Athens News Agency: Daily News Bulletin in English, 97-07-24
From: The Greek Press & Information Office, Ottawa Canada <grnewsca@sympatico.ca>
ATHENS NEWS AGENCY BULLETIN (No 1245), July 24, 1997
Greek Press & Information Office
Ottawa, Canada
E-Mail Address: grnewsca@sympatico.ca
CONTENTS
[01] Greece marks 23rd anniversary of democracy's restoration
[02] Premier, political party leaders
[03] Olympic champion to sail from Sounion to Crete on windsurf board
[04] Athens pleased with US House resolution on Cyprus
[05] National defense restructuring discussed
[06] KYSEA meeting on Friday
[07] Gligorov says Athens rejected recent FYROM proposal on name
[08] Lebanon's Hariri to arrive today for official visit
[09] Premier chairs meeting focusing on major projects
[10] Simitis-Skandalidis meeting
[11] Government on 'green card' issue
[12] More consular staff to head to Moscow embassy
[13] Vartholomeos welcomed by Armenian-Greek youths
[14] Fouras presents figures for IAAF championships
[15] Two more IOC delegates tour Athens' Olympic facilities
[16] Female survivors of WWII labor camps call for restitution
[17] Ancient fish-farm discovered on Lesvos
[18] Summer sessions of 'social dialogue' outlined
[19] BBB leader on contacts with Arsenis
[20] Tzoumakas expresses opposition to CAP nationalization
[21] Greek telecom to award digital deal by Aug. 1
[22] Greek business group sees mixed economic outlook
[23] Greek equities end slightly up on blue-chip buying spree
[24] New Democracy lashes out at government over economy
[25] Dollar reaches new high against drachma
[01] Greece marks 23rd anniversary of democracy's restoration
Athens, 24/07/1997 (ANA)
Messages poured in from all of Greece's parties and political
leaders yesterday regarding the 23rd anniversary of the
restoration of democracy, after the fall of the seven-year
military junta.
Statements mostly touched on the achievements of Greece during
the past 23 years and the progress the country has made towards
European integration.
President of the Republic Kostis Stephanopoulos emphasized there
was no longer a problem of democracy in Greece.
"Democracy has been permanently restored and prevails, and the
present period of our political life is one of the smooth
functioning of our democratic institutions," the President's
message on the July 24 anniversary read.
Democracy was restored in Greece in July 1974 after the collapse
of the 1967-74 junta, following an abortive coup in Cyprus and
the subsequent invasion of the island republic by Turkey.
Ankara's forces continue to occupy 37 per cent of the island's
north, while in 1983 the occupied area's regime unilaterally
declared independence, recognized only by Ankara.
In further statements, the president said democratic rule was
not in itself sufficient for the prosperity and progress of the
Greek people.
"It is a fundamental condition, which we have already
consolidated, but much more still remains," he said.
He said it still remained for the Greek economy to reach the
level of the other European Union member-states, and for
successful confrontation of the national issues still pending,
"particularly repulsing Turkey's aggressiveness in the Aegean".
"We all desire normalization of relations and we all hope for a
good development of things, but we are also awaiting
ascertainment of the tactic to be followed by Turkey following
the declaration of principles in Madrid," Mr. Stephanopoulos
said.
The president noted that economic indicators had improved,
enabling optimism, "but more is necessary. Even quicker
development rates, increased productivity, combating of
unemployment, finding appropriate solutions to the farmers'
problems and meeting social needs more fully".
These, he added, were complex problems and difficult targets,
the attainment of which did not depend only on the disposition
of those in government.
"There are many (sides) which must contribute to the effort,
among them those exercising business activity, the working
people and the union representatives, particularly those of the
public sector, and the sincere co-operation of the farmers," he
said.
He said the vision of a fully developed and prospering Greece
shared by all needed to be realized to the same extent that full
restoration of democracy had been achieved.
[02] Premier, political party leaders
Athens, 24/07/1997 (ANA)
In his message on the anniversary, Prime Minister Costas Simitis
said the future Greece would be even more free and democratic,
adding that a cycle has closed with the years immediately
following the restoration.
"The challenge we have now is the equal participation of our
country in the European unification process, the effective
dealing with great problems of Greece and the (accumulated)
delays of decades past," Mr. Simitis said.
Greece's modernization and its strengthening as a country is a
challenge for all, and a goal that calls for "overcoming
outdated ways of thinking and setting new strategies".
He added that what was also necessary was promoting great
infrastructure changes that would improve the country's
competitive ability and "promote creativity, hard work, ethical
choices, high ambitions and great vistas into the future."
Mr. Simitis also issued a joint statement with the ruling PASOK
party, citing the party's contribution to restoring democracy
after the fall of the junta and called all "...creative,
productive and progressive powers of Greece" to contribute
towards meeting the goals of the new era.
Reviewing its policy, the party statement noted, "We are moving
quickly towards a comprehensive restructuring of democratic and
representational institutions and our economy."
It said the party was promoting "specific changes... on a
central and regional level" and a "modern national strategy able
and effective in defending our national interests and
guaranteeing the recovery of our national economy".
Main opposition New Democracy (ND) party leader Costas
Karamanlis said the anniversary "finds Greece at a critical
cross-road", because "politics are experiencing an unprecedented
crisis of unreliability".
Mr. Karamanlis conceded that the country's progression towards a
united Europe "has the approval of the majority of our people",
but he pointed out that "certain cowardly and socially heartless
policies undermine this progress and social cohesion".
The ND leader criticized the government for a lack of national
strategy and decisiveness, which he said leads to "retractions
and national dangers" and called on everyone to "show our powers
and not our weaknesses... to escape from the present gray
reality ".
The Communist Party of Greece (KKE) attributed the political
change in 1974 to an obligatory maneuver by "US and NATO
imperialists under pressure by popular struggle and the public
outcry at Cyprus' tragedy".
The party also charged that center-right and center-left powers
"which serve economic oligarchy" are unable to apply a popular
policy.
The Coalition for the Left and Progress (Synaspismos) called for
the "radical restructuring of political powers and the revision
of the country's political map".
The fall of the junta and restoration of democracy which
followed did not defeat anachronistic mentalities, it said,
charging that the two parties which ruled Greece since 1974 and
the choices they made "have led Greece to become the last rung
on the European Union ladder".
Democratic Social Party (DHKKI) leader Dimitris Tsovolas charged
that political life in Greece "is being poisoned daily by lack
of credibility and dignity and by hypocrisy, while the Greek
people are scorned, having to listen to the monotonous
(statement) that its poverty is the way to modernize the country
and society".
The party calls "every Greek citizen to make a new start, onto
new democratic and popular struggles for the true restoration of
political and financial democracy in Greece". Political Spring
(Pol.An) leader Antonis Samaras called for an end on "power
solely centered around the prime minister", since this power
makes a prime minister an "absolute ruler" under the existing
institutions.
The road to the year 2000 requires development, unity, national
dignity and radical reforms, he said, adding that "democracy
cannot be granted, but it must be won and be established".
[03] Olympic champion to sail from Sounion to Crete on windsurf board
Athens, 24/07/1997 (ANA)
Windsurfing gold medallist Nikos Kaklamanakis will attempt to
cross the Aegean from Cape Sounion to Crete on his windsurf
board next week.
He will set out from the beach at Sounion on the morning of July
30, while his first stop will be the island of Santorini, after
a 120-nautical-mile journey. He will cover the second part on
the next day, traveling from Santorini to Irakleio, Crete, where
he will finish (80 nautical miles).
The 1996 Atlanta Olympics champion's effort is supported by the
development ministry, the Greek National Tourist Organization
(EOT) and the Athens 2004 candidacy committee.
Mr. Kaklamanakis said he will be on his windsurf board for six
to eight hours on the first day and from five to seven on the
second. Winds permitting, he hopes to reach a maximum speed of
34 to 35 mph.
"With this undertaking I will advertise the beauty of Greece all
over the world, while at the same time our country's effort to
host the Olympic Games in 2004 will be given a boost," he said.
[04] Athens pleased with US House resolution on Cyprus
Athens, 24/07/1997 (ANA)
The government yesterday welcomed as "very positive" a US House
of Representatives resolution on the Cyprus problem, which calls
for the demilitarization of the island republic and withdrawal
of the Turkish occupation forces.
Government spokesman Dimitris Reppas said that if the points
contained in the resolution constituted "active elements of US
foreign policy, then a permanent and viable solution of the
Cyprus problem may be attained".
The spokesman noted, however, that similar texts had in the past
been adopted by representative bodies of the United States "but
they were not implemented in the country's foreign policy".
The US House plenary passed on Tuesday with a majority of 417
votes in favor, 4 against and 14 abstentions Concurrent
Resolution 81, which was approved last month by the House
International Relations Committee and initiated by its chairman,
Ben Gilman.
The House resolution (the Senate concurring) calls on the
Congress to "reaffirm its view that the status quo on Cyprus is
unacceptable and detrimental to the interests of the US in the
eastern Mediterranean and beyond".
It considers that "lasting peace and stability on Cyprus could
be best secured by a process of complete demilitarization
leading to the withdrawal of all foreign occupation forces, the
cessation of foreign arms transfers to Cyprus and provide the
alternative internationally acceptable and effective security
arrangements as negotiated by the parties".
Commenting, meanwhile, on the joint declaration signed Sunday by
Turkish Deputy Prime Minister Bulent Ecevit and Turkish Cypriot
leader Rauf Denktash, Mr. Reppas underlined that the latter was
not acting independently but "consti-tutes an extension of
Turkish foreign policy".
The spokesman added that the declaration was identical to one
signed in January this year by Turkish President Suleyman
Demirel and Mr. Denktash.
The latest declaration outlines a series of steps towards
partial economic integration and promotes co-operation in the
fields of security, defense and foreign policy.
"Attempts are being made to dynamite efforts for a settlement of
the Cyprus problem and this kind of behavior must be isolated,"
Mr. Reppas said.
[05] National defense restructuring discussed
Athens, 24/07/1997 (ANA)
Prime Minister Costas Simitis and national defense ministry
officials met yesterday and discussed the nation's policy of
defense and its new structure.
National Defense Minister Akis Tsohatzopoulos said the policy
relied on the strategic document on the evolvement of the 1985
defense dogma.
According to this, the danger for national interests lies in the
east, but this is being expanded to include a dynamic reply to
any provocation.
The restructuring of the armed forces has begun in the army and
will have been completed by the end of 1998. The main purpose of
restructuring is to form modern and flexible military formations
able to respond quickly to any provocations, Mr. Tsohatzopoulos
said.
[06] KYSEA meeting on Friday
Athens, 24/07/1997 (ANA)
Prime Minister Costas Simitis will chair a Cabinet meeting on
Friday focusing on defense policy, government spokesman Dimitris
Reppas said today. Mr. Reppas said the Cabinet would also be
discussing the structure of the armed forces, the creation of
new units and the acquisition of new defense equipment.
[07] Gligorov says Athens rejected recent FYROM proposal on name
Skopje, 24/07/1997 (ANA)
The president of the Former Yugoslav Republic of Macedonia
(FYROM) Kiro Gligorov disclosed on Tuesday that in a meeting he
had last week with the head of the Greece's liaison office here,
he was informed that Athens does not accept a FYROM proposal
regarding the name of the former Yugoslav state.
Mr. Gligorov made the comment on FYROM's state-run television
during an interview.
The specific proposal made by Skopje was submitted in writing
during recent talks in New York. It anticipated the use of the
name "Republic of Macedonia" internationally and would have
allowed Greece the right to use any name it wanted to refer to
FYROM in bilateral relations.
Additionally, Mr. Gligorov said his country has not accepted any
of the proposals made by UN mediator Cyrus Vance concerning
FYROM's name.
He added, however, that Skopje does not monopolize the name
"Macedonia", since Greece has sovereignty over 51 per cent of
the wider geographical region known as Macedonia, while at the
same time parts of the region also lie in Bulgaria and Albania,
he said.
Mr. Gligorov referred to a series of agreements whose signing by
Greece is pending, adding that Athens has recognized his state
and termed relations good.
He further referred to the bilateral cultural contacts and to
the fact Greece granted 400,000 travel visas to FYROM citizens
in 1996.
[08] Lebanon's Hariri to arrive today for official visit
Athens, 24/07/1997 (ANA)
Lebanese Prime Minister Rafik Hariri is expected to arrive in
Athens today on a two-day official visit, during which he will
have talks with Premier Costas Simitis, government spokesman
Dimitris Reppas announced yesterday. Mr. Hariri will also have
talks with Parliament President Apostolos Kaklamanis, the
spokesman added.
[09] Premier chairs meeting focusing on major projects
Athens, 24/07/1997 (ANA)
Prime Minister Costas Simitis chaired a meeting on the course of
the major projects and projects of a national and regional scale
at the Maximos Mansion yesterday.
The meeting was attended by Environment, Town Planning and
Public Works Minister Costas Laliotis and Under-secretary
Christos Verelis.
In a statement afterwards, Mr. Laliotis said an account of the
course of projects during the first seven months in 1997 is
positive. This year is considered particularly crucial for the
course of the whole program, since projects budgeted at 500
billion drachmas are being carried out which constitute 33 per
cent of the total public works program.
Mr. Laliotis said both the rate of works being carried out and
the rate of absorbing funds are considered satisfactory.
It was pointed out that the processes for the conclusion of a
loan with the European Investment Bank for the construction of
one of the largest projects, the Rio-Antirrio bridge, will have
been completed by the end of July.
[10] Simitis-Skandalidis meeting
Athens, 24/07/1997 (ANA)
Prime Minister Costas Simitis held talks with PASOK Secretary
Costas Skandalidis at noon yesterday. No statements were made
afterwards.
According to reports, the talks between the two men focused on
all issues concerning the ruling party's plan of action.
[11] Government on 'green card' issue
Athens, 24/07/1997 (ANA)
The government confirmed yesterday that it intended to make its
policy on illegal immigrants residing and working in the country
"more specific". Replying to reporters' questions, government
spokesman Dimitris Reppas said the issue would again be
discussed by the Cabinet at a forthcoming meeting.
He clarified, however, that this did not signal a change in
policy but simple that the government would it more specific.
Labor Minister Miltiades Papaioannou said yesterday that the
government was thinking of reconsidering its policy on illegal
immigrants and not excluding Albanians and migrants from other
countries bordering Greece from the right to become registered
and acquire legal status.
According to two presidential decrees approved by the Cabinet on
June 27, foreigners and illegal immigrants living and working in
Greece will be able to be registered as of September 1.
When the decrees were initially approved, their provisions would
have applied to about 200,000 of the estimated 450,000 illegal
immigrants currently in the country, because laborers from
countries sharing borders with Greece were not covered by the
new legislation.
In effect, this exempted immigrants from Albania, Bulgaria,
Turkey and the Former Yugoslav Republic of Macedonia.
[12] More consular staff to head to Moscow embassy
Athens, 24/07/1997 (ANA)
The foreign ministry said yesterday it would be sending more
personnel to the consular authorities at the Greek embassy in
Moscow to cope with the visa applications submitted by
individuals wishing to travel to Greece.
According to a ministry announcement, a problem had arisen in
the processing of visa applications due to the recall of an
administration employee and a policeman whose presence in Athens
was requested "for an official administrative inquiry".
The ministry noted that the consular authorities gave priority
to group visa applications, adding that the extra staff to be
sent in the next few days would soon clear the work backlog.
New consular authorities have recently been established in
several countries of the former Soviet Union, at St. Petersburg,
Novorosiisk, Yerevan, Baku, Tbilisi and Odessa, apart from those
which were already set up in Moscow and Kiev.
According to the ministry, they were established "in order to
strengthen our economic, cultural and tourism relations with
these countries".
[13] Vartholomeos welcomed by Armenian-Greek youths
Yerevan, 24/07/1997 (ANA - A. Kourkoulas)
Armenian youths of Greek descent welcomed visiting Ecumenical
Patriarch Vartholomeos at the entrance to the Greek community of
Gumry, in northwest Armenia, yesterday.
Vartholomeos, who is on an official visit to Armenia, was
accompanied by Armenian Patriarch Karekin I and the Greek
ambassador to Armenia, Iakovos Spetsios.
The ethnic Greek community at Gumry, formerly known as
Leninekat, was founded at the end of the 18th century and today
counts close to 700 people, all living under difficult economic
conditions.
[14] Fouras presents figures for IAAF championships
Athens, 24/07/1997 (ANA)
"We are in the final stretch and everything is ready for Greece
to stage its largest sporting event since the first modern
Olympic Games in 1896, the World Athletics Championships in
Athens," Sports Under-secretary Andreas Fouras told a press
conference yesterday.
Mr. Fouras said the benefit for the country from the games would
be enormous, noting that "the image of Greece will be at the
center of international attention, a fact which cannot be
measured in terms of economic magnitudes".
Presenting financial figures pertaining to the staging of
"Athens '97", Mr. Fouras said the organizational expenses were
estimated at 4.8 billion drachmas, which included the
800-million-drachma cost of the opening ceremony.
"However, we anticipate receipts of three billion drachmas from
the sale of tickets, 500 million drachmas in earnings from
athletes' accommodation and a large sum from the renting of
various facilities." Commenting on the investments realized in
order to stage the championships, which begin on Aug. 1, Mr.
Fouras said they would serve future events.
"Greek State Television was modernized using funds from the
Public Investments Program. A total of 2.8 billion drachmas was
invested in the Greek Radio and Television (ERT). This sum will
be more than covered by receipts from the coverage of the IAAF
championships and the World Basketball Championships in 1998,"
he said.
A sum of approximately 1 billion drachmas was invested to
modernize the Athens Olympic Sports Complex, a further 500
million drachmas on the country's sports infrastructure and
equipment for the new anti-doping control center, as well as 500
million drachmas on various athletics equipment.
[15] Two more IOC delegates tour Athens' Olympic facilities
Athens, 24/07/1997 (ANA)
Korea's International Olympic Committee (IOC) member and the
president of the International Tae Kwon Do Federation, UN
Young-Kim, concluded his visit to Athens yesterday.
In remarks shortly before departing Athens, Dr. Kim said: "The
candidacy of Athens for the Olympic Games in 2004 is definitely
much better than the previous one made for the 1996 Games."
Immediately after a ceremony, during which an olive tree bearing
his name was planted in the "Park for IOC members", Dr. Kim said
Athens "possesses good infrastructure, most projects have
already been completed and in general it constitutes a dynamic
candidacy."
The second IOC member visiting Athens these days, Samil Tarpisev
from Russia, was given a guided tour of the Peace and Friendship
Stadium and the Athens Olympic Stadium yesterday and he also
visited the headquarters of the Athens 2004 candidacy committee
at the Zappeion Hall.
Mr. Tarpisev also planted an olive tree in the "Park for IOC
members" yesterday afternoon.
[16] Female survivors of WWII labor camps call for restitution
Athens, 24/07/1997 (ANA)
A report by 16 Greek women who had been incarcerated in Nazi
forced labor camps during World War II was filed at the
Europarliament yesterday by Coalition of the Left and Progress
(Synaspismos) Eurodeputy Alekos Alavanos.
The report calls on the European Parliament to intervene and
request from Germany "to proceed to financial compensation and
the restitution owed them".
The women state in the report that "most of the Greek women who
had worked as hostages in forced labor camps in Hitler's Germany
are no longer alive. There are only 16 of us, and we are near
the close of our lives."
[17] Ancient fish-farm discovered on Lesvos
Athens, 24/07/1997 (ANA)
Archaeologists conducting excavations on Lesvos have discovered
what they believe is an ancient fish-farm at the Makry Yialo
site, dating back to Hellenistic times.
The find comprises a series of structures, believed to be
holding tanks, connected with each other by means of a small
canal running along one side.
At points along the canal, there are holes allowing the sea
water and fish to enter.
The find was discovered after strenuous efforts by
archaeologists of the 10th Department of Prehistoric and
Classical Antiquities, who worked in dreadful conditions,
namely, knee-deep in the sewage of southern Lesvos which is
channeled to the area.
Similar finds, but of the later Roman period - called vivarium -
have been found in the past on Crete.
[18] Summer sessions of 'social dialogue' outlined
Athens, 24/07/1997 (ANA)
Social partners, representatives of employers' and employees'
unions as well as the government yesterday outlined possible
convergence and major disagreements during an account of the
first summer round of "social dialogue".
The government appears optimistic that an agreement will result
by autumn, which will signal a moratorium between employers and
unions over the next crucial period of time. Employers are
participating with a feeling of certainty, while unions insist
in reminding of major disagreements concerning salaries,
pensions and working relations.
On his part, National Economy Minister Yiannos Papantoniou
called for the greatest possible social consensus.
He said the government promises a policy which will secure
competitiveness and convergence but, in parallel, a
contemporaneous increase in income, civilized working relations,
an increase in employment and a social state.
Mr. Papantoniou said the success of dialogue will depend on the
extent and depth of agreements which will result and noted the
institutional "incision" that if the partners agree they will
acquire an institutional role and will amend the correlation
between society and political representation.
Labor Under-secretary Christos Protopapas assessed that
important decisions will be taken in autumn, adding that the
fact that issues which would be considered a taboo a few months
ago are being discussed in the dialogue is proof of
responsibility.
General Confederation of Workers of Greece (GSEE) President
Christos Polyzogopoulos said the course of dialogue was
positive, but added that the unions' disagreements remain.
GSEE wants the consolidation of working people's real income and
a course towards its gradual but continuous improvement. The
unions discuss working relations but only as an overall
settlement which will bring back a feeling of security for
working people.
Federation of Greek Industries (SEB) President Jason Stratos
said the industrialists guarantee the purchase value of working
people but will not discuss increases above the increase in
national productivity and proposed an alignment of working
relations with what is in effect in the European Union.
Mr. Stratos predicted that "the large percentage of
self-employed in Greece cannot be maintained" and called for
speedier restructuring in the public sector.
Labor Minister Miltiades Papaioannou, summing up the discussion,
ascertained a climate of dialogue and positive prospects.
[19] BBB leader on contacts with Arsenis
Sofia, 24/07/1997 (ANA/BTA)
The leader of the Bulgarian Business Bloc (BBB), George Ganchev,
told a news conference on Monday that Education Minister
Gerassimos Arsenis will spare no effort for development of BBB's
project for the establishment of a Balkan Organization for
Co-operation.
Mr. Ganchev said he was told this by the Greek minister during a
recent visit by the former to Greece.
He also said he had invited Athens Mayor Dimitris Avramopoulos
to visit Sofia as a guest of the BBB.
[20] Tzoumakas expresses opposition to CAP nationalization
Brussels, 24/07/1997 (ANA - P. Pantelis)
Agriculture Minister Stephanos Tzoumakas expressed opposition to
the nationalization of the Common Agricultural Policy (CAP), set
out in the agriculture section of the European Commission's
"Agenda 2000" report on the EU expansion.
The report was presented to the Council of Agriculture
Ministers, the first under Luxembourg's presidency, by
Agriculture Commissioner Franz Fischler.
Mr. Fischler supported the need for a new revision of CAP to
tackle agricultural problems stemming from enlargement with
countries from central and eastern Europe and Cyprus. He said
CAP must be adjusted to the conditions of international
competition in light of new negotiations by the World Trade
Organization (formerly GATT) due to start in 1999.
Mr. Tzoumakas expressed serious reservations over the revision
proposed by the European Commission in the "Agenda 2000." He
said it proposes reforms with one-sided directions.
He further said he realizes the need to strengthen the
competitiveness of the European Union's agricultural products,
but considers full offsetting for all losses sustained by
agricultural income a decisive precondition for many years.
Mr. Tzoumakas said that with this precondition, a discussion can
take place on the European Commission's proposal for a gradual
decrease in the prices of leading agricultural products.
A more extensive discussion is expected to be made on the
agriculture section of the "Agenda" at the informal Council of
Agriculture Ministers in Luxembourg (September 22-23). However,
decisions will be taken by the Council of Ministers in November.
[21] Greek telecom to award digital deal by Aug. 1
Athens, 24/07/1997 (ANA)
Hellenic Telecommunications Organization (OTE) is expected to
appoint a supplier for 600,000-1,800,000 digital switches by
August 1 as part of a fast track investment plan for 1997-1998
worth 135 billion drachmas, OTE sources said.
OTE's traditional suppliers Intracom and Siemens are so far
tipped to win the contract, which is due for debate by OTE's
board in three meetings starting on Thursday, the sources told
the Athens News Agency. They said the state telecom was likely
to use direct award for the contract because forging long-term
agreements with suppliers or calling an international tender
would delay the procurement, which is urgently needed.
The board's second and third meetings to discuss the award would
be held on Tuesday and Friday next week, the sources said.
OTE president Dimitris Papoulias has informed Prime Minister
Costas Simitis of progress in the state telecom's investment
plan and fresh needs that have arisen, they said.
[22] Greek business group sees mixed economic outlook
Athens, 24/07/1997 (ANA)
The PASOK government has brought the economy closer to alignment
with other European Union countries but its policies have led to
distortions that could damage the market, the Athens Chamber of
Commerce and Industry (EVEA) said.
In its six-monthly economic report, EVEA identified deficits in
the balance of payments as the economy's main economic problem.
The trade group welcomed a gradual decline in consumer price
inflation but forecast the trend could reverse from October,
jeopardizing the government's target of 5.5 percent inflation
for December.
EVEA urged the government to adopt the following measures in
order to curb market distortions:
* Cuts in public spending rather than tax hikes to remedy fiscal
imbalances
* Broader measures to combat inflation, breaking a dependence on
foreign exchange policy and price restraint by public utilities
as anti-inflationary tools
* Curbs on privileges for state utilities that have virtual
monopoly status
* Backing for free competition
* Privatization
* Improvement of the labor market's institutional framework to
spur recruitment of the young
* Modernization of public administration through technological
and administrative changes
* Opening the education system to international competition
* Change in philosophy behind the social insurance system.
[23] Greek equities end slightly up on blue-chip buying spree
Athens, 24/07/1997 (ANA)
Greek stocks yesterday finished up 0.48 percent in
light-to-moderate trade fueled by demand for selected banking
and industrial blue chips.
The Athens general share index closed at 1,543.23 points,
outperforming the parallel market for smaller cap stocks which
lost 0.93 percent. Turnover was marginally up at 10.3 billion
drachmas.
Most sector indices scored gains with Banks rising 0.68 percent,
Leasing 0.85 percent, Insurance 0.32 percent, Investment 0.86
percent, Construction 0.23 percent, Holding 0.78 percent, and
Miscellaneous 1.62 percent. Bucking the trend were industrials,
which slipped 0.18 percent.
Advances led declines at 102 to 98 with 28 shares remaining
unchanged of 228 stocks traded.
The day's highest percentage gainers were Macedonian Textiles
(preferred), Imperio, Elfiko (preferred) and Benroubi
(preferred).
The biggest losers were Emborikos Desmos (preferred), Bank of
Attica, Singular and Bank of Athens (preferred). Among blue
chips, National Bank of Greece finished at 35,350 drachmas,
Ergobank at 17,145, Alpha Credit Bank at 19,220, Delta Dairies
(common) at 3,400, Hellenic Bottling at 9,985, Titan (common) at
14,240, Intracom (common) at 12,700, Hellenic Telecommunications
Organization at 6,265, and Aluminium de Grece (common) at 17,400
drachmas.
[24] New Democracy lashes out at government over economy
Athens, 24/07/1997 (ANA)
Main opposition New Democracy party leader Costas Karamanlis
yesterday charged the government with economic backsliding,
overspending and crippling the public with taxes.
"We are in an economic impasse due to obvious deviations from
targets set for inflation and the public deficit ... symptoms of
a deep market recession, rising unemployment, and greater taxes
are intensifying," he told reporters.
Mr. Karamanlis was speaking after a meeting with central bank
governor Lucas Papademos.
The government, which is working to lower high deficits, had
taken the easy way out by raising taxes rather than embarking on
structural reform of the economy, he said.
Mr. Karamanlis urged wide-scale privatization, cuts in public
spending, reform of public administration, liberalization of
markets, implementation of major infrastructure projects and a
gradual reduction in taxes.
"The present government cannot achieve this because its policy
is based on the existence of a non-productive state that
operates in a non-transparent way and does not help Greece to
forge ahead. It aims at nurturing the government's party
friends," he s aid.
New Democracy supported autonomy for the central bank, which is
envisaged under the Maastricht treaty, to enable it to shake off
government manipulation, Mr. Karamanlis said.
[25] Dollar reaches new high against drachma
Athens, 24/07/1997 (ANA)
The US dollar's parity with the Greek drachma reached a new
record high in the local currency market yesterday, while the
dollar exceeded the level of 1.82 marks in international money
markets.
The pound sterling also reached a record high against the
drachma yesterday, which is being strengthened considerably
against the deutschmark and the parity of the German currency
against the sterling reached its lowest level since October 1990.
The dollar parity's fixing rate closed at 285.42 drachmas,
increasing by 0.64 per cent and commercial banks will sell the
US currency at 289.701 drachmas today. The dollar parity has
increased 15.30 per cent against the drachma since the beginning
of the year.
The parity of the sterling also increased by 5.14 drachmas and
its fixing rate closed at 479.98 drachmas, while commercial
banks will sell the sterling for 487.180 drachmas. The sterling
has increased 14.69 per cent since the beginning of the year.
The increase in the value of the dollar is creating negative
repercussions for the Greek economy concerning the servicing of
the public debt and the development of the trade balance,
primarily the section regarding fuel.
The sales prices of gasoline increased by two drachmas per liter
and for diesel by 1.9 drachmas per liter as of midnight last
night.
End of English language section.
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