Athens News Agency: Daily News Bulletin in English, 98-05-08

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

CONTENTS

[01] Simitis reiterates Greece`s commitment to enter EMU in 2002

[02] Gov't reiterates no PKK offices in Athens

[03] US satisfied with Athens' response

[04] Premier says Ankara not in a position to blackmail Cyprus' EU accession course

[05] Spanish royal couple in Athens at the end of the month

[06] Karamanlis calls exclusion from EMU a dramatic loss for Greece

[07] Tsohatzopoulos pessimistic about Aegean CBMs

[08] Rhodes braces for tight security WEU summit

[09] Nano in Thessaloniki calls for peaceful solution for Kosovo

[10] Better law enforcement cooperation between Greece, Albania discussed

[11] Greek MPs calls for end to Iraqi sanctions

[12] Finnish, Greek ties in good shape, Kaklamanis says

[13] Int'l symposium on Rigas in Belgrade

[14] ND MPs support links between church, state

[15] Violence as teachers, police meet on city streets

[16] Gunfire between police, drug smugglers near border

[17] Piraeus mayor to appeal incarceration, KEDKE criticism of decision

[18] 'Key-chain' gun lands man in jail

[19] Athens daily points to changes for Olympic construction

[20] Thessaloniki to host SE Europe MPs meeting

[21] New EYDAP president

[22] Economic News

[23] EU support for Kalavryta-Diakofto rail line reiterated

[24] Cohesion Fund director comments on funding of major projects

[01] Simitis reiterates Greece`s commitment to enter EMU in 2002

Athens, 8/5/1998 (ANA)

"The great challenge for PASOK, as a socialist party, is to walk the thorny road of convergence without relegating to second place the weakest strata of society," he told a press briefing on the outcome of last weekend's EU summit, that allowed 11 membe r-states, excluding Greece, to launch EMU on Jan. 1, 1999.

"We seek greater social solidarity," he said, specifying youth, women and the long-term unemployed as the prime targets of the government's social policy.

"Greece, despite the narrow margins of its budget, shows a percentage increase of social spending, unlike prevailing trends in other EU countries, " he added, claiming that after EMU accession, Greece would intensify its social policy, as more funds wou ld be available for social protection programmes.

Responding to questions, he denied that taxation policy was hitting hard the underprivileged.

"A series of measures in the last two years, are directed at capital. Such measures are an annoyance to many (banks, businesses, stock market investors, etc) but certainly not the weakest strata," he stressed.

He said the target would be attained speedily and resolutely, on the basis of planning already announced, without any other surprises or new measures.

Defending his government's policy, he said: "Our policy was, and is, non- negotiable. It has the support of the vast majority of the public and of the (ruling) PASOK party."

The EU, he said, welcomed Greece's target of joining the third phase of EMU by Jan. 1, 2001, saying the economy had made substantial progress in meeting convergence criteria.

Greece would join the 15-nation bloc's single currency in 2002, he added.

The criteria required, said the prime minister, would be met within 1998 (including a fall in long-term interest rates), with the exception of inflation, where the hardest battle would be fought. He emphasised the importance of self-restraint at all lev els to achieve the desirable level of prices by the end of 1999.

He called for the support of working people in restructuring the public sector.

"We are not opening a front against them," he said, noting that the government would proceed "with as broad a consensus as possible," but when this was not forthcoming, the law concerning the streamlining of public utilities (DEKOs) would be "applied un waveringly".

"What ultimately counts is the public interest and society as a whole, in other words public utilities must become more effective and competitive, offering better services," he said.

Referring to workers' incomes, he said this had risen in recent years, and accused unions of downplaying this fact. He admitted that unemployment was the most difficult nut to crack, and that it would not disappear at a stroke after EMU accession, but i ncomes would continue improving. No general elections, premier says: Mr. Simitis again ruled out early general elections, saying the government wanted to complete its programme by 2000 when elections are due.

"Rumours (of early elections) overlook this key point. The government is not here to simply wield power, but to carry out a specific mandate," he said.

The prime minister rejected criticism expressed this week by main opposition New Democracy (ND) leader Costas Karamanlis, namely, that Greece's delayed entry into EMU had relegated the country to a second-class status.

"Greece will formally take part in the euro from when it first starts to circulateIGreece clearly has a stronger voice today than in the past," he said.

Mr. Simitis charged that former ND governments had failed to implement their own convergence programme, giving the ruling PASOK party a difficult start when it returned to power in 1993 under the late Andreas Papandreou.

It was then that Greece lost its chance to take part in the first phase of EMU, Mr. Simitis said.

In addition, when the country first joined the EU, the criteria were mainly political and not economic, he said.

"Participation in EMU is tantamount to a new entry under more difficult conditions," he said.

"The basis for our present success lies in programmes implemented by Andreas Papandreou's governments."

The prime minister also rejected criticism that his choices were influenced by internal party disputes or pro-PASOK trade unionists.

"The government is hostage to no one, it is unshakeable and does not negotiate (its policies)," he said.

Mr. Simitis stressed that he backed the use of dialogue in order to achieve as much consensus as possible.

"There is, however, a culture rooted in Greek history that is mistrustful of events and interprets the need for dialogue as a retreat," he said, adding that at the same time, ministers expressed their views at Cabinet meetings and their differences shou ld not be blown up.

A fall in the ruling party's popularity in recent opinion polls was due to a combination of circumstances, but the polls all showed that the public wanted Greece to take part in Europe, Mr. Simitis said.

"We are all here to fulfil this mandate (Europe) and not a day must be lost in our national endeavour."

Mr. Simitis, who on Wednesday briefed party political leaders on the EU summit, said that ND had proposed a free market policy; the Communist Party of Greece had maintained its usual positions; the Coalition of the Left wanted a stronger social angle, w hile the Democratic Social Movement backed a European orientation, but not in its current form.

"The objections were along very general lines and no one submitted specific proposals," the prime minister said. Opposition reaction: Opposition parties reacted strongly to Mr. Simitis' statements.

New Democracy party spokesman Aris Spiliotopoulos accused the prime minister of trying to deceive the Greek people, pointing out that PASOK's 1994 convergence programme envisaged EMU accession in 1999.

The Communist Party of Greece (KKE) described the prime minister's press conference as provocative, saying he tried to dress-up the government's anti-popular policies the moment when riot police were battling protesters on the street.

Coalition of the Left leader Nikos Constantopoulos said the prime minister's press conference aimed to conceal the government's responsibilities for failing to take the country into the first phase of EMU, and dressing- up the most painful policies it i s preparing for the next 18 months. He accused Mr. Simitis of being more interested in the Greece of numbers, casinos, the stock market and intertwined interests, and less in the Greece of citizens, social needs, unemployment and tax injustice.

Political Spring party leader Antonis Samaras said the prime minister had spoken as a mouthpiece of the European Commission, and forecast "new storms in our national issues and social upheavals that may annul our EMU accession".

Athens News Agency

[02] Gov't reiterates no PKK offices in Athens

Athens, 8/5/1998 (ANA)

However, he added "there are in Greece, as in nearly all the other EU countries as well as in the United States, offices of Kurdish political organisations".

Mr. Bikas was replying to a statement Wednesday by US State Department spokesman Lee McClenny, namely, that the United States was "seeking Greek government vi-ews" on whether or not a PKK office was being established in Greece.

Mr. Bikas said Washington was "well aware of Greece's position regarding Kurdish organisations, both from recent official announcements as well as from a briefing given for the US embassy in Athens at the latter's request".

He said it was "self-evident that the development of activities containing elements of violence or terrorism are not allowed in Greece".

Mr. Bikas also pointed out that Greece "as a democratic European country, considers that human rights anywhere in the world are not the domestic issue of any country, and it is not possible that positions should be adopted selectively."

"The violation of human and minority rights in Turkey is, therefore, a major issue, and only its solution would guarantee stability in that country and in the region, and the development and progress of the Turkish people," Mr. Bikas added.

Athens News Agency

[03] US satisfied with Athens' response

WASHINGTON, 8/5/1998 (ANA - T. Ellis)

He said "the Greek foreign ministry briefed our embassy in Athens that there never was, there is not, nor will there ever exist a PKK office in GreeceIwe welcome this commitment, which is in line with Greece's international commitments for countering te rrorism." Kaklamanis: "Washington, if it really wants to play the role of third party, is not entitled to cover up for the well-known expediencies of the Turkish side," Parliament President Apostolos Kaklamanis said later.

He made the statement when asked by reporters to comment on criticism by Mr. McClenny that a handful of Greek legislators were allegedly supporting the PKK.

Saying Mr. McClenny's claims had no basis in reality, Mr. Kaklamanis added that "as in the case of other issues" they were probably based on (Washington's) "unreserved acceptance of Turkey's false claims and positions".

Mr. Kaklamanis expressed regret that the US spokesman would so readily adopt "such groundless accusationsIwhen he is only too familiar with the present regime in Turkey". Greek deputies, he said, just like their US counterparts are entitled to mai ntain any views whatsoever. If they break the law, he added, then the consequences both in the United States and Greece are the same, namely, the laws of the country will be enforced.

Athens News Agency

[04] Premier says Ankara not in a position to blackmail Cyprus' EU accession course

Athens, 8/5/1998 (ANA)

"Turkey must realise that it cannot blackmail the accession of CyprusIa procedure independent from a solution of the political problem of Cyprus", Mr. Simitis told a press conference.

"Decisions concerning accession procedures were taken in Luxembourg in December 1997", he said, adding that at the time many asserted that talks would not start last March because of Turkish objections.

"Still, Cyprus accession talks began and they will continue," he stressed.

On his part, Turkish Cypriot leader Rauf Denktash refused to take part in UN-led intercommunal talks aimed at a Cyprus settlement unless his puppet regime was first recognised as an independent state.

Both Mr. Denktash and Ankara have repeatedly claimed that by its decision to start accession negotiations with Cyprus, the EU ruined any prospects for a Cyprus settlement.

Athens News Agency

[05] Spanish royal couple in Athens at the end of the month

Athens, 8/5/1998 (ANA)

The Spanish royal couple will visit Greece at the invitation of President Kostis Stephanopoulos. A similar announcement was made by the Spanish foreign ministry.

According to a dispatch from Madrid by AFP and DPA, both Spanish and Greek authorities are attaching importance to the visit, which will include Madrid's Foreign Minister Abel Matutes, Spanish diplomatic sources said.

"Since it is the first official visit, it is being prepared with the greatest care by both sides," the sources said. The Spanish royal couple will stay in Athens for two days and will meet President Stephanopoulos. The Spanish monarch will make an addre ss in Parliament and the royal couple will meet with Greek officials, before visiting Olympia and Thessaloniki.

The Spanish royal couple will also inaugurate an exhibition on Greek art in Spain, while on the sidelines of the official visit, and in a strictly private framework, they will visit the Tatoi retreat.

Athens News Agency

[06] Karamanlis calls exclusion from EMU a dramatic loss for Greece

Athens, 8/5/1998 (ANA)

Addressing his party's Parliamentary group yesterday, Mr. Karamanlis said that Greece sustained a national degradation and depreciation 18 years after its equal accession to the European Union. He said that the country's accession to EMU is the most imp ortant national target, adding that there are considerable consequences from staying outside the EMU which are in danger of becoming incalculable at economic, political and national level.

Mr. Karamanlis said that the drachma is in danger of sustaining new pressures and a new depreciation is possible and at the same time there is the danger of interest rates increasing. The advantages of the euro, he added, are a decrease in the cost of m oney, the multiplication of transactions and combatting unemployment.

He said that the country was led to this position due to the criminal options of the '80s and the lack of boldness and effectiveness by the Simitis government.

Defending the Mitsotakis government (1990-1993), he accused the government of hypocrisy and pusilanimity because, as he said, it is attempting to place the responsibility for the failure on the Mitsotakis government.

Mr. Karamanlis said that there were mistakes and weaknesses in the country's ruling by Mr. Mitsotakis, but added that the ND government delivered half the inflation and deficit it had found. He said that the government has been dragged to the options of the Mitsotakis government but is unable to implement this policy.

Mr. Karamanlis reiterated his positions on widespread denationalisations, stressing that they are not a fetish and adding that the huge public sector is harmful for the economy's indicators, taxpayers, the young unemployed and the low pension earners.

He further accused the government of not wanting to have transparency rules safeguarded in procurements on the occasion of the government rejecting a law proposed by ND on the creation of an independent administrative body to control procurements.

Mr. Karamanlis said that the state is not safeguarding the security of citizens. There is an upsurge in crime, relating the issue with the extent of the public sector and PASOK's party nomenclature.

He reiterated his proposals for cutbacks in public expenditures, a wide programme of denationalisations, a change in tax policy and a bold development policy because otherwise, as he said, the country is in danger of finding itself on the sidelines and being faced with the spectre of sliding into isolation and marginalisation.

Outlining his opposition tactics, he said he will continue to make strict criticism with creative proposals, adding that the duty of ND's cadres is increasing because they must produce more in order to provide for the country.

Mr. Karamanlis appeared certain that his party will win the next general elections, stressing that it must receive a positive vote. He said that "we must not achieve victory solely through the increasing displeasure of groups of citizens who will throw an incompetent government into a trash can, because the parameter of faith which is the fuel which will power Greece into the 21st century is of great importance.

Athens News Agency

[07] Tsohatzopoulos pessimistic about Aegean CBMs

Athens, 8/5/1998 (ANA)

NATO Secretary General Javier Solana in Rhodes.

Mr. Solana is scheduled to arrive in Greece today ahead of a two-day Western European Union (WEU) foreign and defence ministers meeting on Rhodes, which begins on Monday.

Greece is current holder of the rotating six-month WEU presidency.

Briefing the parliamentary committee for foreign affairs and defence, Mr. Tsohatzopoulos said he would not be discussing the issue of CBMs on the sidelines of the WEU meeting.

According to informed sources, Mr. Tsohatzopoulos told the committee that the coordination between the Greek ministries of foreign affairs and defence was at a very good level.

Replying to concern expressed by committee members about the Kosovo crisis leading to a fresh wave of refugees entering Greece, the sources said, Mr. Tsohatzopoulos replied that the government was taking all the necessary initiatives to resolve the problem.

Athens News Agency

[08] Rhodes braces for tight security WEU summit

Athens, 8/5/1998 (ANA)

Four hundred and fifty police officers will be flown in from Athens for the summit, while frogmen will patrol the waters close to where the complex is located.

More than 600 officials are expected for the summit, as well as a number of Greek and foreign journalists. First to arrive for the summit will be NATO Secretary-General Javier Solana, who arrives this morning.

Traffic on the island will come to a standstill while ministers are transported from the island's airport to the hotel and to other locations, such as the island's Old Town, which will be the venue of an official dinner hosted by Greek Foreign Minister Theodoros Pangalos on Monday.

The Turkish delegation will arrive on the island by sea.

Local residents will also be restricted from using the island's roads when the ministers are taken to visit the ancient acropolis of Lindos.

Athens News Agency

[09] Nano in Thessaloniki calls for peaceful solution for Kosovo

Athens, 8/5/1998 (ANA)

He arrived in the city yesterday afternoon, invited by the Federation of Northern Greek Industries (SBBE), to address Greek businesspeople this evening on the issue of investment opportunities in his country.

Mr. Nano noted his belief that "the two sides will proceed to a courageous dialogue, which will offer long-term solutions."

Albania, he said, has told "both sides, Belgrade, which continues to strike at unarmed civilians, and to representatives of the Albanian community who do not react in the same manner, that Albania is a member of the international community which exercis es pressures and offers solutions for the peaceful settlement of historic differences."

In answer to a relevant question, Mr. Nano said that he was ready to meet with Yugoslav President Slobodan Milosevic if the latter "takes off his military uniform."

In Thessaloniki, his address is expected to attract a large audience due to signs of economic recovery in Albania and international tenders being called for public works, in which Greek construction and engineering contractors have expressed interest.

Greek investments in Albania are currently estimated at 2.5 billion drachmas, ranking second to Italian investments.

Mr. Nano, who leaves Thessaloniki on Sunday, will also visit his two children studying in the city as well as hold talks with Macedonia-Thrace Minister Philippos Petsalnikos.

Athens News Agency

[10] Better law enforcement cooperation between Greece, Albania discussed

Athens, 8/5/1998 (ANA)

"Greece cannot endure any more economic refugees," Mr. Romeos said after meeting his new Albanian counterpart Perikli Teta in Athens.

The meeting focused on relations between the two governments and on developing "to the maximum" practical cooperation between the two countries' police forces.

It was decided to exchange information and appoint liaison officers in order to improve coordination between the two police forces.

Mr. Romeos is also expected to discuss cooperation between Greece and Albania in this area when he meets Albanian Prime Minister Fatos Nano in Thessaloniki on Saturday.

Athens News Agency

[11] Greek MPs calls for end to Iraqi sanctions

Athens, 8/5/1998 (ANA)

Ruling socialist MPs Paraskevas Paraskevopoulos and George Katsimbardis and Coalition of the Left and Progress deputy Spyros Danellis said the Iraqi people were suffering under the embargo and that they would begin a fund- raising campaign to buy medical supplies.

They hope to send the supplies by air after receiving approval from the United Nations representation in Athens.

The United Nations sanctions, imposed on Iraq after its 1990 invasion of Kuwait, were extended last Monday after a UN official told the Security Council there had been little progress on arms inspections.

Athens News Agency

[12] Finnish, Greek ties in good shape, Kaklamanis says

Athens, 8/5/1998 (ANA)

Ms Uosukainen began a three-day official visit to Greece yesterday, at the head of a parliament delegation.

Both sides underlined that while bilateral relations were excellent, there was room for cooperation in all sectors.

Mr. Kaklamanis called the Finnish position on Greek national issues "positive", saying the Finnish participation in the UN peacekeeping force in Cyprus underlined Helsinki's support for a united, independent and sovereign Cyprus and for human rights.

Mr. Kaklamanis and Ms Uosukainen also discussed their respective country's convergence programmes with the European Union, placing emphasis on employment for women and the young and on equality opportunities, as well as what role the national parliament s could play in upgrading the role of the European citizen.

Ms Uosukainen is also scheduled to meet with President Kostis Stephanopoulos, Kaklamanis and Foreign Minister Theodoros Pangalos, as well as opposition party leaders and other parliament officials.

Athens News Agency

[13] Int'l symposium on Rigas in Belgrade

BELGRADE, 8/5/1998 (ANA - M. Mouratidis)

The symposium is organised by Belgrade University's Greek studies department, Democritos University of Thrace's history and ethnology department, the Balkan Institute of Serbian Science and Art and the "Rigas Velestinlis" Society of Athens.

Visiting Culture Minister Evangelos Venizelos said that Rigas' vision of a united Balkan government of nations is becoming apparent now more than ever.

He added that we have much to learn from the written works of Rigas, also know as Rigas Feraios, and especially from his Charter of human rights.

Athens News Agency

[14] ND MPs support links between church, state

Athens, 8/5/1998 (ANA)

"We declare our belief in the need to maintain excellent relations between the state and Church of Greece, as these have been shaped over the centuries and by the country's Constitution," the MPs said.

Last week, 52 ruling socialist PASOK deputies and one ND deputy supported a change in the wording from swearing in the name of the "holy, consubstantial and indivisible Trinity" to swearing in the name of "the Greek people and the nation", as part of re visions currently under way to the Greek Constitution.

Among the signatories to the letter are Foreign Minister Theodoros Pangalos, former foreign minister Karolos Papoulias, Environment, Town Planning and Public Works Minister Costas Laliotis and Finance Undersecretary George Drys.

More recently, there have been reports of possible changes to the constitution that would separate the roles of Church and State, although Justice Minister Evangelos Yiannopoulos said this week that formal proposals by PASOK and New Democracy for consti tutional revision did not include the segregation of Church and state or the issue of the oath.

Athens News Agency

[15] Violence as teachers, police meet on city streets

Athens, 8/5/1998 (ANA)

Protesters clashed with the police near the parliament building after being blocked from marching to the nearby Zappion Hall where Simitis was giving a press conference on the government's positions regarding economic and monetary union (EMU).

At least one teacher was reported injured as protesters hurled stones and pieces of wood at the police, who replied with baton charges and tear gas.

The marchers eventually dispersed and riot police remained on stand-by in the area.

The approximately 2,000 protesters, many of whom had reportedly arrived by coach from the provinces, were demonstrating against the government's changes to the way in which teachers are appointed to state schools.

The trouble began earlier outside the Council of State, which was hearing a petition submitted by teachers' unions questioning the constitutionality of a competition being organised by the government this month, on the basis of which a large number of t eachers will be hired.

In effect, the competition abolishes the "waiting list" method of appointments applied up to now.

Athens News Agency

[16] Gunfire between police, drug smugglers near border

Athens, 8/5/1998 (ANA)

No one was reportedly hurt in the shootout. Police had been staking out the hideout for four days after detecting it and were waiting for the suspects to appear. The two men opened fire on spotting police, who returned the fire. Taking advantage of nigh tfall, the two managed to flee towards, leaving the quantity of drugs behind, according to reports.

In another development, Turkish authorities delivered Constantinos Bilis, 39, to Greek authorities at the Kastanies, Evros border checkpoint yesterday morning. The man had been abducted by Turkish drug traffickers on April 29 inside his home in the Ores tiada region. He was serving a prison term in Kassandra prison and had taken leave to visit his family. His wife reported his disappearance but no trace was found of him despite efforts made by Orestiada police. The case took another turn when Turkish pol ice raided a derelict house in the Edirne region on Tuesday, acting on a tipoff that drugs had been stored there, and found Bilis tied up and in a pitiable state.

Athens News Agency

[17] Piraeus mayor to appeal incarceration, KEDKE criticism of decision

Athens, 8/5/1998 (ANA)

In a related development, Central Union of Greek Municipalities and Communities ( KEDKE) President and Athens Mayor Dimitris Avramopoulos visited Mr. Logothetis at Korydallos prison, while later he stated that the decision to incarcerate the Piraeus may or was hasty. KEDKE's board later called for the mayor's immediate release, after convening in an emergency session. A KEDKE announcement questioned the reasons behind the incarceration, stating no reasons for such a decision were evident.

Athens News Agency

[18] 'Key-chain' gun lands man in jail

Athens, 8/5/1998 (ANA)

He was arrested while attempting to smuggle the pistol on board, police announced yesterday. Police said such pistols are not detectable by X-ray machines or other security equipment, rather it was police officers who noticed the weapon and arrested the man. Ioannis Trabakopoulos was later convicted to 21-month-prison term and fined 800,000 drachmas.

According to the public order ministry, 12 such weapons have been confiscated in Greece so far.

Athens News Agency

[19] Athens daily points to changes for Olympic construction

Athens, 8/5/1998 (ANA)

According to reports, one of them will be the creation of a man-made islet off the seaside Agios Kosmas athletic facilities.

A report in the Athens daily "Ta Nea" yesterday claimed that a draft study being prepared by the environment, town planning and public works ministry foresees the creation of the small islet the size of about three acres.

Boating facilities will be created on the islet as well as facilities for smaller vessels.

The other three changes concern construction of a marina at the Agios Kosmas site, extension of the Olympic Village at the Thracomakedones site, and the changing of installations at the Faliro horse track to reduce environmental repercussions. BHCC symposium on Olympic-related projects: The British-Hellenic Chamber of Commerce (BHCC) yesterday announced the "Private Financing for the 2004 Olympics" symposium, scheduled for June 17 in Athens.

The conference, organised by the BHCC, is under the auspices of the British embassy. It will deal with practical, legal and commercial issues that potential investers and contractors may face if they decide to participate in related projects.

The main speakers will be the Environment, Town Planning and Public Works Undersecretary Christos Varelis and the managing director of Athens 2004 S.A., Costas Bakouris.

Athens News Agency

[20] Thessaloniki to host SE Europe MPs meeting

Athens, 8/5/1998 (ANA)

The meeting is being organised by the Council of Europe's International Institute for Democracy and will run from May 14-16.

Macedonia-Thrace Minister Philippos Petsalnikos told a press conference yesterday that younger MPs could play an important role in promoting dialogue between countries in the region.

Former New Democracy MP Aristotelis Pavlidis, who is a member of the institute, said that the organisation was convinced that the conditions were right for this sort of regional dialogue.

He said the meeting was a spin-off of the meeting of SE Europe parliament presidents held in Athens last October.

"Parliamentary cooperation prepares the ground for governmernt cooperation, " Mr. Pavlidis said.

Thirty-five MPs from Albania, Bulgaria, Greece, Croatia, Federal Yugoslavia, the Former Yugoslav Republic of Macedonia, Romania, Slovenia and Turkey are slated to attend.

Athens News Agency

[21] New EYDAP president

Athens, 8/5/1998 (ANA)

In a statement, Mr. Verelis said that EYDAP is a particularly important utility for society at large and that the government aims at having its services drastically improved. He added that it will remain under state control while the process of its entr y onto the bourse will go ahead by providing a minority package of shares for the public. - The Air Traffic Controllers' union yesterday announced three four-hour work-stoppages from 12 p.m. to 4 p.m. on May 13, 14 and 15, demanding additional pay for overtime work with the recently installed Thomson radar systems.

Athens News Agency

[22] Economic News

The National Statistics Service (NSS) said yesterday that price increases resulting from the devaluation had now been absorbed by the market and inflation was likely to resume its downward course in May.

NSS Secretary-General Nikos Karavitis told journalists it would be reasonable to expect that there would be no further major repercussions on inflation from the devaluation.

April's rise was chiefly the result of price hikes in cars, lamb and goat meat, hotel rates and an Easter holiday bonus paid to workers that increased demand in the market, Mr. Karavitis said. Workers to stage nationwide strike in May: The General Confederation of Greek Labour (GSEE) announced yesterday it will hold a 24-hour nationwide strike in late May to protest against government privatisation plans and labour reforms.

No date was given despite pressure from first-tier trade union organisations.

GSEE is soon expected to give its consent to a collective labour agreement allowing wage increases of 4.5 per cent for 1998, union sources said.

GSEE representatives are expected to meet with employers to discuss the agreement next week. Greece to use private firms in PO restructuring, no lay-offs: The government plans to allow alliances with private firms as part of a plan to restructure state Hellenic Post Offices (ELTA), but will not order redundancies, ministers told reporters yesterday.

The business plan includes transfers of employees in order to meet operational needs and arrangements with private firms for international services including Euro-packages and speedy delivery.

National Economy and Finance Minister Yiannos Papantoniou and Transport Minister Tassos Mantelis were speaking after a meeting to endorse the plan, which is part of the government's scheme to streamline public utilities.

Under the business plan, ELTA is expected to start showing a profit in 2000.

The ministers also said that any increases in postal rates would be minor, as in other public utilities, in order to avoid fuelling inflation.

Mr. Mantelis said the next business plan to be examined and approved by the government would be that of the Athens Urban Transport Organisation (OASA).

National carrier Olympic Airways, ELTA, OASA and Hellenic Railways Organisation (OSE) are four loss-making public enterprises that have been slated for restructuring. Greek stocks take battering in profit-taking: Greek equities yesterday lost substantial ground on the Athens Stock Exchange on the second day of a downward correction.

Traders said the market had discounted a government decision for the sale of state-owned Ionian Bank, and that investors raked in their profits early.

The general index ended 2.82 percent lower at 2,509.78 points, reversing an earlier upward trend.

Sector indices were mixed. Banks plunged 3.35 percent, Insurance fell 1.87 percent, Investment was 3.47 percent off, Leasing dropped 1.56 percent, Industrials ended 2.79 percent down, Construction rose 0.50 percent, Miscellaneous fell 0.80 percent and H olding was 3.51 percent down.

The parallel market index for small cap companies rose 2.16 percent.

Trading was active with turnover at 78.5 billion drachmas.

Broadly, decliners led advancers by 144 to 99 with another 13 issues unchanged.

Papahellinas, Alte, Nafpaktos Mills, Rokas, Attica Aluminium, Doudas, General Warehouses and Sanyo scored the biggest percentage gains hitting the day's 8.0 percent limit up.

Minoan Lines plunged 11.65 percent followed by Kyriakoulis, Euromedica, Dane and Vernikos with an 8.0 percent fall.

National Bank of Greece ended at 49,500 drachmas, Ergobank at 27,100, Alpha Credit Bank at 31,500, Delta Dairy at 5,145, Titan Cement at 23,520, Intracom at 18,200 and Hellenic Telecommunications Organisation at 8, 545. Greek bank workers to hold nationwide strike: Monday The Greek Federation of Bank Employees Unions yesterday called a 24-hour strike at state-owned Ionian Bank for today, and a 24-hour nationwide strike at all banks on Monday.

The strikes are to protest against the government's plan to sell Ionian, a subsidiary of state Commercial Bank.

Unions have rejected a government plan to sell a majority stake in Ionian Bank through the Athens Stock Exchange.

Yiannis Markakis, the bank union's president, told an Ionian Bank strikers' rally that the government had chosen the path of confrontation with the bank's 4,400 employees. EU commissioner urges Greece to modernise energy infrastructure: The abolition of state monopolies in Europe's energy sector will create new opportunities for investments and services but Greece has to maximise the benefits by modernising its infrastructure and expanding in regional markets, European Union Energy Commissioner Christos Papoutsis said yesterday.

Mr. Papoutsis's statement was contained in a message he sent to an energy congress held in Athens by a Greek magazine entitled Energy, Delos Communications and London's International Energy Research Centre.

Development ministry secretary general Alekos Papathanassopoulos told the congress that the government aimed to extend private sector participation in energy, a move that would benefit consumers.

He said that a bill on electricity to be tabled in parliament by the end of the year would be based on EU directives and lay special emphasis on renewable energy.

Costis Stambolis, the chairman of the congress' organising committee, said the country's energy balance would depend on factors including the use of natural gas and development of renewable energy.

Athens News Agency

[23] EU support for Kalavryta-Diakofto rail line reiterated

STRASBOURG, 8/5/1998 (ANA)

The decision on whether or not to maintain or abolish a railway line is up to the national authorities. However, the financing of the aforesaid project shows the desire of these authorities to safeguard the preservation of the line.

This was stressed in a reply by EU Commissioner Monika Wulf-Mathies to a question by Political Spring party Eurodeputy Katerina Daskalaki regarding the rail line. The route is threatened with closure since the relevant authorities, as Ms Daskalaki has s tressed, consider the line loss- making.

Athens News Agency

[24] Cohesion Fund director comments on funding of major projects

Athens, 8/5/1998 (ANA)

Mr. Verstrynge said that the EU's funding contributions will reach up to 85 per cent, while in some cases 100 per cent. The only precondition, he added, will be timely submission of studies and programmes to the EU agencies.

The announcement came in Thessaloniki during the first conference on water and the environment, organised by the Balkan Cooperation Network and the Sewer Authority of Thessaloniki.

Mr. Verstrynge also mentioned delays in the submission of necessary studies by Greece, which he noted has caused low absorption rates for EU funding.

Athens News Agency

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