Athens News Agency: Daily News Bulletin in English, 98-04-08

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] Pangalos: Decissions on Aegean CBMs must now be taken

[02] WEU military chiefs' conference ends

[03] Pangalos says 'nothing annoying'in US ambassador's activities

[04] PASKE, PASOK youth group criticise gov't policy on DEKOs

[05] Elder Karamanlis hospitalised

[06] Karamanlis says expelled deputies won't be invited back

[07] Santer in Greece on Thursday

[08] Premier lauds Britain's stance on Greece, Cyprus

[09] Polish president continues Greek visit

[10] Meeting with Avramopoulos

[11] New foreign ministry Internet pages

[12] Gov't softens provisions on OA restructuring bill

[13] Balkan Cinema Festival at Harvard

[14] Meeting focuses on projects at Peace and Friendship indoor stadium

[15] WWF calls for protection of Strophadia islets

[16] Greece endorses Dr 351 bln public procurements plan for 1998

[17] Greeks back food boycott, consumer watchdog says

[18] DEH to create two subsidiaries

[19] 20 per cent of Hellenic Petroleum on the bourse

[20] Tourist Panorama '98 begins today

[21] Conference on Schengen's impact on tourist visas

[22] Austrian Post Office Savings Bank issues bond loan in drachmas

[23] IOBE study on Greek fur industry

[24] China's water resources undersecretary in Athens for talks

[25] Greece outlines economy to US investors

[26] Baltas underlines Greek economy's prospects

[27] Greek stocks slip on profit-taking

[28] Greek dockworkers start 48-hr strike today

[29] Peloponnese Bank launches operations

[30] Greece's black economy accounts for a third of GDP-EU

[01] Pangalos: Decissions on Aegean CBMs must now be taken

Athens 08/04/1998 (ANA)

"If the Turkish side does not try to create faits accomplis on other matters pertaining to national sovereignty, we shall be able to adopt favourable measures which will improve the climate in relations between the two countries," Mr. Pangalos said, citing as an example of such measures the extension of a summer moratorium on military exercises in the Aegean from two to four months

Mr. Pangalos, when asked to comment on special US presidential envoy Richard Holbooke's use of the term "Cyprus" instead of "The Republic of Cyprus," he said that he has also used the term often.

Furthermore, Mr. Pangalos said the important point is Mr. Holbrooke's reassurance that the US government recognises only the Republic of Cyprus.

The minister stated that the US view, of giving up the effort to reach a solution of the Cyrpus problem, is only natural, in case that there will be no progress. He called, however, on the US to pressure Ankara on the matter.

Mr. Pangalos noted that it is not important what Mr. Holbrooke meant on the issue of the Cyrpus-EU relations, since this is a matter involving the European Union and the European countries.

He added that it would be good that such allusions were fewer and the US should activate the independent arguments they have so as to bend Ankara's intransigence.

Mr. Pangalos, commenting on the proposed warplanes fight moratorioum over Cyprus, said he never spoke of such a moratorioum, rather he proposed a non- flight zone as it exists over Iraq with provision of who will have the responsibility of enforcement and control.

Mr. Pangalos said that his proposal was misunderstood and he repeated that US State Department spokesman James Rubin's comment was not connected to his proposal.

He added his belief that his idea has not lost every possibility of adoptation.

Response on press reports citing Ankara's involvement in terrorism: Mr. Pangalos also said that the government has been aware of a document pointing to the involvement of Turkish saboteurs in forest fires and bombings in Greece, saying Athens was continuing to lodge protests internationally.

An article in Sunday's edition of "Eleftherotypia" cites a confidential report by the "investigation department" of the Turkish prime minister's office, indicating secretties between the official Turkish state and the underworld during the premiership of Tansu Ciller. According to Eleftherotypia, the Turkish document states that "forest fires and bomb explosions on Greek islands were the work of Turkish intelligence services."

Referring in general to the scandals that rocked Turkish political life over the past few years, Mr. Pangalos said they were "symp-toms of the lack of transparency and democracy, which our country also experienced in the past, during the civil war".

He expressed a view that the majority of Turkish politicians and the Turkish people condemned such activities, and called on Ankara and Turkish authorities in general "to take the necessary steps."

Athens News Agency

[02] WEU military chiefs' conference ends

Athens 08/04/1998 (ANA)

Greece holds the organisation's rotating six-month presidency.

The meeting, at a seaside hotel at the Vouliagmeni resort outside Athens, focused on issues concerning the upgrading of the WEU's operational capabilities and the strengthening of relations between the WEU, NATO and the European Union.

In parallel, the presence of the WEU group in Albania was decided for an extra year, until April 12, 1999. The group is responsible for training Albania's police forces.

The advantages were also presented from the possible participation of the WEU's Military Committee President in NATO's Military Committee. It was considered that this will contribute to and strengthen cooperation between the WEU and NATO in common opera tional and military issues. Participation must be guided by the object and not by processes. The 18 military chiefs were briefed on the development of a series of issues such as the harmonisation of mechanisms and crises management processes.

Other issues were the principles and clauses for the creation of headquarters, for an operational and regular force, which will implement the WEU's missions.

The preconditions for the participation of candidate countries in NATO, namely the Czech Republic, Hungary and Poland, in the WEU's work concerning cooperation with NATO.

Regarding the issues of crises management exercises, the WEU's permanent council decided that WEU countries which have not declared participation can attend meetings without playing an active role, while observers from international organisations will be invited to contribute with their experience and their special knowledge.

Lastly, the WEU's work group for logistics issues will not discuss classified WEU or NATO issues when associate members, observers and associate partners participate in it, who will be unable to use the right of veto at discussions, according to the rev ised framework prepared.

Proposals made by military chiefs will be raised for approval at the conference of foreign affairs and defence ministers, to be held on Rhodes on May 11-12.

Karadayi : In a related development, Turkish military chief Gen. Ismail Hakki Karadayi said yesterday that all problems between Athens and Ankara could and should be resolved through bilateral meetings and well-intentioned dialogue.

Gen. Karadayi was speaking to reporters on the sidelines of the WEU meeting. The Turkish general had a meeting on Monday with his Greek counterpart, Gen. Tzoganis, which provided an opportunity for an exchange of views on bilateral and military issues.

Referring yesterday to what he called his "informal" meeting with Gen. Tzoganis, Gen. Karadayi said they had both expressed their "positive stance" regarding possible future meetings.

On the results of the WEU meeting, Gen. Karadayi said Turkey would be taking part in exercises scheduled by the organisation's headquarters on equal terms with the other WEU states.

Turkey is an associate member of the WEU. Only EU countries can become full members.

The meeting also focused on the WEU's role as the potential defence arm of the EU, its involvement in NATO planning and the use of NATO equipment in peac ekeeping and humanitarian missions.

Athens News Agency

[03] Pangalos says 'nothing annoying'in US ambassador's activities

Athens 08/04/1998 (ANA)

At the same time, he dismissed a heated verbal exchange in Parliament on Monday between Parliament President Apostolos Kaklamanis and Alternate Foreign Minister George Papandreou over recent statements by Mr. Burns, saying it was unacceptable for the Parliament president to intervene on the substance of parliamentary discussions.

Mr. Pangalos attributed any controversy over Mr. Burns' statements to a "bad precedent" in Greece regarding the activities of US ambassadors "under other conditions and in different times".

Mr. Kaklamanis yesterday remained adamant in his insistence that the US ambassador was acting like a "proconsul" and should be "kept in check", while he declined comment on a US State Department statement giving Mr. Burns full support.

In a Parliament debate Monday night on a tabled question by a Communist Party of Greece (KKE) deputy Orestis Kolozov regarding Mr. Burns' recent public activities, Mr. Kaklamanis told Mr. Papandreou that the US envoy should be kept in check and was acting like a "proconsul" in Greece, adding that it was unacceptable for foreign ambassadors to officially visit military and police officers or public sector officials.

Mr. Papandreou replied that the US ambassador's recent tours and contacts "lie within the usual practice of democratic and liberal countries, provided that the rules of diplomatic etiquette are observed". On Monday evening, acting US State Department spokesman Jim Foley said in Washington that "Ambassador Burns enjoys Secretary of State Madeleine Albright's full confidence. We think he does an excellent job".

Mr. Pangalos told a press briefing yesterday that the limits of the activities of diplomatic representatives among allied countries was "quite broad nowadays, as there are much more open societies both in Europe and in America".

He said Monday night's incident was an "unprecedented phenomenon of the Parliament president intervening at the expense of the government" and in favour of the questioning MP.

"The incident," he said, "reflects the objectivity of the parliament president, the degree to which things have changed, and how democratically we function".

The foreign minister added that "the framework of Greek-American relations and the conditions themselves have changed".

"The US today is neither an opponent, nor a reigning authority," he said.

Mr. Pangalos described Greek-American relations as "excellent to exceptional", adding that in matters of general interest, the two countries "at times agree and at times disagree," aiming always at convergence or coincidence of views.

Gov't spokesman : On his part, government spokesman Dimitris Reppas said that as far as the government is concerned there is no "Burns issue".

Mr. Reppas added that Mr. Papandreou is conducting his duties with complete success and enjoys the prime minister's total support.

As for Mr. Kaklamanis' intervention, the spokesman said that the government does not comment on statements by political figures.

However he noted that the intervention of the Parliament president is not covered by the regulations of that body.

As for Mr. Burns, the spokesman said that the US ambassador is promoting his country's positions, while he added that Mr. Burns conducted his activities within the parametres of the Constitution, and can state his positions freely.

In a radio interview, Mr. Papandreou said that no moral or legal wrongdoing can be seen in the ambassador's actions.

He added that Mr. Burns is a US ambassador that has "publicly supported the role of our country in the Balkans and has supported in a very positive way our country's positions with our neighbouring country."

Main opposition New Democracy spokesman Aris Spiliotopoulos Mr. Kaklamanis expressed a concern and a dissatisfaction, which exists in all Greek citizens over some of the ambassador's activities.

However, he noted that some of the statements of the Parliament president "may have exceeded certain Parliamentary procedures."

Athens News Agency

[04] PASKE, PASOK youth group criticise gov't policy on DEKOs

Athens 08/04/1998 (ANA)

The ruling party's trade unionists underlined that the latest government measures were "returned to sender as unacceptable". They further stressed their rejection of privatisation plans for public utilities, and warned that the "comprehensive management of working hours" will lead to an increase in unemployment. A similar stand was adopted by PASOK's affiliated youth organisation (Athens first district), which also issued an announcement yesterday to express disagreement with government policy on DEKOs.

The announcement said the government was only taking into consideration the EU's instructions, ignoring the real facts of the Greece society.

Athens News Agency

[05] Elder Karamanlis hospitalised

Athens 08/04/1998 (ANA)

According to reports, the decision to hospitalise Mr. Karamanlis, 91, was taken after a cold last week developed into a slight chest pain and persistent cough.

ND leader and nephew of the statesman, Costas Karamanlis, said "all will go well" after his visit at the Hygeia Hospital. Former ND leader Miltiades Evert, after visiting the former president said that he is in good spirits and the fever has subsided.

Prime Minister Costas Simitis was informed of Mr. Karamanlis' health condition in London. He sent wishes to Mr. Karamanlis for a "speedy recovery."

Athens News Agency

[06] Karamanlis says expelled deputies won't be invited back

Athens 08/04/1998 (ANA)

Mr. Karamanlis was especially clear on his refusal to accept back former foreign minister Antonis Samaras, now the leader of Political Spring.

Turning to the government, Mr. Karamanlis said: "Elections will only come early if Mr. Simitis considers that to be in his benefit".

Athens News Agency

[07] Santer in Greece on Thursday

Athens 08/04/1998 (ANA)

During his stay, Mr. Santer will meet President Kostis Stephanopoulos, Prime Minister Costas Simitis and main opposition New Democracy party leader Costas Karamanlis.

On Thursday evening, Mr. Santer will be the key speaker at a dinner to be held within the framework of a conference organised by the periodical "The Economist". His address will be entitled "The European Union at the Dawn of the 21st Century".

Mr. Santer will fly to Iraklion on Friday evening for a three-day tour of Crete, during which he will deliver a number of speeches and meet with deputies, Eurodeputies and local authorities.

Athens News Agency

[08] Premier lauds Britain's stance on Greece, Cyprus

LONDON 08/04/1998 (ANA - G. Papachristou)

The premier's statements came at the end of a European Union socialist prime ministers' conference here, where Mr. Simitis met and discussed the Cyprus issue, among others, with his British counterpart Tony Blair.

In comments regarding the conference, he said that it examined socialist PMs' possibilities on affecting EU policy. He added that there was a common consensus on combatting unemployment.

Mr. Simitis said that the conference agenda included the possibility of increasing employment in the EU.

He noted that there were disagreements on both issues and noted that those focused on the difference of opinion between the EU's north and south, as well as between those who favoured harsher fiscal policies and those who where not willing to take furth er measures in that direction.

The Greek prime minister also noted that neither the EU as a group, or Greece by itself, can survive without international cooperation against the international speculative capital.

Athens News Agency

[09] Polish president continues Greek visit

Athens 08/04/1998 (ANA)

In statements after talks with Mr. Kaklamanis, Mr. Kwasniewski expressed satisfaction that Greece's Parliament will ratify in May a protocol for the accession of new members to NATO. Mr. Kaklamanis, meanwhile, announced that Parliament would today ratify a Greek-Polish Friendship and Cooperation Protocol. He underlined Greece's interest to Mr. Kwasniewski in negotiations on the accession of new countries to the European Union, particularly of Cyprus and Poland. Mr. Kaklamanis also briefed the

Polish president on Greece's initiatives for peace and cooperation in the Balkans. Mr. Kwasniewski, whose country will soon assume the OSCE presidency, said Warsaw valued Athens' efforts.

Athens News Agency

[10] Meeting with Avramopoulos

Athens 08/04/1998 (ANA)

In his address, Mr. Avramopoulos said Athens is bonded with Poland through the tens of thousands of expatriate Poles..."who are a bridge of cooperation between our two peoples and are known for their peaceful, hardworking and progressive character."

In response, Mr. Kwasniewski said: "I accept this award as a token of the close bonds and the spirit of friendship between the cities of Warsaw and Athens." He also expressed a wish that cooperation between the two cities increases and becomes the found ation for closer relations between Greece and Poland. The Polish president later addressed a foreign ministry event, citing Poland's achievements in the economic and social sectors.

Mr. Kwasniewski added that Poland's economy today has a 7 per cent annual rate of growth, while unemployment in industrial areas is under 7.6 per cent.

Athens News Agency

[11] New foreign ministry Internet pages

Athens 08/04/1998 (ANA)

The page is written in English and is directed mainly at politicians, businesspeople and opinion-makers overseas. Additionally, there is also a special page listing the stock markets of southeastern Europe.

Athens News Agency

[12] Gov't softens provisions on OA restructuring bill

Athens 08/04/1998 (ANA)

According to the provisions, all previous collective bargaining agreements and labour regulations are abolished upon publication of the law in the government gazette, rather than by decision of the company's board, thereby extending the life of provisions currently in force.

He also withdrew a stipulation that OA employees have to state within five days whether they accept the new labour regulations.

Meanwhile, the airline's employees are staging a 24-hour strike tomorrow to protest against the restructuring bill along with civil servants and workers covered by the General Confederation of Workers of Greece (GSEE).

Parliament will vote on the bill the same day.

Covered in the proposals are general provisions in the airline's regulations; flexible working hours for ground staff; a wage freeze for 1998-2000 at 1997 levels; a cut in a staff meals allowance backdated to April 1; and a commitment by ground staff to provide 40-64 hours of free labour annually in 1998-2000.

Flight attendants to sign draft agreement : According to reports, the representatives of the Flight Attendants Union were set to sign a draft agreement with the airline today, after agreeing on proposals regarding the composition of aircraft crews and accepting the curbing of meal benefits.

Meanwhile, the 24-hour strike of employees of the Civil Aviation Unions Federation (OSPA) was due to end at midnight yesterday, while at the same time a 24-hour strike was due to start for Olympic Aviation stewards.

According to Olympic Airways planning, 64 domestic and 34 international flights will be carried out today. Twenty-one domestic and two international flights will be cancelled. Passengers scheduled to travel today must communicate with the offices of Olympic Airways first.

According to data provided by the airline, over the period between Easter Wednesday and Easter Sunday 36,000 seats have been booked for international flights and 39,000 seats for domestic flights so far.

Gov't wants to make OA a market leader: spokesman : The government wants to make Olympic Airways a market leader and not merely save the ailing national carrier, spokesman Dimitris Reppas told reporters yesterday.

Debate on the government's plan to revitalise OA was due to start in parliament last night.

The bill has sparked strikes by workers in OA and the rest of the public sector.

Mr. Reppas said an agreement between OA's management and workers on the future of the airline would represent a great success, and that workers were showing a sense of responsibility.

He also said the nature of the plan would come to be better understood in the course of the parliamentary debate, which is due to end in a vote tomorrow.

Mr. Reppas was speaking after a government meeting also involving senior party officials.

New Democracy : The main opposition New Democracy party yesterday called on the government to privatise and restructure OA immediately through an international tender.

ND spokesman Aris Spiliotopoulos slamed what he called negotiations in the past few days between ruling PASOK party aligned trade unionists and PASOK's executive bureau that he alleged involved secrecy and bargaining.

OA could only offer good service to customers if it became viable, Mr. Spiliotopoulos said.

Athens News Agency

[13] Balkan Cinema Festival at Harvard

Athens 08/04/1998 (ANA)

Over a period of three days, April 10-12, six films will be screened: "The Time of the Gypsies", "Round Up", "Blind Chance", "The Oak", "Eskiye" and "Balkanizater".

Three distinguished professors from US and Canadian universities have been invited to participate in a roundtable discussion organised by the Socrates Kokkalis programme at Harvard. The event, to be addressed by Petros Kokkalis, will be held at Harvard's Kennedy Faculty in Boston tomorrow.

The issue to be discussed is entitled "The Serb Deadlock: The Policy of Nationalities in the Past Decade."

Athens News Agency

[14] Meeting focuses on projects at Peace and Friendship indoor stadium

Athens 08/04/1998 (ANA)

The tournament will be held in Greece this summer.

Mr. Fouras told Mr. Vassilakopoulos that the sports general secretariat will provide 700 million drachmas for the projects, while extraordinary economic aid will also be provided for cables at the stadium to facilitate impeccable television coverage of the games.

In another development, Mr. Fouras made arrangements for a military aircraft to fly to Belgrade yesterday to bring the players of the Red Star Belgrade basketball team to Athens to play a match against Panathinaikos at the Athens Olympic indoor stadium today for charity.

Athens News Agency

[15] WWF calls for protection of Strophadia islets

Athens 08/04/1998 (ANA)

WWF's statement came in the wake of church organisations' complaints of illegal hunting on the islets, which are part of the European Union programme "Nature Network 2000."

Athens News Agency

[16] Greece endorses Dr 351 bln public procurements plan for 1998

Athens 08/04/1998 (ANA)

This year's programme, which was announced three months earlier than last year in order to hold tenders by the end of 1998, was formally endorsed by a development ministry committee.

A ministry statement yesterday said that measures had been taken to ensure greater transparency in all contracts exceeding one billion drachmas and a unified process of procurement had been adopted for certain products.

Athens News Agency

[17] Greeks back food boycott, consumer watchdog says

Athens 08/04/1998 (ANA)

INKA, which called the five-day boycott that began on Monday, reported that in some areas nearly 38 percent of consumers took part in the protest covering meat and farm produce.

"The positive response by consumers to INKA's call for the boycott exceeded even the most optimistic forecast," the watchdog group said in a statement.

A survey showed that nine out of ten consumers agreed with the boycott and seven out of ten thought the results would have a positive effect on prices.

INKA called the boycott in order to force prices down through lower demand.

The sharp price hikes stem from the drachma's devaluation on March 14 and wintery weather conditions in the same month, which also led to profiteering.

Athens News Agency

[18] DEH to create two subsidiaries

Athens 08/04/1998 (ANA)

One of the two firms will be a joint venture with Alpha Finance - 50 per cent each - and US$1 million in share capital.

According to the decision, the company will be based in Bucharest and will be responsible for research, study as well as evaluating business activities in the electrical power sector.

The second of the subsidiaries will be a joint DEH-GDFI company, named "KOZEN HELLAS S.A."

Athens News Agency

[19] 20 per cent of Hellenic Petroleum on the bourse

Athens 08/04/1998 (ANA)

She was speaking during a parliamentary committee meeting on public utilities (DEKOs).

Replying to deputies of the main opposition New Democracy party, who called for a 40 per cent participation in the bourse, Ms Papandreou said that relevant legislation sets 25 per cent as the maximum percentage.

Athens News Agency

[20] Tourist Panorama '98 begins today

Athens 08/04/1998 (ANA)

The event is the largest exhibition for domestic tourism.

Exhibitors are estimated to number about 600 - hotels, tourist offices, cruise ships, yachts, etc - while Crete will be the honoured region this year, and will be promoted in a special space.

The exhibition, organised by the Organisation D&G Kalofolias, will be held under the sponsorship of the Greek National Tourism Organisation (EOT) and will be supported by practically all of the country's tourist agencies.

The purpose of the exhibition is to bring tourist enterprises and local tourist destinations into immediate contact with the public. To this end, there will be several offers and special prices for visitors.

The "Tourist Panorama" exhibition was visited by 56,000 people and 4,500 commercial representatives last year. It will last until Sunday and will be open to the public from 4 p.m. to 10 p.m. today; 1 p.m. to 10 p.m. tomorrow and on Friday; 10 a.m. to 10 p.m. on Saturday and from 10 a.m. to 9:30 p.m. on Sunday.

Athens News Agency

[21] Conference on Schengen's impact on tourist visas

Athens 08/04/1998 (ANA)

On Monday, the Federation of Tourist Offices and HELEXPO organised a conference regarding the repercussions on tourism from implementation of the Pact and presented conclusions yesterday.

Union President P. Bamidis and board member Erofili Pantelidou said that since the beginning of the year, when Greece has been implementing the Schengen Pact, a decrease in tourist arrivals is being observed primarily from Russia, other former Soviet re publics and Balkan countries. They also expressed concern that arrivals from these countries will be limited over the summer months.

They also noted major delays due to bureaucratic red tape and staff shortages at Greek embassies and consulates.

They proposed using provisions in Article 5, Paragraph 2, which allows for a deviation in the Pact for reasons of national interest.

Mr. Bamidis said that the foreign ministry is examining the implementation of the Article.

Federation representatives said the solution of a national visa chosen by the ministry is unproductive, as Ms Pantelidou noted, since 3-4 days are required for issuance in Moscow, and consequently those wishing to come to Greece as tourists are led to a cancellation of the trip in order to avoid the inconvenience.

Athens News Agency

[22] Austrian Post Office Savings Bank issues bond loan in drachmas

VIENNA 08/04/1998 (ANA - D. Dimitrakoudis)

The five-year loan will amount to five billion drachmas (202 million Austrian shillings). For the first year, the nominal interest rate will be set at 8.625 per cent and for the remaining four years at 7.125 per cent. The Austrian Post Office Savings Bank referred to 7.082 per cent average yield. The chief managers of the bond loan are the National Bank of Greece and Banca Commerciale Italiana.

Athens News Agency

[23] IOBE study on Greek fur industry

Athens 08/04/1998 (ANA)

IOBE adds that the sector's significance is decisive for the economic, social and demographic development of western Macedonia.

According to the study, most domestic fur-producing units (about 5,000, with the majority being small handicraft manufacturers and home-based businesses) are concentrated in the wider region of Kastoria and Siatista. About 15,000 people are employed eit her directly or indirectly in the trade, accounting for almost 70 per cent of total employment in the region.

The sector produces about two million pieces of readymade fur clothing and accessories, while 90 per cent of this quantity is exported and the remaining 10 per cent is sold in Greece - 8 per cent to tourists and only 2 per cent to Greek nationals.

Total exchange revenues in the sector exceeded 218 million Ecu, according to 1996 figures. The main export markets are Russia, Germany and the United States.

Athens News Agency

[24] China's water resources undersecretary in Athens for talks

Athens 08/04/1998 (ANA)

Cooperation between the two countries in the agricultural sector is anticipated by an economic, industrial and technological cooperation agreement signed in 1992.

Among others, Mr. Geranidis presented Greek programmes concerning the conservation of water in agriculture and urban uses, as well as the country's small-scale irrigation systems.

Athens News Agency

[25] Greece outlines economy to US investors

Athens 08/04/1998 (ANA)

American businessmen and investors have shown growing interest in the Greek economy, particularly after the drachma's entry into the European Union's exchange rate mechanism and a 13.8 percent devaluation linked to entry, both on March 14.

Mr. Xanthakis said that more than 3,000 Greek firms were active in southeastern Europe, many of which were subsidiaries of companies listed on the Athens bourse.

National Economy Undersecretary Alekos Baltas outlined major progress made by the economy since 1996, particularly in regional development and in the role played by Thessaloniki in promoting economic relations with neighbouring countries.

He also detailed investment opportunities that have arisen since the country's entry into the ERM.

"Greece offers more opportunities because of its strategic position in southeast Europe and its increasingly profitable relations with its Balkan neighbours," Mr. Baltas told the forum.

Former US ambassador to Greece, Thomas Niles, briefed participants on the economic and political factors influencing the investment climate in southeastern Europe.

State Ionian Bank of Greece was one of the forum's sponsors.

The bank's governor, Haris Stamatopoulos, underlined the progress made in a modernisation and restructuring process for the country's banking system.

He also analysed the role of Greek banks in the privatisation programme.

Costas Bakouris, managing director of the Athens 2004 Olympic Games organising committee, spoke of the total transformation of Athens and of Greece that major projects under construction will achieve.

The Union of Greek Industry's chairman, Iason Stratos, spoke of a new favourable climate in the country for foreign investments after the government's decision to participate in the single European currency by 2001. The managing director of Hellenic Telecommunications Organisation (OTE), George Chrissolouris, presented the company's programme to upgrade the national telecoms network and introduce new services.

He also outlined OTE's prospects in the fully liberalised telecoms market by 2001, and its role as a major player in the Balkans.

American economists and analysts praised the country's economic performance and expressed optimism that Greece would participate in European economic and monetary union by 2001, as planned.

Athens News Agency

[26] Baltas underlines Greek economy's prospects

NEW YORK 08/04/1998 (ANA - M. Georgiadou)

According to Mr. Baltas, everyone has now become aware of the fact that foreign investments in Greece will rise in the immediate future, while uncertainty prior to the drachma's ERM entry has faded.

Speaking on his US contacts, the Greek undersecretary said they had a double purpose: firstly, to secure cooperation and investments in Greece itself, and secondly, to promote Greece, and especially Thessaloniki, as a centre for business and investments activities by the US in the Balkans, as well as in nations of the former Soviet Union.

He also said that the government was determined to go ahead with required structural changes, irrespective of the "political cost", in order to make sure that the country will join the euro in 2001.

Replying to another question about a new devaluation of the Greek currency, Mr. Baltas said:

"We proved that the drachma managed to cope with pressures, and our entry into the euro in 2001 will take place under the present parity."

Athens News Agency

[27] Greek stocks slip on profit-taking

Athens 08/04/1998 (ANA)

Traders said market sentiment remained positive and that investors were turning to smaller capitalisation stocks.

The general index ended 0.29 percent off at 2,129.08 points. Sector indices were mixed.

Banks fell 0.53 percent, Insurance rose 1.16 percent, Investment was 0.15 percent up, Leasing dropped 1.41 percent, Industrials eased 0.46 percent, Construction rose 2.95 percent, Miscellaneous fell 1.88 percent and Holding was 3.21 percent higher.

The parallel market index for small cap companies fell 1.28 percent while the FTSE/ASE-20 index dropped 0.33 percent to 1,262.74.

Trading was active with turnover at 62.5 billion drachmas. Broadly, decliners led advancers by 124 to 113 with another 31 issues unchanged.

Sarandopoulos Mills, Hellenic Biscuits, Halcor, Varyte, Alte, Delta Informatics, Hellenic Sugar and Attica Aluminium scored the biggest percentage gains at the day's 8.0 percent limit up.

Daring, Bank of Athens, Aspis Invest and Papoutsanis suffered the heaviest losses.

National Bank of Greece ended at 38,400 drachmas, Ergobank at 24,050, Alpha Credit Bank at 25,940, Delta Dairy at 3,700, Titan Cement at 23,475, Intracom at 19,995 and Hellenic Telecommunications Organisation at 8, 010.

Athens News Agency

[28] Greek dockworkers start 48-hr strike today

Athens 08/04/1998 (ANA)

In addition, the Panhellenic Seamen's Federation (PNO) will take part in a 24-hour nationwide strike called for tomorrow by the General Confederation of Greek Workers (GSEE). PNO's stoppage begins at 6 am local time.

Greek seamen are protesting against the government's policy of austerity and the abolition of labour rights, PNO said in a statement yesterday.

At a branch level, PNO is demanding the signing of collective labour agreements that will take into account a 14 percent devaluation of the drachma last month.

The federation also wants to see jobs safeguarded and cabotage restrictions kept in place.

Athens News Agency

[29] Peloponnese Bank launches operations

Athens 08/04/1998 (ANA)

The Tripolis-based bank, set up as a company with a broad share base, aims to focus on investment programmes for development in the Peloponnese.

It also offers a wide range of retail banking products.

Athens News Agency

[30] Greece's black economy accounts for a third of GDP-EU

Athens 08/04/1998 (ANA)

The statement said that undeclared financial activity in Greece was estimated at between 29-35 percent of the country's GDP, substantially higher than an EU average of 7-16 percent.

Italy was in second place with a black economy percentage ranging between 20-26 percent of GDP, followed by Spain with a 10-23 percent rate.

The Nordic countries showed the lowest rates at 2-7 percent. Germany, France and the UK showed rates ranging from 4-14 percent of GDP.

The Commission said that the black economy flourished in sectors in which many people worked like tourism, hotels and restaurants, self-employed professions, services, transport and textiles.

Immigrants, pensioners, women and youth were the major categories of the population that were mainly employed in the black economy.

The European Commission urged EU member-states to combat the phenomenon ahead of planned economic and monetary union.

Athens News Agency

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