Athens News Agency: Daily News Bulletin in English, 00-01-17

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

CONTENTS

[01] EU gives drachma new central parity vs euro

[02] Economy Minister welcomes parity change

[03] Opposition blasts drachma revaluation

[04] France welcomes drachma's revaluation

[05] PM says national interest to set timing of polls

[06] Visiting Greek Parliament President meets Clerides

[07] Cem steadfast on Ankara's desire for unconditional talks with Athens

[08] Cypriot FM says he'll travel to Ankara for talks, if invited

[09] Greece to have integrated anti-aircraft system from 2001

[10] Plan to overhaul armed forces to parl't soon

[11] Britain's defense minister to visit Greece on Monday

[12] ND candidate backs PASOK

[13] Karamanlis, Avramopoulos expected to meet on Tuesday

[14] Unique El Greco exhibition ends on Monday after record attendance

[15] Eleven charged in street clashes

[16] Body of illegal Iraqi immigrant found

[17] Athens Sunday papers at a glance

[01] EU gives drachma new central parity vs euro

BRUSSELS, 17/01/2000 (ANA)

Greece is expected to enter the 11-member euro zone on January 1, 2001 at the drachma's newly-set ERM parity.

The members of the monetary committee are representatives of the 15-nation bloc's finance ministries, central banks, the European Central Bank, and the EU's executive Commission.

Representing Greece at the meeting were Deputy Bank of Greece Governor Nikos Garganas and Yiannis Stournaras, the national economy ministry's chief economic adviser.

A communiqu released by the committee after its four-hour meeting said the drachma's trading band in the ERM was 15% above or below central parity.

The committee said the drachma's shift upwards from the previous 353 to the euro would aid Greece's drive for growth and price stability,

It also underlined the importance of maintaining a stable fiscal policy and carrying out more structural changes to the economy in order to achieve a lasting alignment with other EU countries.

Finally, the communiqu said that the revaluation, which was sought by Greece, did not anticipate a decision by the European Central Bank and EU Commission due in June on whether or not Greece is ready to join the euro zone.

Prime Minister Costas Simitis said that the EU's decision had proved the economy was stable and healthy.

"The Greek public has shown through its effort that as a country we can move at the same pace as other European countries," Simitis said in a scheduled public address in the western town of Eghio in the Peloponnese.

The prime minister added that beyond the monetary value of the drachma that had now been officially acknowledged, the value of public effort also was recognized.

[02] Economy Minister welcomes parity change

Athens, 17/01/2000 (ANA)

The revaluation would also aid a decline in interest rates and have a favorable long-term impact on the Athens Stock Exchange. He called the drachma's rise a historic moment for Greece, as the drachma had never been revalued. The parity shift reflected the economy's dynamism, progress and competitiveness, Papantoniou said.

The main opposition New Democracy party criticized the revaluation, saying it would bring negative repercussions that the government had failed to take into account.

In Brussels, Garganas and Stournaras told reporters they were satisfied with the decision to revalue. The move would assist the government's policy of lowering inflation as well as pave the way for more rate cuts. The drachma would gradually move towards its new parity in the coming year from the current trading rate of around 330 to the euro, the two officials said. The trading rate would still stand at around 330 drachmas on Monday, they added. EU Commissioner for Monetary Affairs Pedro Solbes also welcomed the drachma's revaluation. He said the move would help Greece to align its economy with other EU member states, adding that he fully supported the government's commitment to structural change as well as its carefully crafted fiscal policy and its approach to incomes policy.

[03] Opposition blasts drachma revaluation

Athens, 17/01/2000 (ANA)

ND media spokesman Aris Spiliotopoulos said in a statement that the government's request to the European Union for a revaluation was geared to improving its position before national elections.

The move showed the government's hypocrisy and the predilection of Prime Minister Costas Simitis for tactical maneuvers, the statement said.

The Communist Party of Greece (KKE) said that the parity change constituted a new anti-popular step, a concrete form of managing the parity in the service of monopolistic interests towards EMUThe working class and the people have nothing positive to gain from this development.

Also criticizing the revaluation was the Coalition of the Left and Progress, which said the move reflected the government's worries about a resurgence of inflation, especially after Greece' s entry into the euro zone.

"Once again, the government has resorted to the option of a hard drachma as a means of tackling inflation. This comes at a time when inflation is rekindling due to unbridled profiteering and minority interests in key sectors of the Greek economy," the Coalition said in a statement.

Finally, the Democratic Social Movement charged the government with using the drachma to bolster its position before national elections.

"The PASOK government, as a government of accountants and bankers, is trying in vain to divert public opinion by settling the drachma's parity to the euro," the party said in a statement. "The government's haste to fix the parity reveals its real intentions, which are early elections in order to prevent the public from seeing the tough economic terms that the EU will impose for Greece to join the euro zone," the statement said. It added that Greece had so far failed to meet the Maastricht criteria on inflation and the public debt, which meant that euro zone entry would be secured on political - not economic - terms.

The revaluation would not affect the country's economy in real terms, or the real income of the majority of the Greek public, the statement said.

[04] France welcomes drachma's revaluation

Athens, 17/01/2000 (ANA)

[05] PM says national interest to set timing of polls

Athens, 17/01/2000 (ANA)

Outlining the government's successes, Simitis told a rally that Greece now ranked among the world's 20 most developed countries.

The prime minister also underlined the importance of strengthening Greece's role as an international player.

Aiding the policy were the country's involvement in economic reconstruction of the Balkans, a domestic policy combining growth and social justice, and an active foreign policy. Eghio was Simitis' last stop on a tour of the Achaia prefecture.

[06] Visiting Greek Parliament President meets Clerides

NICOSIA, 17/01/2000 (ANA)

Speaking after the meeting Kaklamanis said he conveyed to Clerides the thoughts and feelings of the Greek Parliament and the people of Greece both on the completion of the EU accession process and a solution to the Cyprus problem.

Kaklamanis stressed that it is clear that the solution cannot be an obstacle to the completion of (Cyprus EU) accession course.The President of the Greek Parliament said Clerides informed him about preparations in view of the second round of the UN-led proximity talks on Cyprus in Geneva on January 31.

Kaklamanis also held separate meetings with House political party leaders Saturday. He rounded up his private visit with a meeting at the National Guard headquarters before returning to Greece Saturday afternoon.

Friday night Kaklamanis was declared honorary citizen during a gathering organized by the Municipality of the Turkish occupied town of Morphou.

[07] Cem steadfast on Ankara's desire for unconditional talks with Athens

Athens, 17/01/2000 (ANA)

At this stage, Turkey and Greece must be ready to face all bilateral issues with sincerity and without prejudices in order to reach a just and mutually acceptable solution for the Aegean, the Turkish FM said in an interview published by the Athens To Vima newspaper on Sunday. Cem also stressed that results of the recent EU summit in Helsinki provided a new impetus for this goal (solution to Aegean differences), although he gave another interpretation to the point in the Helsinki agreement that specifically refers to the International Court of Justice at The Hague recourse by end of 2004 if differences havent been solved.

According to the Turkish FM, the reference doesnt constitute a deadline but simply a date by which the European Council will re-examine the situation in relation to outstanding differences. In a more amicable tone, he cited the need to proceed with dialogue on issues more complex than those now termed as low-level.

Conversely, he appeared adamant in terms of the Cyprus problem, maintaining that two sovereign and independent states exist on Cyprus while asking for recognition of the pseudo-state illegally declared in the island republics areas occupied by Turkish forces since 1974. He also claimed that the primary obstacle to an improvement in relations between Greek Cypriots and Turkish Cypriots is the embargo placed by the Cyprus government against the Turkish-occupied areas. Greek leadership over more than two decades -- since Ankara first aired its claims and warning regarding Aegean airspace, territorial waters, delineation of the continental shelf, and even territory in January 1996 has steadfastly refused to discuss issues of sovereignty and territorial rights in the Aegean, maintaining that international law and treaties, as well as several bilateral treaties since 1923 leave little margin for contention, and therefore, make negotiations of Turkeys unilateral claims unacceptable. Athens maintains that only the continental shelf issue is applicable for recourse to The Hague.

[08] Cypriot FM says he'll travel to Ankara for talks, if invited

Athens, 17/01/2000 (ANA)

The Cypriot minister's statement, undoubtedly an 'opening' towards Turkey, was made in an interview published on Sunday by Athens' "Kathimerini" newspaper -- two weeks before the second round of UN-sponsored proximity talks between the Greek Cypriot and Turkish Cypriot sides begins in Geneva. Kasoulides was quoted as saying that Nicosia must take into consideration Ankara's concerns, underlining however, that Turkey must reciprocate in kind by alleviating Cyprus' concerns. "Only through personal contacts" can this be achieved, he said.

[09] Greece to have integrated anti-aircraft system from 2001

Athens, 17/01/2000 (ANA)

The S-300 missile system installed in the island of Crete would be fully integrated into the country's defense system in a few months. The missiles would cover 40% of the distance between Crete and Cyprus, Tsohatzopoulos said.

In addition, the whole of national airspace would be covered by Patriot missiles from 2001, he told a news conference in the Cretan town of Ierapetra.

On a tour of the southern island, the minister is due back in Athens on Sunday evening.

[10] Plan to overhaul armed forces to parl't soon

Athens, 17/01/2000 (ANA)

Speaking during a tour of Crete, Tsohatzopoulos noted that the new standing army would have 15,000 personnel and that a phased cut in the length of compulsory military service would begin in two years. Also under the ministry's reform proposal, the structure of the armed forces would undergo change. "The new army will rely on more flexible and effective units," Tsohatzopoulos said.

The minister was addressing a news conference in the town of Ierapetra.

[11] Britain's defense minister to visit Greece on Monday

Athens, 17/01/2000 (ANA)

Hoon, accompanied by his Greek counterpart Akis Tsohatzopoulos, will visit the Hellenic Vehicles Industry (ELBO) on Monday afternoon.

On Tuesday, the two officials will have talks in Athens, at the defense ministry. Hoon is also expected to have talks with Greek Foreign Minister George Papandreou.

[12] ND candidate backs PASOK

Athens, 17/01/2000 (ANA)

Kostas Argyropoulos of the Achaia prefecture told the prime minister in Patras that he would lay his services at PASOK's disposal as the party's new approach, and Simitis personally, had emerged as a growing force for modernization. The political map of the country had changed, Argyropoulos said in a written statement released after a meeting with Simitis, who is touring Achaia.

[13] Karamanlis, Avramopoulos expected to meet on Tuesday

Athens, 17/01/2000 (ANA)

Avramopoulos, which was re-elected Athens mayor with ND's backing in October 1998, has been the subject of speculation over the past year on his next political move, including the possible formation of a new party.

In an interview with "Kathimerini" Sunday paper, Karamanlis said Avramopoulos was an important party cadre who will have "a predominant part in the party's election campaign and the government" if ND wins this year's general elections. On his part, Avramopoulos told the "Eleftheros Typos" Sunday paper that he has had regular contacts with Karamanlis. "A new meeting between us will surely be pleasant and useful," he said.

[14] Unique El Greco exhibition ends on Monday after record attendance

Athens, 17/01/2000 (ANA)

Lines were especially long over the past few days leading up to the exhibition's conclusion, with some 500,000 people passing the gallery's gates to view the artworks, brought together from museums, private collections and monasteries around the world.

[15] Eleven charged in street clashes

Athens, 17/01/2000 (ANA)

Five of the youths were charged with felonies including violation of the law on explosives and arson during the violence on Friday in which police used tear gas to disperse masked attackers hurling rocks and molotov bombs. Two vehicles were torched.

Members of a group of around 20 youths were arrested after they briefly occupied the grounds of the Athens Polytechnic building to evade the tear gas. Among misdemeanor charges filed against the remaining six were disturbing the peace and resisting authority.

[16] Body of illegal Iraqi immigrant found

Athens, 17/01/2000 (ANA)

[17] Athens Sunday papers at a glance

ADESMEFTOS TYPOS: "500,000 casualties of banks give parliament ultimatum: Vote for the loan penalty rate bill and we won't vote for you"

SUNDAY ACROPOLIS: "New tete-a-tete for Christodoulos, Burns on US-Greek ties"

APOGEVMATINI: "15,000 public sector staff to get salaried status - seasonal workers, state firms and municipalities to follow"

TO VIMA: "Drachma's revaluation marks start of new euro zone era for the national currency"

SUNDAY VRADYNI: "15 traps in new income tax form"

SUNDAY ETHNOS: "What Simitis is telling senior party officials about early elections"

ELEFTHERI ORA: "New Democracy dissolving?"

EPOHI: "Euro-trick with drachma signals tough policy"

KATHIMERINI: "Economy on new track: Pleasant surprise in drachma's new 340.750 parity but new terms set for euro-zone entry"

SUNDAY AVGHI: "Political scene changes after drachma's revaluation"

SUNDAY AVRIANI: "10 stocks face ejection from Athens bourse"

SUNDAY ELEFTHEROTYPIA: "Drachma's new parity vs euro to bring changes in stocks, bonds, inflation and interest rates"

RIZOSPASTIS: "Wider significance for Communist Party backing in elections"

LOGOS: "Who's to blame for the mess at the Athens Stock Exchange?"

SUNDAY PARON: "Election ace may boomerang on Simitis, who wants the euro zone, Olympics and victory but risks losing all"

NIKI: "Papandreou signs cooperation agreements in Ankara, Cem to visit Athens"

SUNDAY TYPOS: "Pensions, new wages and age limits"

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