Athens News Agency: Daily News Bulletin in English, 01-03-15

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

CONTENTS

[01] Central bank sees inflation below 3.0 pct in second half

[02] FYROM foreign minister expresses appreciation for Greece's support in 'priority areas'

[03] Cyprus' UN envoy calls on T/C community to take advantage of EU prospects

[04] Alternate foreign minister meets Romanian president

[05] Tsohatzopoulos meets Simitis to discuss defense revision, party

[06] Tsohatzopoulos denies new Patriot III missiles deal does not include operational software

[07] Administrative Reform Council on Interior minister's proposals

[08] Deputy foreign minister Niotis visits Canada

[09] ND leader says PM has lost control and the government is falling apart

[10] KKE says 'anti-terrorism' draft bill would restrict civil liberties

[11] KEP spokeswoman announces Avramopoulos tour, names party officials

[12] High growth rates create big deficits, Papantoniou says

[13] Gov't to unveil proposals on social security reform next month

[14] EU funds' inflows to total 1.3 trillion drachmas this year

[15] Unemployment rate falls to 11.1 percent in 2nd quarter 2000

[16] U.S. Ambassador promises to promote investment in Evros, northeastern Greece

[17] Panel discussion focuses on Central Asia energy resources, 'pipeline vision'

[18] Federation of Greek Tourist Enterprises calls for creation of company to advertise and promote Greece

[19] Federations and unions request revision of state-assessed real estate prices

[20] Athens Medical Group announces expansion plan

[21] Antenna TV gets key deal with 20th Century Fox

[22] ASE chairman blames international turmoil for ASE fall

[23] Athens bourse saw 48 new entries in 2000, tapping Dr 871.6 bln

[24] Greek stocks plunge on foreign selling

[25] Athens Academy, Athens City Council oppose Olympic rowing center at Schinias

[26] General Confederation of Workers of Greece holds event on 2004 Athens Olympiad

[27] National Medicines Organization stresses repercussions from use of medicine Arava

[28] AMUN event for public and private high schools

[29] Aegean ministry to hold conference on ministry-funded projects

[30] Consumer Day events to focus on food safety, INKA says

[31] Kaklamanis says Youth Parliament to help Hymettus reforestation

[32] British Minister of State says no other negotiating track except the UN peace process

[01] Central bank sees inflation below 3.0 pct in second half

Athens, 15/03/2001 (ANA)

Submitting an interim report on monetary policy for 2000-2001 to parliament, Papademos said it was the last that would fall solely under the central bank's jurisdiction, and the first following the country's entry into the euro zone on January 1 this year.

He told a news conference that productivity and competitiveness had to show a continuous and marked improvement to allow Greece to achieve real convergence with the euro zone in a reasonable period of time, combined with price stability.

The country's social partners should strive to attain those targets through a moderate incomes and prices policy and an attempt to keep labor costs down per product unit, the central bank governor added.

If inflation consistently exceeded the average in member states of the European Union, competitiveness of the Greek economy would fall, with no offsetting factors.

Papademos did not rule out a lower rate of growth in gross domestic product than the government's forecast of 4.5 percent, rising to 5.0 percent in coming years.

Lower growth could help contain inflationary pressures but it would also lower government revenue from tax, which may decline further if the Athens Stock Exchange remains down, reducing tax from stock transactions, he said.

Finally, a widening in the current account deficit was not expected to continue in 2001, Papademos forecast.

According to preliminary data, the deficit almost doubled to 8.4 billion euros in January-December 2000 against 4.8 billion euros a year earlier.

The rise in 2000 was circumstantial, with around 40 percent of the increase in the deficit due to factors including a hike in world oil prices and a sharp decline in domestic interest rates that had led to a rise in loans directed towards imports, Papademos said.

The Bank of Greece governor is expected to address parliament's economic affairs committee on the bank's monetary policy.

[02] FYROM foreign minister expresses appreciation for Greece's support in 'priority areas'

SKOPJE, 15/03/2001 (ANA - M. Vichou)

"I view with particular appreciation Greece's support in the difficulties we are facing with the extremists," Kerim said after a meeting with Coalition of Left and Progress (SYN) leader Nicos Constantopoulos in the FYROM capital.

Kerim said Greece was supportive of FYROM "in all three priority areas" set out by his country, namely advancing economic reforms, incorporation in the Euro-Atlantic structures, and regional cooperation with the Balkan countries.

"Greek capital is helping the advancement of our economic reforms, and Greece is opening up the doors for us for entry into the European Union and NATO," Kerim told reporters after the meeting.

With respect to regional cooperation, he said that soon there would be a meeting among the three foreign ministers of Greece, FYROM and Albania in Skopje on the issue of the Little Prespa lake.

The prime ministers of Greece, Albania and FYROM met in the northern Greek town of Florina in February last year and declared a

"Balkan Park of Prespes", the Balkans' first cross-border protected natural reserve in the area of Prespes Lakes, one of Greece's most important wetlands, coinciding with the celebration of International Day for Wetlands.

The natural reserve, extending into Albanian and FYROM territory, is part of efforts to protect the quality of the lakes' waters, safeguard wildlife and bio-diversity, develop an integrated and sensitive approach to tourism in the area, and boost maintenance and promotion of traditional architecture and Byzantine and post-Byzantine monuments in the region.

Replying to questions on the idea of "federalization", Kerim said it was "problematic" because "democracy is advanced not through federalization, and until now our model, that of a state of citizens, has been efficient".

"It was with this model that the European Union signed the cooperation agreement with us," Kerim added.

Also, he added, "none of the western leaders" he had spoken with in his contacts over the past two months "agree that the model of federalization would be good" for FYROM.

[03] Cyprus' UN envoy calls on T/C community to take advantage of EU prospects

NEW YORK, 15/03/2001 (ANA - M. Georgiadou)

Speaking on the latest developments over the long-standing Cyprus issue, Ambassador Sotos Zakhaios noted that the Cypriot government has long acknowledged the fact that the island republic will be a bizonal, bicommunal federation, while Nicosia desires an effective central government in the future that operates smoothly within the EU's framework.

He also emphasized that Cyprus' projected accession to the European Union will benefit Turkish Cypriots immensely, as opposed to the present situation: the mass emigration from the Turkish-occupied areas along with import of illegal settlers from the Turkish mainland that has aggravated problems for the Turkish Cypriot community.

[04] Alternate foreign minister meets Romanian president

Athens, 15/03/2001 (ANA)

During the meeting with the Romanian president it was underlined by both sides that Romania's and Bulgaria's accession into the European Union would constitute an element of stability and economic development throughout the region.

Iliescu expressed his satisfaction over the development of bilateral relations and noted the important Greek presence in the investment sector.

The Romanian president has accepted an invitation by his Greek counterpart Kostis Stephanopoulos to visit Greece in the first 10 days of December.

[05] Tsohatzopoulos meets Simitis to discuss defense revision, party

Athens, 15/03/2001 (ANA)

He said the meeting had focused chiefly on the operation of the defense ministry and the prospective future operation of the PASOK party.

According to Tsohatzopoulos, the KYSEA council meeting would discuss the strategic defense revision, which will make institutional changes to the way the ministry operates, with greater interconnection between the three branches of the armed forces, and outline new responsibilities for the Armed Forces chief.

Other issues up for discussion will be training and arms procurements. For the latter, Tsohatzopoulos said that discussion on revising the goals of arms procurement program by the military would be completed within two or three weeks.

At the end of July last year, the government had announced a five-year (2001-2005) armaments procurement scheme for Greece's armed forces costing close to four trillion drachmas, which provided for the purchases of new tanks, transport planes and fighter jets.

Out of the approximately 3.95 trillion drachmas earmarked to finance the armaments program, 2.25 trillion were to be borrowed and the remainder to come from the state budget. The initial proposal by the national defense ministry called for a total spending of 4.4 trillion drachmas.

PASOK internal affairs: Commenting on his party's internal affairs, Tsohatzopoulos noted the need for PASOK to live up to its commitments to the electorate and present policies and proposals regarding problems such as development and the redistribution of wealth.

"We don't want to shut anyone out, what's important is that we use modern strategies to deal comprehensively with joblessness, employment, social insurance, the problems of families and young people, so that we confirm PASOK's role in the modern era," he said.

[06] Tsohatzopoulos denies new Patriot III missiles deal does not include operational software

Athens, 15/03/2001 (ANA)

In February 1999, Greece signed a purchase agreement for four US-made long-range new generation Patriot Advanced Capability (PAC 3) anti-missile systems worth 887 million US dollars with manufacturers Raytheon.

Replying Wednesday to a question in parliament tabled by main opposition New Democracy MP Iordanis Tzamtzis "regarding the payment of the software program for the Patriot missiles" and claiming that "a company is demanding 30 billion dr. from the defense ministry for the missiles' software", Tsohatzopoulos said that the deputy had "fallen victim to misinformation" since the purchase contract stipulated that "the system will not be taken delivery of without the software", adding that such a "company and its supposed demand" were "unknown".

The minister continued that until the cutting-edge technology Patriot-III missiles were delivered, second-hand Patriot-II systems had been made available to Greece, through the method of leasing, so that the Armed Forces could train in the systems' use in the interim period.

Tsohatzopoulos further said that the US government had proposed to Greece that it participate, together with the other countries acquiring Patriot-III systems, in a group for the "technical support and development of the new systems", adding that the offer was "being negotiated as participation in the group entails some cost".

Tsohatzopoulos invited Tzamtzis to attend a test of the Patriot-III system, "which only the United States, Germany, Israel and Greece have", after the ND deputy insisted that the new system was "blind".

Replying to Tzamtzis' claim that procurement of the software would escalate the cost of the purchase, Tsohatzopoulos explained that the increase in the cost of the deal was related to use of an option in the contract for the purchase of two additional systems.

Under the terms of the agreement signed in 1999, the total purchase program amounted to 917 million dollars (of which 887 million for the missile systems themselves), including the leasing of the Patriot-II units for three years, and would rise to 1.139 billion dollars if Greece picked up on its option for the additional two systems.

Also under the terms of the 1999 agreement, delivery of the Patriot-III systems would begin as of September 2001 and be completed by May 2002, with all systems fully operational.

The government anticipated at the time that offset benefits linked to the procurement deal would reach 120 percent of the total purchase value, while eight Greek public and private firms would be participating as sub-contractors in the production of other Patriot systems ordered by third countries, with that joint participation estimated at one billion dollars for expected orders for 24 Patriot units.

[07] Administrative Reform Council on Interior minister's proposals

Athens, 15/03/2001 (ANA)

The council's brief is to discuss improvements for the operation of the civil service and make recommendations, which are not, however, binding for the government.

The seminar was addressed by Interior Minister Vasso Papandreou, who reiterated that it would discuss issues related to upgrading public administration and the quality of services it provided, increasing its effectiveness and unifying procedures, supporting dialogue with the workforce and using new technology to govern the country.

She particularly stressed planned improvements in approving pensions, a process that could currently take up to 10 months or even years, according to some speakers.

The Council's conclusions based on the proposals outlined by the minister will be submitted to the Cabinet so that final decisions can be made.

The president of the ADEDY union Spyros Papaspyros expressed the union's opposition to reducing the state's role in public administration and to policies for shrinking and limiting the public sector, such as contracting services out and privatizations.

The union is also against changes in the way that civil servants rise up the ranks, the further reduction of public-sector activities, reducing staff in the public sector and differentiating between staff in terms of pay and prospects.

Claiming that the civil service was the victim of a campaign to discredit it, Papaspyros called for monitoring and assessment of the planned reform policies, defining organizational structure and management models, transferring remits, greater fairness and the acceptance and utilization of trade union proposals.

[08] Deputy foreign minister Niotis visits Canada

MONTREAL, 15/03/2001 (ANA - I. Frangouli)

The Greek children showed great interest in offering their services voluntarily in participating in the organization of the Athens 2004 Olympic Games.

Niotis was due to meet on Wednesday with Canada's Prime Minister Jean Chretien and with Foreign Minister John Manley to discuss Greek-Canadian bilateral relations within the frame-work of NATO, the situation in the Balkans and European Union issues.

Niotis will remain in Canada until Friday.

[09] ND leader says PM has lost control and the government is falling apart

Athens, 15/03/2001 (ANA)

Karamanlis was referring to recent intraparty conflicts in the ruling PASOK party during an address at a party conference on "Quality of democracy-Institutions and transparency" in light of the party's upcoming congress.

"The prime minister is preoccupied with the creation of impressions to show that he still exists at his post, but he takes no decisions and neither can he do so, while this is the greatest problem of a country with so many problems and such pressing needs," he said.

Karamanlis said the government vacuum is growing by the day, adding that the rift between the government and society is widening and that the solution is up to his party.

[10] KKE says 'anti-terrorism' draft bill would restrict civil liberties

Athens, 15/03/2001 (ANA)

KKE's leadership also cited "press reports" of pending legislation aimed at curbing protest marches, claiming that prior notification to authorities, videotaping of demonstrations and bans are envisioned.

KKE leader Aleka Papariga also repeated her party's positions that the long-anticipated and controversial legislation, which was unveiled on Monday by the justice ministry, would violate citizens' civil liberties. Papariga tabled a question on the issue in Parliament, asking for a reply by the prime minister.

One of the key provisions in the draft bill allows for DNA testing of individuals "when well-founded suspicions exist" that felonies have been committed. A magistrate would have to order the mandatory DNA testing, while any genetic material gathered and tested would subsequently be destroyed, according to the proposed bill.

Collection of personal data, including phone conversations and videotaping of individuals' identified as suspects is also included in provisions, along with the legal framework for Greece's first-ever "witness protection program" and amnesty for members of terrorist or organized crime gangs who turn state's evidence.

The bill comes on the heels of growing pressure to track down and convict members of the notorious "November 17" terrorist group, blamed for more than two dozen assassinations and bomb attacks dating back to the mid-70s.

The DNA clause could be utilized for investigations into at least one "November 17", a rocket attack against the German ambassador's residence in May 1999. Bloodstains probably belonging to one of the terrorists were discovered inside a stolen vehicle used in the attack along with a wool cap.

Besides civil liberties, critics say provisions - such as judicially approved wiretaps and police surveillance -- are already foreseen by current legislation.

The government, meanwhile, has denied that the legislation is the product of foreign pressure or that it primarily targets terrorism, saying that organized crime, money laundering and corruption are main targets.

[11] KEP spokeswoman announces Avramopoulos tour, names party officials

Athens, 15/03/2001 (ANA)

She announced that Costas Triantafyllou was to be the general director of the party's new offices, and denied reports that he had resigned as "ridiculous and groundless".

She also named Yannis Golias as head of the organizational section, Spyros Pappas as head of ideological section, George Kountouris as head of political planning section, Thomas Papanastasiou for regional policy.

Asked how the Athens Mayor had acquired a helicopter that he used to visit Ileia over the weekend, Vozenberg said the Livanos family of shippers had supplied the helicopter.

[12] High growth rates create big deficits, Papantoniou says

Athens, 15/03/2001 (ANA)

Speaking to reporters after a meeting of the Economic and Social Policy Committee, Papantoniou hinted that the Greek economy could have recorded growth rates of 7.0 percent if it were not for high fuel prices and stressed that the country would continue having significant trade deficits in the next 4-6 years.

"This is natural because all investments in the country are imported," he said.

Papantoniou noted that ensuring funds for maintaining high growth rates in the country was one of the reasons for Greece's entry in to the eurozone.

The meeting discussed progress of Lisbon's European Council decisions ahead of an EU summit in Stockholm at the end of March aiming to improve Europe's competitiveness.

Papantoniou said the meeting agreed that Greece has made significant progress on the issues of employment, market deregulation, new economy and social exclusion.

Education Minister Petros Efthimiou stressed the government's initiatives to expand the use of new technology in the economy and education.

"Our aim is that by the end of 2001 every Greek child around the country to have access to a computer and the Internet," Papantoniou said.

[13] Gov't to unveil proposals on social security reform next month

Athens, 15/03/2001 (ANA)

Speaking to reporters after a meeting with Prime Minister Costas Simitis, Giannitsis dismissed recent press reports on the conclusions of a survey drafted by a UK firm on the Greek welfare system, saying the reports did not reflect the truth both in findings and conclusions of the survey.

Giannitsis said a dialogue on the reform of the social security system would begin in April after completion of a GSEE (Greece's largest trade union umbrella) congress.

ND asks that UK firm's report on social insurance be made public: Main opposition New Democracy deputy Dimitris Sioufas, in a question for Prime Minister Costas Simitis in Parliament on Wednesday, has asked that a report by a UK firm of consultants on overhauling the country's social insurance system be made public.

He also asked the government to clarify whether discussion of planned reforms would be carried out on the basis of the report.

[14] EU funds' inflows to total 1.3 trillion drachmas this year

Athens, 15/03/2001 (ANA)

Speaking to reporters over a process of managing and distributing EU funds, Pahtas said pre-approvals have already totalled 510 billion drachmas and that the government expected delivery of the first 500 billion drachmas, out of a total 1.3 trillion drachmas earmarked for the country this year, next month.

[15] Unemployment rate falls to 11.1 percent in 2nd quarter 2000

Athens, 15/03/2001 (ANA)

The NSS said that the number of unemployed people fell below 500,000 for the first time since the third quarter of 1998.

[16] U.S. Ambassador promises to promote investment in Evros, northeastern Greece

Athens, 15/03/2001 (ANA)

Burns, who concluded a tour of eastern Macedonia and Thrace, with his visit to the capital of Evros, Alexandroupoli, met with the local leadership and discussed the capacity of the region to accept investment, especially in regards to existing infrastructure and cross border cooperation with Turkey and Bulgaria.

[17] Panel discussion focuses on Central Asia energy resources, 'pipeline vision'

Athens, 15/03/2001 (ANA)

State-run Hellenic Petroleum (EL.PE) executive Mihalis Myrianthis focused on what he called the "great game" as related to a so-called "pipeline vision" shared by the countries in the Central Asia, most of whom gained independence after the collapse of the Soviet Union in the early 1990s.

He also referred to the "dubious economic viability" of the ambitious Baku-Ceyhan pipeline project - which would conceivably transport oil from the Caspian Sea to a Turkish port in the eastern Mediterranean - and to three "Balkan" options for new pipelines: