialist Party delegation in Athens
  • [08] Athens unfazed by Holbrooke's statements
  • [09] Clerides in Athens on July 1
  • [10] Local Gov't promised extra funds to cover salary expenditures
  • [11] Simitis-Skandalidis meeting focuses on PASOK issues
  • [12] Samaras briefed on IGC developments
  • [13] Parliament expected to ratify Schengen today, protests continue
  • [14] President, prime minister to confer on recent developments
  • [15] Outgoing NATO commander visits Athens
  • [16] Sainz wins 44th Acropolis Rally
  • [17] Athletic championships attract largest participation
  • [18] Albanian boat found with 300 kgs of hashish
  • [19] Debate on nat'l health system bill draws heated opposition
  • [20] EU postpones talks on gas liberalization
  • [21] Budget revenue up 11.8 percent in Jan-May
  • [22] ATE AEDAK mutual funds exceed 400 billion drachmas
  • [23] National Bank of Greece to lure foreign institutionals
  • [24] Balkan ministers agree on regional trade center
  • [25] Athens Stock Exchange stages technical rebound
  • [26] Greece backs French proposal on employment
  • [27] Airport project completed for Kos
  • [28] Papaioannou calls for shorter working hours
  • [29] Intracom, BTK consider possibility of inter-Balkan cardphone network
  • [30] V. Papandreou says Russian tourist flow to Greece will increase

  • [01] FMs' meeting decides co-operation in Southeast Europe region

    Athens, 11/06/1997 (ANA)

    Southeast European foreign ministers concluded a two-day conference in Thessaloniki yesterday by issuing a joint communiqui stressing that the future of the Balkan peoples can be ensured by peace, political stability and economic co-operation.

    Taking part in the conference were foreign ministers from Greece, the Former Yugoslav Republic of Macedonia (FYROM), Bulgaria, Yugoslavia and Romania, as well as the foreign under-secretary of Albania and Ankara's assistant foreign under-secretary.

    In all, 17 countries including the United States, Germany, Britain, France and Russia sent representatives to the conference.

    In the joint communiqui, entitled "The Thessaloniki Declaration", the foreign ministers underlined their resolve to actively promote relations of good neighborliness, stability and co-operation in the region.

    They also stressed their commitment to work together for rapid development, placing particular emphasis on the liberalization of trade and structural programs "which will safeguard the future of the peoples of the region".

    The communiqui conveys the ministers' belief that "the creation of institutions for the consolidation of democracy, respect for human rights, accompanied by the prevalence of the free market economy will lead to the firm establishment of democracy in the region".

    The ministers further state that "the European orientation of the countries in the region constitutes a primary element of political, economic and social development", declaring their intention to actively contribute to European integration. They also agreed to examine a proposal for the creation of an international forum made up of leading figures from the countries of the region with the aim of promoting good neighborly relations.

    According to the communiqui, the ministers share the view that confidence-building measures are particularly important for promoting peace and security in southeast Europe. The communiqui contains a proposal for the establishment of a "council" and the exchange of views between experts concerning the progress made in agreements reached to date.

    Stressing the important role of NATO for peace and stability in Europe, the ministers assess that the participation in the alliance of countries that have already applied for membership will contribute towards strengthening its role. Regarding the two flashpoints in the Balkans - Albania and Bosnia - the foreign ministers expressed their support for Tirana's efforts to re-establish political stability, while underlining the need for the country to regain domestic peace through the free will of it s people.

    The communiqui notes that the ministers agreed to establish a regional center based in Turkey for the promotion of trade and supported the expansion of the activities of the Bucharest-based Balkan center for co-operation between small- and medium-size enterprises through the accession of all the countries of southeast Europe.

    It also contains proposals agreed by the ministers concerning the protection of the environment, the promotion of cultural co-operation and co-operation aimed at combating organized crime, terrorism and arms and drugs trafficking. Speaking at a press conference at the end of the sessions, the ministers who took part in the conference expressed satisfaction at the outcome, stressing that ideas and proposals which up to now had remained on paper were at last beginning to be implemented. "In the Balkans we are now beginning to talk about our problems amongst ourselves, without the mediation of foreigners," Foreign Minister Theodoros Pangalos said.

    The ministers will meet again in Turkey next year, while it was agreed that the 1999 and 2000 conferences should be held in Romania and FYROM, respectively.

    It was also agreed that the leaders of the countries of southeast Europe should meet regularly, possibly beginning - according to a Greek proposal - this year on Crete.

    [02] Simitis: Greece firm on efforts regarding European unification

    Athens, 11/06/1997 (ANA)

    Prime Minister Costas Simitis yesterday cautioned that recent changes in the electoral map of Europe should not cause a relaxation of Greece's efforts to remain firmly in the process of European unification.

    "For Greece, changes in Europe are welcome, they are an encouragement, but if we stay outside European unification, we shall have deprived the country of another opportunity. Therefore, there must not only be no illusion of a relaxation, but on the contrary there must be a new impetus for the attainment of permanent national objectives," he said during the pre-agenda debate in Parliament on the government-sponsored "social dialogue" on economic and labor issues.

    He reiterated that the dialogue was a process of planning the developmental priorities of the country, and agreeing on the social conditions for the planned policies.

    "Social dialogue represents the multiplying dynamics of all the productive and creative forces of Greek society, and was successfully applied in other countries such as Spain, the Netherlands, Portugal, and Ireland... Its content is development with social justice, a by definition open agenda between social partners," he stressed.

    "It is necessary for Greece to adapt dynamically to the new conditions of production and competition... we need to adapt the system of social protection in a way that it aids development and safeguards social cohesion," he added. He emphasized that "the building of a new welfare state is a historical need for Greece. Working people should not be facing the blackmail of dismissal, a reduction in their income, or a deterioration in their labor rights".

    The premier stressed that the government had succeeded in establishing a climate of confidence in the economy, and that issues concerning the labor market should be discussed in combination with a policy for development. "For PASOK the change of scene in Europe is a vindication of our policy, and I would say that, personally, I spoke very early on about a united Europe of peoples and not of monopolies," Mr. Simitis said.

    [03] Opposition

    Athens, 11/06/1997 (ANA)

    In response, main opposition New Democracy party leader Costas Karamanlis said the key to the country's development is productivity, adding that problems faced by the Greek economy are due to an ineffectual state and the counter-productive environment created by the government's economic policy.

    Referring to social dialogue, Mr. Karamanlis called on the government to proceed with generous proposals to be submitted at the negotiating table with social partners. He said ND agrees with social dialogue but that the government must define the terms and methods through which social partners will approach problems.

    Mr. Karamanlis said that instead of having a real development policy, Greece is at present last in privatization, isn't proceeding with curtailing state spending and economic expenditures and revives the ineffectiveness of public administration. He said mediocracy prevails, which the premier christens democratic conquests. He further said the country's development course must be secured without sapping working people and pensioners.

    Communist Party of Greece (KKE) Secretary General Aleka Papariga said it is the most dangerous social dialogue in the 20th century, adding that if it is legalized it will develop into a real "guillotine". She called on working people not to legalize the start and continuation of social dialogue.

    Coalition of the Left and Progress leader Nikos Constantopoulos said the government must speak with the language of truth and expressed disagreement with the refusal of certain parties for social dialogue in advance, as well as with the government which uses dialogue as an alibi to cover up non-negotiable and foregone decisions.

    Democratic Social Movement President Dimitris Tsovolas criticized what he called the "so-called" social dialogue, saying it was an alibi for the government to pass decisions already taken by the European Union's directorate. He also said it would lead to a complete demolition of the last vestiges of the nation's social welfare system and workers' rights.

    Earlier, Political Spring party leader Antonis Samaras said "social dialogue, an institution of prestige in most European union countries, is being dragged... and used for the anti-social policy of the Simitis government to acquire a social image.

    [04] EIB hints at major support for SMEs in eastern, southeastern Europe

    Athens, 11/06/1997 (ANA)

    European Investment Bank (EIB) Vice-President Panayiotis Gennimatas said yesterday that the European Commission and the EIB are in the process of drafting two ambitious financial mechanisms to support to private enterprises, especially small- and medium-sized enterprises, in eastern and southeastern European countries which aim to attain full EU membership.

    He was speaking at a meeting of southeast European businessmen in Thessaloniki, which was timed to coincide with a conference of southeast European foreign ministers in this northern Greek city.

    Mr. Gennimatas said the programs aim to assist those countries converge with the economies of European Union member-states, so as to be able to become members themselves.

    "The first program concerns a new special pre-accession financial mechanism, the aim of which will be to facilitate even further the process of economic convergence. It should be ready by the end of the year," he said.

    "Equally important, and perhaps more interesting for businessmen, is the planning of an additional financial mechanism for small- and medium-sized enterprises (SMEs), undertaken by the EU, EIB, and the PHARE program," he added.

    Mr. Gennimatas specified that the various ideas under discussion included the provision of ideas to SMEs, participation in their investment capital, and the establishment of a special fund for those in eastern and central Europe, whose methods of action were being explored. The amount to be disbursed in the form of loans was likely to exceed ECU 3.5 million, while the Community's financial organ par excellence, the PHARE program, envisaged additional funding to the tune of Ecu 6.7 million until 1999.

    Besides such sums, the EU Council of Ministers in January approved the provision of another Ecu 3.52 billion by the EIB for investments in the region.

    Mr. Gennimatas noted at a press conference later that Balkan non-EU members had a very low absorption rate of Community investment funds, citing Albania as a characteristic example, where of the Ecu 150 million approved by EIB, "one lek has yet to be absorbed".

    "Total approved credits for the area are in the region of 850 million, and to date only 300 million has been absorbed," he added.

    He also expressed the view that the Greek state did not provide adequate assistance to businessmen wishing to invest in the Balkans.

    "The logic of proceeding with small steps must be overcome, and incentives must be given for investments outside Greece, as there is a danger of Greek businessmen losing those markets," he warned.

    A special adviser to the foreign ministry, Mr. Papanikolaou, noted that meetings of businessmen would take place in parallel with the foreign ministers' conferences. He added that the aim had not been the reaching of economic agreements, but the exchange of views and proposals concerning privatization efforts in the Balkans.

    He specified that this had taken place in a wide range of issues, including the lifting of inter-state disincentives, the abolition of double taxation, facilitation of the free movement of people and goods, and the establishment of Balkan organizations for promoting investments as well as insuring them.

    [05] Greek-Russian initiative for southeast Europe announced

    Athens, 11/06/1997 (ANA)

    Greece and Russia yesterday announced a joint initiative to strengthen peace, stability and co-operation in southeastern Europe. The agreement, announced by Foreign Minister Theodoros Pangalos and Russian Foreign Under-secretary Nicolai Afanasievski, calls for a meeting late next year by representatives of southeast European countries with the participation of the United Nations, the permanent members of the UN Security Council, the European Union, and international organizations.

    In a joint communiqui, Mr. Pangalos and Mr. Afanasievski called on foreign ministers winding up a two-day meeting in Thessaloniki to support the initiative.

    The communiqui said a working meeting of senior officials this autumn would be the first step in preparing the 1998 meeting, to be followed by meetings in the first half of 1998 of the southeastern European ministers of foreign affairs, energy and transport as well as commerce. "It is an initiative that will give a broader perspective to closer Balkan co-operation," Mr. Pangalos said.

    Mr. Afanasievski described the Thessaloniki conference as a "great success", adding that the Greek-Russian initiative was an "old thought by the two sides" that was now "becoming a reality".

    [06] Congress pressed to consider sale of warships to Greece

    Washington, 11/06/1997 (ANA - T. Ellis)

    US State Department and Pentagon officials are making representations to Congress for the sale of three destroyers and two frigates given on loan to the Hellenic Navy for some time now, according to the military review "Defense News".

    The publication claims that the move aims to secure parallel Congressional authorization for the delivery of three Perry-type frigates to Turkey, a sale which has been frozen through the initiative of several US legislators with pro-Greece sentiments.

    Turkey has already paid for frigates.

    [07] Albanian Socialist Party delegation in Athens

    Athens, 11/06/1997 (ANA)

    An Albanian Socialist Party delegation headed by its leader Fatos Nano will begin an official four-day visit to Athens today for talks with political leaders.

    The Albanian delegation will meet Prime Minister Costas Simitis, Foreign Minister Theodoros Pangalos, National Defense Minister Akis Tsohatzopoulos, main opposition New Democracy party leader Costas Karamanlis, Coalition of the Left and Progress leader Nikos Constantopoulos and with the ruling PASOK party's executive bureau.

    [08] Athens unfazed by Holbrooke's statements

    Athens, 11/06/1997 (ANA)

    Statements by US special presidential envoy for Cyprus, Richard Holbrooke, concerning the possibility of conflict between Greece and Turkey, do not constitute "danger-mongering", government spokesman Dimitris Reppas said yesterday. Mr. Holbrooke was quoted as telling the "Financial Times" that the situation in Cyprus could "explode at any moment, bringing into direct conflict two eastern allies, Greece and Turkey".

    He added that a solution of the Cyprus problem could open the way for "a greater historical rapprochement between Athens and Ankara". Replying to press questions, Mr. Reppas described the Cyprus issue as the "touchstone" for the improvement of Greek-Turkish relations, adding that all sides must approach the problem with responsibility and show "real interest" in finding a solution.

    Mr. Reppas said Holbrooke should exercise all his influence to ensure that talks on the Cyprus problem are not used as a pretext for "obstructionism".

    [09] Clerides in Athens on July 1

    Nicosia, 11/06/1997 (ANA)

    Cyprus President Glafcos Clerides will visit Athens for talks with Prime Minister Costas Simitis on July 1.

    According to statements by Foreign Minister Ioannis Kasoulides to Cyprus Radio, the private talks at 11.30 local time would be followed by a working luncheon.

    The talks will be held in view of UN-sponsored direct talks between Mr. Clerides and Turkish Cypriot leader Rauf Denktash in New York later the same month and within the framework of Greek and Cypriot coordinated efforts aimed at finding a solution to the Cyprus problem.

    [10] Local Gov't promised extra funds to cover salary expenditures

    Athens, 11/06/1997 (ANA)

    The presidium of the Central Union of Municipalities and Communities of Greece (KEDKE) held talks with Prime Minister Costas Simitis yesterday.

    It was agreed at the meeting that local governments will be given 15.5 billion drachmas, of which 7.5 billion will be covered by the central government for increased salary expenditures concerning local administration staff as they arise from a new salary scale.

    The remaining eight billion is money delayed in being given to municipalities from central independent funds. The talks were held in the presence of Interior Minister Alekos Papadopoulos and Under-secretary Lambros Papadimas.

    Economic and institutional issues raised by KEDKE President and Athens Mayor Dimitris Avramopoulos met with a positive response from Mr. Simitis, according to reports.

    "Today's meeting with the premier provides a reply for self administration's direct and explosive problems and paves the way for close co-operation between the government and self administration," Mr. Avramopoulos said.

    He went on to say that the meeting was "sincere, cordial and above all useful and substantive."

    "An initial ascertainment is what I consider expedient to be confirmed on the part of the prime minister as well, namely, that the claims and issues set out on our part are being satisfied to a very high degree," he added.

    [11] Simitis-Skandalidis meeting focuses on PASOK issues

    Athens, 11/06/1997 (ANA)

    Prime Minister Costas Simitis discussed all current issues concerning PASOK with the party's Secretary Costas Skandalidis yesterday.

    In a statement after the hour-long talks, Mr. Skandalidis said talks focused on events marking the first anniversary of the death of PASOK founder and former premier Andreas Papandreou (due to take place on June 22), the central committee's preparation - concerning development and taking place on June 20-21 - as well as PASOK's overall planning, given that Mr. Skandalidis will be abroad for a few days.

    Mr. Skandalidis said an announcement containing PASOK's decisions on utilizing Mr. Papandreou's archives will be issued by June 22, refusing to provide any more information both on the creation of a foundation and those participating in it.

    He further said that PASOK will circulate a poster on Andreas Papandreou's memorial next week (he said it will portray a large photograph of his), adding that a poster already in circulation is welcome for PASOK.

    [12] Samaras briefed on IGC developments

    Athens, 11/06/1997 (ANA)

    Alternate Foreign Minister George Papandreou yesterday briefed Political Spring party leader Antonis Samaras on the course of the inter-governmental conference.

    "The Amsterdam summit on June 16-17 is a 'great wager for Europe'," Mr. Samaras said after the meeting.

    Amsterdam will be where it will be decided "whether we will have a Europe of faceless bureaucracy or a Europe of citizens with a human face," Mr. Samaras said.

    Greece must include promotion of the policy of economic criteria, the revision of time-frames, and the abolition of the "humiliating" differentiation between different speed countries, as well as employment issues, he said.

    [13] Parliament expected to ratify Schengen today, protests continue

    Athens, 11/06/1997 (ANA)

    A tabled bill ratifying the European Union's open-border Schengen Pact is expected to be approved by Parliament this evening, as both the ruling PASOK and the main opposition New Democracy have announced support for the controversial agreement.

    The expected ratification comes amid often violent protests outside Parliament yesterday and late Monday evening by demonstrators mostly affiliated with fundamentalist Orthodox groups. On Monday, riot police used tear-gas to disperse the crowd. Yesterday, a seven-member group of protesters handed Parliament President Apostolos Kaklamanis a resolution against the pact.

    Protesters, including several clerics, have accused the pact of containing a direct reference to the numerical sequence "666", a number representing the anti-Christ, as stated in St. John's the Divine's Book of Revelation.

    Secular critics, on the other hand, have charged that Schengen will create a massive electronic file of information targeting EU citizens and turning Europe into a police state.

    On his part, Alternate Foreign Minister George Papandreou also commented on the pact, which calls for border controls between EU member-states to be removed, and for increased co-operation in law enforcement issues, especially customs checks and screening for non-EU citizens entering the Union.

    Commenting, Mr. Papandreou said that according to the pact - allowing free movement of Greek citizens to all the EU countries which have signed the agreement - the state will hold information only on citizens which have been convicted or are under criminal persecution.

    "Greek citizens are free to check on the type of information held by the state," the minister added.

    Meanwhile, government spokesman Dimitris Reppas said the Schengen accord would go into effect when conditions for its implementation were met. He went on to say that conditions were "ripe."

    Speaking to reporters, the spokesman said that a law had been passed governing the limits on the type of information the state can store on citizens. He said that an independent administrative authority, the second condition for the pact's implementation, would soon be established.

    Greece holds a strong interest in the implementation of Schengen, which calls for the protection of EU's external border, Mr. Reppas said.

    He said information concerning the citizens would be gathered by the national authorities and that it did not include political or religious convictions.

    Apart from Greece, a number of countries have passed laws governing limits on the type of information the state can hold on citizens, but debate continues on whether Schengen threatens privacy.

    France, Belgium, the Netherlands, Luxembourg, Spain, Portugal and Germany are all countries that have ratified Schengen. Greece, Austria, Italy, Denmark, Finland and Sweden have signed but not yet fully ratified the accord through their national legislatures.

    [14] President, prime minister to confer on recent developments

    Athens, 11/06/1997 (ANA)

    President Kostis Stephanopoulos will receive Prime Minister Costas Simitis today, reportedly to discuss developments in national issues and the revision of the Constitution. The meeting was announced yesterday by both the president's office and government spokesman Dimitris Reppas.

    There have been a number of important developments since the last meeting of the two men, including matters related to Greek-Turkish relations and the Cyprus problem, particularly following the appointment of US special presidential envoy Richard Holbrooke.

    Other developments include issues concerning the European Union, particularly against the background of the intergovernmental conference (IGC) and the Amsterdam summit early next week.

    On the domestic front, Mr. Stephanopoulos has not yet expressed his views on the proposed revision of the Constitution, the most important aspect of which concerns the voting requirements for the election of the head of state by Parliament.

    Speaking to reporters, Mr. Reppas said the premier believed it would be useful to brief Mr. Stephanopoulos on his talks in Athens on Monday with his Dutch counterpart and European Council President Wim Kok and Foreign Minister Hans van Mierlo.

    The spokesman said Mr. Simitis would also brief the president on his participation in the sessions of the European Socialist Party conference in Sweden last week, in view of developments in the EU.

    [15] Outgoing NATO commander visits Athens

    Athens, 11/06/1997 (ANA)

    The outgoing Commander-in-Chief NATO Naval Forces Southern Europe, Admiral Mario Angeli, paid a courtesy call at the national defense ministry yesterday.

    Adm. Angeli was received by National Defense Under-secretary Dimitris Apostolakis and the Chief of the National Defense General Staff General Athanasios Tzoganis. He also met with the Chief of the Navy General Staff, Vice Admiral Leonidas Paleogiorgos.

    Adm. Angeli will be replaced on July 17 by his compatriot, Admiral Spinotti.

    [16] Sainz wins 44th Acropolis Rally

    Athens, 11/06/1997 (ANA)

    Two-time world champion driver Carlos Sainz is the winner of the 44th Acropolis Rally.

    At the end of yesterday's sixth special stage (Analipsi II) which is the last at this year's rally, the Spanish driver was in the first place in the general standings with a total penalty time of 4:56.24.

    It is the third time Sainz, driving a Ford Escort, won the Acropolis Rally, after 1990 and 1994.

    Second place after 20 special stages went to Juha Kankkunen from Finland (Ford Escort) with 4:56.41 followed by Briton Richard Burns (Mitsubishi) with 4:58.31.

    [17] Athletic championships attract largest participation

    Athens, 11/06/1997 (ANA)

    At least 195 countries will participate in the World Athletics Championships at Olympic Stadium in Athens on August 1-10, creating a new international record regarding participation of countries in such an event.

    A total of 2,677 athletes will participate (1,626 men and 1,051 women). The previous record occurred at the world athletics championships in Goteborg in 1995 with 1,804 athletes from 191 countries participating.

    Greece will participate in the games with 71 men athletes and 56 women. The largest team will be that of the United States with 74 male and 65 female athletes, followed by Germany with 116 athletes, Kenya 88, Britain 86, France 84, Russia 82, Spain 78 and Italy with 77.

    [18] Albanian boat found with 300 kgs of hashish

    Athens, 11/06/1997 (ANA)

    The Greek coast guard yesterday impounded an Albanian speedboat carrying drugs and arms after being chased by a coast guard patrol and the exchange of fire near the northwestern port of Igoumenitsa.

    Coastguard officials said the boat was carrying 300 kilograms of hashish, two Kalashnikov rifles and ammunition, and a hand grenade.

    The chase began as the 6-meter outboard motor speedboat opened fire on the patrol boat and tried to head back to the Albanian coast after the patrol boat called for it to stop and be searched.

    The patrol boat returned the fire, obliging the speedboat to stop, while its passengers jumped ship and swam to nearby rocks.

    [19] Debate on nat'l health system bill draws heated opposition

    Athens, 11/06/1997 (ANA)

    Debate began yesterday in the relevant Parliamentary committee on a health ministry bill concerning development and modernization of the National Health System (ESY), drawing strong reactions from the opposition.

    Deputies of the main opposition New Democracy party termed the bill "a monstrosity' and called for its withdrawal, saying that it is a purely partisan bill that only anticipates more appointments at all levels.

    ND speaker Nikos Anastasopoulos said the bill being promoted by the government is a "rag", while Communist Party of Greece (KKE) representative Apostolos Tasoulas said it was "false".

    Coalition of the Left and Progress deputy Mustafa Mustafa also expressed opposition to the bill, while Democratic Social Movement (DHKKI) representative Yiannis Arapis said the bill does not remedy the existing ailing system.

    Health Minister Costas Geitonas will state his position during today's meeting of the committee, while representatives of agencies concerned have been invited to express their views.

    [20] EU postpones talks on gas liberalization

    Strasbourg, 11/06/1997 (Reuter/ANA)

    Plans for an extraordinary meeting of European Union energy ministers later this month have been shel-ved because their differences over gas liberalization are too wide for them to reach a deal.

    "There will be no extraordinary Energy Council," a spokesman for EU Energy Commissioner Christos Papoutsis told Reuters on Tuesday, following a meeting between the Greek commissioner and Luxembourg Energy Minister Robert Goebbels.

    Luxembourg is due to take over the EU presidency from the Netherlands on July 1.

    The delay is a blow to the Dutch, who had hoped to broker a provisional deal to open up the EU gas market during their EU leadership despite the failure of attempts to find a compromise between those countries pushing for faster liberalization and their more reticent neighbors.

    Dutch Economic Affairs Minister Hans Wijers said after an inconclusive Energy Council on May 27 that he would consider calling fresh talks on June 24 if contacts with individual governments showed there was sufficient convergence of views.

    But Commission spokesman Costas Verros said the Dutch had told the Energy Commissioner on Monday they had abandoned the plan. EU governments are deeply divided over three crucial elements in gas liberalization -- how to structure market opening, how to treat long term take-or-pay contracts and what exemptions from competition rules to allow emerging markets and regions.

    Mr. Verros said Mr. Papoutsis and Mr. Goebbels both hoped work on narrowing the gaps over coming weeks would lead to new ministerial talks early in the autumn, so that a final accord to open up the EU gas market could be clinched on December 7.

    [21] Budget revenue up 11.8 percent in Jan-May

    Athens, 11/06/1997 (ANA)

    Finance Under-secretary George Drys repeated that the government would impose no new taxes in 1997 and that it had abandoned its 1996 policy of debt rescheduling.

    Briefing the parliamentary economic affairs committee on state revenue for 1997, Mr. Drys said that implementation of the budget would produce no major deviations.

    "Targets set in the budget are very difficult but attainable," he said. Revenue had risen by 11.8 percent in the first five months of the year compared with the corresponding period in 1996 to reach 3.2 trillion drachmas, Mr. Drys said.

    The ministry's computerized tax records division had completed cross-checks on tax returns submitted by tenants and proprietors and found infringements. It was due to deliver its findings on company invoices.

    Predicting the course of budget revenue for the rest of the year, Mr. Drys said that moneys from income tax, new state securities and privatization would rise.

    Ruling PASOK party deputy Dimitris Georgakopoulos stressed that the ministry had overestimated revenue while predicting that the government would be unable to collect property tax.

    Conservative New Democracy opposition deputies George Souflias, Anastasios Papaligouras and George Alogoskoufis also questioned the finance ministry's figures.

    [22] ATE AEDAK mutual funds exceed 400 billion drachmas

    Athens, 11/06/1997 (ANA)

    Mutual fund assets of ATE AEDAK (a subsidiary of the Agricultural Bank of Greece) has exceeded 400 billion drachmas.

    ATE's deputy governor and president of the group's mutual funds management company, Dimitris Santixis, told a press conference that from the beginning of the year the securities-development mutual fund produced a yield of 60 per cent.

    Mr. Santixis said the aim is to link the group's companies, adding that the network of ATE and its subsidiaries have increased possibilities of expanding and developing.

    [23] National Bank of Greece to lure foreign institutionals

    Athens, 11/06/1997 (ANA)

    National Bank of Greece will launch an advertising campaign abroad to lure foreign institutional investors into the domestic market following an upgrade for its custodian services unit, senior bank officials said.

    Inaugurating new premises for the unit, the officials said the bank already managed shares and debt paper for 1,600 Greek and foreign funds, representing capital of 1.5 trillion drachmas. Consultancy is part of the package. Part of the upgrade for the unit, opened by Governor Theodoros Karadzas, is an advanced technology computer system.

    National Bank's competitors for Athens-based custodian services are Citibank and Barclays.

    [24] Balkan ministers agree on regional trade center

    Athens, 11/06/1997 (ANA)

    Balkan ministers meeting in Thessaloniki yesterday agreed to create a regional center based in Turkey to promote trade.

    They also supported a proposal to extend the activities of the Bucharest-based Balkan Center for Small and Medium-Sized Enterprises to southeast Europe.

    [25] Athens Stock Exchange stages technical rebound

    Athens, 11/06/1997 (ANA)

    The Athens Stock Exchange staged a technical recovery on Tuesday after a four-session fall in prices which pushed the market below support at 1,600 points.

    The general index ended 0.88 percent higher at 1,603.84 points but turnover shrank to 13.9 billion drachmas as massive outflows for a public offer by Hellenic Telecommunications Organization (OTE) drained the market. Most sector indices scored gains.

    Banks rose 0.95 percent, Leasing was 1.83 percent up, Insurance gained 0.87 percent, Investment increased 0.72 percent, Industrials were 0.13 percent up, Construction fell 0.51 percent, Holding rose 0.73 percent and Miscellaneous rose 0.29 percent. The Parallel Market index fell 0.46 percent.

    Investors focused on OTE's shares ahead of its second share offer, starting today. Its price ended 200 drachmas higher at 7,105 on heavy volume.

    Broadly, advancers led decliners by 113 to 104 with another 25 issues remaining unchanged. Minerva, Ergodata, Kekrops and Flexopak scored the biggest gains, while Ermis, Parnassos and Mouriadis suffered the heaviest losses. National Bank of Greece ended at 36,310 drachmas, Ergobank at 18,050, Alpha Credit Bank at 19,750, Titan Cement at 25,400, Intracom at 13,100.

    [26] Greece backs French proposal on employment

    Athens, 11/06/1997 (ANA)

    The Greek government backs a French government proposal submitted to ECOFIN during its recent meeting in Luxembourg which envisages an extension to the Stability Pact containing measures to boost employment in the European Union, government spokesman Dimitris Reppas said.

    The spokesman clarified that the French government did not raise the issue of delaying the launch of Economic and Monetary Union.

    [27] Airport project completed for Kos

    Athens, 11/06/1997 (ANA)

    An airport development and modernization project for the Dodecanese island of Kos was completed in record time for the peak summer tourist season.

    The project, worth 3.7 billion drachmas, included extension of air terminal facilities, extension of landing slots by 35,000 square meters - up 100 percent from last year's capacity, runway extension to 2,400 meters, and the purchase of three new passenger buses.

    [28] Papaioannou calls for shorter working hours

    Geneva, 11/06/1997 (ANA - A.Davanelou)

    Labor and Social Security Minister Miltiadis Papaioannou called for a reduction in working hours during an International Labor Organization (ILO) annual summit in Geneva.

    "A reliable, supra-national organization such as the ILO can reduce government fears of a loss of competitive advantages should they make such adjustments, and pave the way for international adjustments to boost employment," Mr. Papaioannou told the conference.

    He noted that a reduction in working hours historically had been a factor to help stabilize labor markets, and that competitiveness would secure employment and growth.

    The conference is being held in Geneva June 3-19. Among topics for discussion are a 1996 international agreement to formally allow creation of private job search agencies in member-states.

    The General Confederation of Workers of Greece, representing nearly a million workers, opposes private agencies, saying they will lead to exploitation.

    [29] Intracom, BTK consider possibility of inter-Balkan cardphone network

    Sofia, 11/06/1997 (ANA)

    The Bulgarian Telecommunications Organization (BTK) and the Greece-based Intracom group are examining the possibility of establishing an inter-Balkan cardphone network aimed at unifying phone cards. The project was announced at a press conference by BTK President Dragostinov and Intracom President Socrates Kokkalis at the end of the joint Greek-Bulgarian Bulfon company's general assembly.

    In addition, Intracom expressed the intention to help in the project of replacing Bulgaria's 20,000 coin telephones, securing credits totaling US$300 million.

    [30] V. Papandreou says Russian tourist flow to Greece will increase

    Moscow, 11/06/1997 (ANA - D. Konstantakopoulos)

    In an interview with "Pravda-5" newspaper, Development Minister Vasso Papandreou expressed her conviction that in the near future Russian tourists will occupy third place among visitors to Greece after the Germans and the British.

    Ms Papandreou said 1.2 million tourists from eastern European countries visited Greece in 1996, a figure representing 12.2 per cent of Greece's total number of visitors. This figure is expected to increase to 1.35 million in 1997, or 13.5 per cent.

    She said traditional relations between Russia and Greece can contribute to a further significant increase in the number of Russian tourists, provided that problems are also resolved concerning the ease with which visas are given to tourists.

    Ms Papandreou said that in the framework of the European Union solutions are being examined to simplify the process for issuing tourist visas.

    End of English language section.


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