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Athens News Agency: Daily News Bulletin in English, 00-04-26

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

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

CONTENTS

  • [01] Bank of Greece urges wide economic restructuring
  • [02] Athens reiterates its standing position over recourse to The Hague
  • [03] Greek PM calls for accelerated 2004 preparations
  • [04] Alternate foreign minister says Greece interested in Turkey's European vocation
  • [05] FM Balkan desk director to represent government at Yugoslav embassy reception
  • [06] Initial gov't meeting on constitutional revision held
  • [07] Foreign ministry condemns desecration of Jewish monument, Synagoge
  • [08] Greek stocks end sharply lower on ASE
  • [09] Development ministry gets new senior officials
  • [10] Two Greek carriers sign strategic partnership deal
  • [11] Ionian Bank to delist due to merger with Alpha
  • [12] Ergobank joins latest round of rate cuts
  • [13] Strict market controls over Easter period will keep prices in check
  • [14] N. Greek exporters set up electronic library
  • [15] Seven brokerages fined for Korasidis share rise
  • [16] Car and Moto Accessories and Hi-Fi Show 2000 in Thessaloniki on May 12-14
  • [17] Government says Denktash trying to torpedo UN talks
  • [18] Territory the key issue for Cyprus sulution, FM says
  • [19] Funds for bicommunal projects must have government's consent

  • [01] Bank of Greece urges wide economic restructuring

    Athens, 26/04/2000 (ANA)

    The Bank of Greece on Tuesday urged for a wider economic restructuring in the country, with changes in the labour market, energy, telecommunications and services.

    Presenting the central bank's annual report, Bank of Greece's governor Lucas Papademos, said that these reforms could contribute in improving the country's competitiveness, boost competition and create new jobs.

    Papademos remained concerned over the course of inflation saying that price stability could not be ensured in 2000 only through monetary policy. "It is feasible, however, if the government adheres to its economy and structural policies while the incomes and billing policies help in the creation of price stability conditions," he noted.

    The Bank of Greece said there were four categories of structural reforms needed: First, reforms aimed at liberalising domestic markets and reducing state intervention, such as speedier liberalisation in energy, services and telecommunications markets, and completion of privatisations to improve the quality and competitiveness of Greek products and services, a move that would ensure price stability.

    Second, reforms aimed at strengthening the state's role in certain sectors and improving their efficiency, such as education, professional training and technological research.

    Third, reforming the institutional framework in business environment to promote investments and business activity, such as simplier procedures to set-up new businesses and opening the door to foreing investments in Greek companies.

    Fourth, institutional reforms aimed to improve the financial sector's function and in particular financing of small- and medium-sized enterprises, the driving force of economic growth. Reducing labour tax burdens and offering tax incentives could boost employment, particularly among younger people, the central bank said. The report, however, stressed the need for greater flexibility in the labour market and in particular working hours and wages.

    The Bank of Greece warned that the inflation rate in country could diverge from the Eurozone's average inflation rate in the short- and long-term, with a negative impact on the economy and employment.

    The report also said that prospects of speedier economic growth were not guaranteed by the adoption of the euro currency.

    [02] Athens reiterates its standing position over recourse to The Hague

    Athens, 26/04/2000 (ANA)

    The Greek government reiterated on Tuesday that only the Aegean's continental shelf ranks as an issue to be resolved between Athens and Ankara in the specific maritime region, a response to recent statements by the Turkish foreign minister and Turkey's powerful military chief.

    Greek government spokesman Dimitris Reppas also noted that Ankara has assumed commitments--such as following certain dispute-solving procedures--emanating from last December's EU Helsinki summit, while stressing that differences between countries must be solved through peaceful means and without the threat of violence. The spokesman added that Ankara should take recourse to The Hague if it believes a problem exists, adding that ongoing bilateral talks for the implementation of nine recently signed agreements will continue along with Greek-Turkish rapprochement, "which is a decision by the two governments and two peoples."

    According to an ANA dispatch on Monday, Turkey's military chief cautioned the previous day that "a positive result can't be achieved if the two sides refer to different things", when asked to comment on the possibility of upcoming Greek-Turkish talks focusing on the Aegean.

    Turkish general staff chief Gen. Hussein Kivrikoglu also stated that "the Greek side is only referring to the issue of the (Aegean) continental shelf, while we are referring to four or five problems."

    "We've already proposed bilateral meetings on the military level in order to reduce tension in the Aegean, as well as the holding of joint (military) exercises," Kivrikoglu said during a reception at the Turkish national assembly, before adding: "The Greek side said it would answer, but we haven't as yet received its reply."

    Athens has long maintained that the only difference separating Greece and Turkey in the Aegean is the issue of the sea's continental shelf, a matter Greek leadership steadfastly believes must be adjudicated by the International Court of Justice at The Hague. The Greek side also counters that the provisions of ecumenically accepted international treaties and agreements nullify demands Turkish leaders have raised over the past 27 years with respect to air space, flight information regions (FIR), territorial waters and uninhabited islets, among others.

    On his part, Turkish Foreign Minister Ismail Cem was quoted in a Turkish mass daily earlier in the week as saying that contacts between Athens and Ankara over the Aegean are expected to start in the coming period.

    Foreign ministry condemns burning of flags, other symbols: Greece's foreign ministry on Tuesday issued a condemnation of this week's burning of a Turkish flag outside the Turkish embassy here during a protest rally by the Armenian National Committee.

    A foreign ministry spokesman said any such acts against national symbols of other countries are "unacceptable".

    The group demonstrated outside the Turkish embassy as part of its long-standing demand that Ankara recognise the 1915 genocide of Armenians in western Asia Minor committed by Ottoman forces.

    [03] Greek PM calls for accelerated 2004 preparations

    Athens, 26/04/2000 (ANA)

    Greek Prime Minister Costas Simitis on Tuesday called for accelerated 2004 preparations during a quickly convened meeting with the "Athens 2004" organising committee's president, less than a week after highly publicised criticism by IOC President Juan Antonio Samaranch.

    Speaking to reporters after the one-hour meeting, "Athens 2004" president Panayiotis Thomopoulos said his talks with the Greek premier covered a wide range of topics regarding the 2004 Olympiad, especially the delays, which he described as "minor".

    Stinging criticism by Samaranch last Thursday over organisers' preparations for the 2004 Olympics raised eyebrows in Athens and generated quick responses from local officials.

    The powerful IOC chief tersely said that the 2004 summer games would be in "danger" unless Greek organisers made "drastic" changes by the end of the year. However, he later qualified his warning the same day during at a press conference in Lausanne by saying: "I cannot imagine the Games will not be held in Athens... We hope after this warning all things will be in the right way."

    Thomopoulos attributed delays in several Olympics-related projects to the recent campaign period in Greece, while saying relevant presidential decrees were ready and could now be forwarded for approval.

    In reply to press questions on whether changes needed to be made in the coordination or among top organising committee executives, Thomopoulos said there was no problem with respect to coordination, nor was a change in personnel under consideration. Thomopoulos said he also discussed with Simitis the issue of hotel accommodations during the Games, as well as the all-important media centre.

    In related remarks, the government's spokesman echoed Thomopoulos' statements in terms of retaining the current organising committee composition.

    Spokesman Dimitris Reppas said the government isn't considering changes to the organising committee's leadership and doesn't foresee the creation of a special "Olympic Games ministry" -- as some press reports claimed the IOC is promoting.

    Environmental groups react: Meanwhile, representatives of several environmental advocacy groups squarely pointed at the government and the "Athens 2004" organisation for the delays in preparations, at the same time deflecting what they called attempts to unfairly shift the blame on their shoulders.

    Speaking during a joint press conference on Tuesday in Athens, representatives of groups such as WWF Hellas, the Greek Ornithological Society and the Greek Society for the Preservation of Nature, among others, stated that despite problems there is "still enough time for the completion of the Olympic projects".

    "Once again, what is ascertained is the continuing absence of any (positive) environmental aspect of the 2004 Olympiad, the lack of democratic dialogue and community participation in the planning of projects, as well as an effort to blame environmental groups and social groups ... for the delays," one representative said.

    Environmentalists also accused the 2004 organisers of summarily rejecting their proposals for alternative sites to build Olympic projects.

    Culture minister says timetables for 2004 Athens Olympics will be observed: Culture Minister Theodoros Pangalos told sports reporters on Tuesday he is determined to do everything possible to enable timetables set for the 2004 Athens Olympics to be observed, adding that the period of uncertainty is over and developments will take place on all of the Olympiad's fronts immediately after Easter.

    Pangalos said there was no expediency in recent statements by International Olympic Committee (IOC) President Juan Antonio Samaranch and expressed optimism that the existing climate will change in a month's time with the suitable actions which will be taken. On the question of the Interministerial Committee, he announced that it will be enlarged with the participation of the Foreign Affairs and Transport ministries.

    Regarding the 2004 Olympiad, Development Minister Nikos Christodoulakis held talks with Athens hoteliers on Tuesday for finalised decisions to be taken on both the quantitative and qualitative adequacy of beds.

    He said that the finalised agreement between the Athens 2004 company and the Union of Athens Hoteliers on accommodation and prices will be signed soon.

    [04] Alternate foreign minister says Greece interested in Turkey's European vocation

    Athens, 26/04/2000 (ANA)

    Alternate Foreign Minister Elizabeth Papazoi said on Tuesday Greece attributes special importance both to the issue of the European Union's institutional restructuring and issues concerning the EU's security and defence.

    Speaking to reporters, Papazoi said Greece is interested in Turkey's European vocation and the implementation of decisions taken at the Helsinki EU summit regarding candidate country status and its partnership relationship with the EU.

    She also said that Greece is interested in the implementation of Helsinki's decisions on Cyprus, meaning a smooth accession which will not depend on a solution to the Cyprus issue.

    Papazoi said that at the moment Cyprus is at the most advanced stage regarding negotiations (it is ranked among countries belonging to the first wave of EU enlargement) since 15 chapters have already been examined which concern the individual negotiating sectors.

    She said that she met with the representative of Cyprus responsible for accession negotiations, former Cyprus President George Vassiliou, on April 20, adding that meetings with him will continue in the future. She also noted that the proposal by Cyprus President Glafcos Clerides for the participation of the Turkish Cypriots in negotiations still holds, but has not been accepted by the other side.

    [05] FM Balkan desk director to represent government at Yugoslav embassy reception

    Athens, 26/04/2000 (ANA)

    Foreign Ministry Balkan Affairs Director Michalis Spinellis was scheduled to represent the Greek government on Tuesday night at the Yugoslav embassy reception held by Belgrade's Ambassador to Athens Dragomir Vucicevic, in light of that country's national holiday.

    Following a decision by Foreign Minister George Papandreou, Spinellis will represent the Greek government at the embassy celebrations, while Greek Ambassador to Belgrade Panagiotis Vlassopoulos will represent the government in Yugoslavia.

    The Greek Ambassador to Moscow Dimitris Kypraios was scheduled to attend the reception in the Yugoslav embassy in Russia.

    The rest of the European Union member-states declined invitations to the events.

    In a telephone conversation with Papandreou, Yugoslav opposition leader Vuk Drascovic requested a meeting in Athens with him.

    Papandreou accepted, responding however that this meeting may take place following his visit to the United States and his stay at the Azores, where the European Union Foreign Ministers' Council is scheduled to meet regarding the Union's policy in the Balkans.

    Earlier in the day, Athens denied it was interfering in Yugoslavia's domestic affairs, following criticism out of Belgrade that the Greek government organised a recent meeting of Yugoslav opposition figures here.

    Government spokesman Dimitris Reppas made the statements in reaction to the summoning of Greece's ambassador to the Yugoslav foreign ministry over the issue.

    Reppas said the Greek government maintains contacts with all the primary political elements of Yugoslavia and is concerned with the "smooth operation of democratic institutions in the neighbouring countries."

    [06] Initial gov't meeting on constitutional revision held

    Athens, 26/04/2000 (ANA)

    High-level government contacts commenced on Tuesday over the issue of constitutional revision, as the current Parliament retains the authority of amending Greece's constitution. Greek Prime Minister Costas Simitis chaired an initial meeting, with participants including newly appointed Justice Minister Mihalis Statholopoulos, former justice minister Evangelos Venizelos, the premier's legal adviser, Georgios Papadimitriou, as well as re-elected Parliament president Apostolos Kaklamanis.

    In terms of the controversial issue of altering the election law in favour of a more proportional system, a long-standing demand of the country's smaller parties, Venizelos later told reporters that any such discussions were "untimely" and "not connected with the this revision".

    Kaklamanis, who is authorised to begin talks on constitutional revision with the parties represented in Parliament - ruling PASOK, main opposition New Democracy, the Communist Party of Greece (KKE) and the Coalition of the Left (Synaspismos) - noted that possible revisions will be completed within the 300-member legislature's first session, without however, specifying the exact timetable.

    Venizelos, a constitutional law expert and deputy from the Thessaloniki area, reportedly passed out a text of his views to the meeting's other participants, including a report commissioned by the premier focusing on "national provisions" that will be discussed with the opposition.

    Other topics discussed included the updating of electoral rolls, absentee voting and election districts, among others.

    Finally, government spokesman Dimitris Reppas said Parliament would begin debate on constitutional revision after the Orthodox Easter recess. He also said the government has already initiated contacts with opposition parties over the matter.

    [07] Foreign ministry condemns desecration of Jewish monument, Synagoge

    Athens, 26/04/2000 (ANA)

    Foreign Ministry spokesman P. Beglitis on Tuesday condemned the acts of vandalism against the Jewish Holocaust Monument and the Jewish Synagogue in Thessaloniki on April 20.

    "We condemn in the most definite way the desecration of the monument to the victims of the holocaust and the Holy Synagogue of Thessaloniki, apparently committed by 'neo-Nazi' elements, on April 20, coinciding with the Jewish Passover celebration.

    "This act of desecration, against the holy sites and symbols of the Jewish community of Greece, blatantly insults the historical memory of Thessaloniki, for the preservation of which the Greek government, in honour to Greek Jews, victims of Nazism, three years ago built a monument to the Holocaust.

    "Already, the responsible authorities have began work to expose the culprits and for their exemplary punishment."

    [08] Greek stocks end sharply lower on ASE

    Athens, 26/04/2000 (ANA)

    Equity prices came under pressure on Tuesday to end sharply lower on the Athens Stock Exchange. Traders attributed the change of climate to lack of buying interest and to a sharp fall in technology stocks worldwide. Turnover was extremely low ahead of the Orthodox Easter holidays, totalling 97 billion drachmas.

    Smaller capitalisation and construction stocks suffered the heaviest losses with a total of 60 issues ending at the day's 10.0 percent limit down.

    The general index ended at 4,224.45 points, off 3.17 percent. The FTSE/ASE 20 index for blue chip and heavy traded stocks ended 2.81 percent lower at 2,404.31 points and the FTSE/ASE 40 index plunged 4.82 percent to 557.03 points.

    Sector indices ended as follows: Banks: 8,367.65

    -2.41% Leasing: 891.15 -4.87% Insurance: 2,861.21

    -1.15% Investment: 1,799.94 -3.26% Construction:

    2,076.22 -6.74% Industrials: 2,494.95 -3.36% Miscellaneous: 4,023.09 -4.72% Holding: 4,637.89

    -3.58%

    The parallel market index for smaller capitalisation stocks ended at 704.11 points, down 7.52 percent.

    Broadly, decliners led advancers by 325 to 18 with only one issue unchanged.

    Daios Plastics, Hellenic Telecoms, Viohalco and ETBAbank were the most heavily traded stocks.

    Leading shares' closing prices (in Drs): National Bank: 22,300 Alpha Credit: 20,740 Commercial Bank: 19,400 Ergobank: 7,225 Eurobank: 10,000 Hellenic Telecoms: 8,290 Panafon: 4,410 Hellenic Petroleum: 3,850 Intracom: 12,950 Minoan Lines: 5,680 Hellenic Bottling: 5,900 Heracles Cement: 8,220 Titan Cement (c): 14,700

    Bonds nose up in light trade: Bond prices in the domestic secondary market rose in thin trade on Tuesday with players showing interest across the board.

    The Greek benchmark 10-year bond showed a yield of 6.12 percent from 6.13 percent a day earlier and 6.02 percent in the two previous sessions.

    The paper's yield spread over German bunds was 78 basis points from 84 basis points in the previous session and 78 basis points for three consecutive sessions before that.

    Turnover through the central bank's electronic system totalled 24 billion drachmas from 6.0 billion drachmas a day earlier and 12 billion drachmas for two straight sessions before that.

    Of Tuesday's total, buy orders accounted for the whole of turnover.

    Drachma drops vs euro, dollar: The drachma on Tuesday fell against the euro and the US dollar in the domestic foreign exchange market.

    At the central bank's daily fixing, the euro was set at 335.690 drachmas from 335.600 drachmas a trading day earlier and 335.550 drachmas on Friday.

    Also at the fixing, the US dollar was set at 358.120 drachmas from 357.070 drachmas in the previous session and 357.870 drachmas on Friday.

    [09] Development ministry gets new senior officials

    Athens, 26/04/2000 (ANA)

    Development Minister Nikos Christodoulakis said on Tuesday that he had appointed three new secretaries general. The appointments are as follows: * Secretary General of Research and Technology, Dimitris Deniozos (until now president of the Labour Institute)

  • Secretary General of Industry, Yiannis Kalogirou (professor at the National Technical University of Athens)

  • Secretary General of Commerce and Consumer Affairs, Dimitris Mardas (professor at Aristotelian University of Thessaloniki).

    [10] Two Greek carriers sign strategic partnership deal

    Athens, 26/04/2000 (ANA)

    Two Greek private carriers, Aegean Airlines and Cronus Airlines, on Tuesday announced the signing of a strategic partnership deal to jointly develop their domestic flight network.

    The two companies' fleet totals 15 aircraft and they have a daily flight schedule with over 140 flights to 18 destinations in Greece and abroad.

    Aegean and Cronus agreed to reschedule their flight operations.

    The deal would offer passengers a more comprehensive choice of flight schedule with common flight codes. Passengers could travel with both airlines using each other's tickets.

    The two carriers expect to carry more than 200,000 passengers in domestic flights this month compared with only 70,000 passengers the same month last year, an increase of 185 percent.

    Their combined passenger capacity exceeds 300,000 passengers on a monthly basis, with more than 800 flights weekly.

    [11] Ionian Bank to delist due to merger with Alpha

    Athens, 26/04/2000 (ANA)

    Ionian Bank is to delist from the Athens Stock Exchange on Wednesday due to the completion of its merger with Alpha Credit Bank. Alpha had acquired a controlling stake in Ionian in a privatisation tender last year.

    The holders of shares in Ionian Bank on Tuesday are entitled to newly issued stock in Alpha Credit Bank at one new share for 1.5 existing.

    The bank to emerge has been renamed Alpha Bank.

    [12] Ergobank joins latest round of rate cuts

    Athens, 26/04/2000 (ANA)

    Ergobank on Tuesday announced that it was lowering its deposit and loan rates, effective on May 1. The decision follows a decline in the central bank's intervention rates last week and ensuing reductions by other commercial banks.

    Ergobank's savings deposit rate is to drop by 50 basis points to 6.0 percent. Its base rate for operating capital will fall to 13.0 percent from 13.75 percent.

    [13] Strict market controls over Easter period will keep prices in check

    Athens, 26/04/2000 (ANA)

    State functionaries are already carrying out strict market controls in light of Sunday's Easter holiday to ensure the adequacy of supplies, the good quality of products and keep prices in check. Development Minister Nikos Christodoulakis told a press conference on Tuesday that according to data obtained so far, the overall cost of this year's Easter dinner table is only 2-2.3 percent higher than last year, meaning that price increases are slightly lower than inflation. He added that fluctuations naturally exist and prices are lower for some commodities and higher for others.

    Deputy Development Minister Milena Apostolaki also said that the state of the market is normal in general. She held a meeting with wholesale dealers, producers, street and supermarket representatives and other market officials and offered assurances that controls are strict and are taking place all over the country in cooperation with prefectural authorities.

    Apostolaki further said that consumers can call 1720 from 9 a.m. to 5:30 p.m. to make possible complaints and for information on market conditions.

    [14] N. Greek exporters set up electronic library

    Athens, 26/04/2000 (ANA)

    The Association of Northern Greek Exporters (SEVE) said on Tuesday it had created an electronic library that can be accessed through the Internet on www.seve.gr/gr/gmain.html

    The library, which contains useful information for exporters, is open to members, and also to trade associations by agreement, SEVE said.

    [15] Seven brokerages fined for Korasidis share rise

    Athens, 26/04/2000 (ANA)

    The capital markets commission announced on Tuesday that it had slapped a total of 132 million drachmas in fines on seven brokerages for the abrupt rise on the Athens Stock Exchange of Korasidis Telecom on its first day of trade.

    The brokerages charged with artificially fuelling the stock's ascent at the bourse's opening and distorting its price were Devletoglou, Petropoulakis, Mega Trust, Pegasus, Axon, Macedonia-Thrace and Lavrentakis, the commission said in a statement.

    [16] Car and Moto Accessories and Hi-Fi Show 2000 in Thessaloniki on May 12-14

    Athens, 26/04/2000 (ANA)

    Over 100 cars, racing cars, antiques, luxury cars and sports cars, as well as Demo cars, will participate in this year's three-day Car and Moto Accessories and Hi-Fi Show 2000 to be held at the installations of the Thessaloniki International Fair on May 12-14.

    According to an announcement, a series of events will be held such as driving displays, baby cross and displays by antique cars.

    Eight car representatives will present their latest models on the premises, 15 companies will display motorcycles and accessories, 16 tyres and wheel parts and 30 others preservatives, spare parts and driving accessories.

    [17] Government says Denktash trying to torpedo UN talks

    NICOSIA, 26/04/2000 (CNA/ANA)

    The Cyprus government believes that calls by the Turkish Cypriot side to exert pressure on the Greek Cypriot side at the UN peace talks find no response in foreign mediators trying to help the peace process.

    "The Greek Cypriot side operates within the framework of UN Security Council resolutions and the G8 call for comprehensive negotiations," government spokesman Michalis Papapetrou said at his daily press briefing on Tuesday.

    He said that "Turkish Cypriot leader Rauf Denktash is trying to torpedo and undermine the UN talks and is calling for pressure on the Greek Cypriot side, which complies with the UN resolutions."

    "This, I am convinced, has no bearing on the various mediators and it has become obvious that they are moving in the direction of the Turkish side to change its stance," Papapetrou said.

    So far the two sides have outlined their positions on the four core issues the UN has identified (security, constitution, property and territory) but there has been no negotiating as such.

    Denktash insists on recognition of his self-styled regime in the Turkish-occupied part of Cyprus before he starts to negotiate. The third round of talks is due to begin on May 23 in New York.

    [18] Territory the key issue for Cyprus sulution, FM says

    NICOSIA, 26/04/2000 (CNA/ANA)

    Cyprus Foreign Minister Ioannis Kasoulides has said that territory is the key issue for a settlement and rejected a demand by Turkish Cypriot leader Rauf Denktash for an exchange of all properties between Greek and Turkish Cypriots.

    Addressing a Rotarian gathering in Nicosia on Monday night, the foreign minister said the Cyprus government would not discuss such a demand because it was "contrary to internationally accepted human rights".

    "The solution will not come through the exchange of properties. The key to the solution is the territorial aspect. If they (the Turkish side) want peace, it is with land that peace will come. Land for peace", the Cypriot minister told his audience.

    Kasoulides told Rotarians, most of them from Famagusta, a renowned tourist resort before the Turkish invasion, that return of their hometown to the control of the Republic of Cyprus "could precede the implementation of a settlement as a good will gesture on the part of the Turkish side and as a way of restoring confidence between the two communities.""In return, the Cyprus government could consider favourably a request for assistance to the Turkish Cypriots, within the context of legality, so that they could face their financial difficulties."

    The Cypriot minister said Famagusta, a ghost town since the 1974 Turkish invasion, "should be transferred to the administration of the Cyprus Republic, not that of the United Nations."

    He made clear that Famagusta should be integrated into the government-controlled part of Cyprus, Turkish occupation troops should withdraw completely and access to the town should be absolutely free and safe, making possible the return of its inhabitants.

    Some 200,000 Greek Cypriots, making one third of the island's population, were forcibly uprooted by the Turkish invasion troops 26 years ago and are still unable to return to their homes and properties.

    [19] Funds for bicommunal projects must have government's consent

    NICOSIA, 26/04/2000 (CNA/ANA)

    Any bicommunal projects and any funds for such projects will have to have the consent of the government of the Republic of Cyprus, government spokesman Michalis Papapetrou said here on Tuesday, stressing that funding must not, directly or indirectly, give rise to recognition of the illegal Turkish Cypriot regime in occupied Cyprus.

    He also said work is already underway to set up an office in Brussels of non-governmental organisations and to contribute to the sewerage system of wider Nicosia, known as "the master plan."

    The spokesman's comments were made amid a flurry of press reports that European Union funds will find their way to the Turkish Cypriot community via means that could be tantamount to recognition of the self-styled regime.

    "All projects that may materialise and all funds to be allocated will go ahead with the consent of the Republic of Cyprus," Papapetrou said, noting that the Turkish Cypriot community has received funding for bicommmunal projects in the past.

    Replying to questions, the spokesman said "EU funds intend to be used to raise the living standard of Turkish Cypriots as Brussels, like us, wishes to embrace in its ranks the entire island of Cyprus."

    Papapetrou explained that EU funds are allocated to the Planning Bureau of the government of the Republic and whenever the Turkish Cypriot leader Rauf Denktash has refused to receive funds for the Turkish Cypriot community, these were placed in the Bureau's account at the Central Bank for safe-keeping and have remained unused.

    The EU has repeatedly said it negotiates with governments and not entities or regimes. Denktash, in its bid to gain international recognition of his illegal regime, declines any funds coming through the government of Cyprus.

    The EU decided at its last summit in Helsinki that Cyprus could join the Union, even if the political problem on the island, the division and Turkish occupation, remains unresolved.


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