Athens News Agency: Daily News Bulletin in English, 01-04-20

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

CONTENTS

[01] Premier says social insurance system reforms necessary

[02] Prime Minister to meet with President on Friday, sources say

[03] Greek Defense Minister says Turkey obliged to abandon policy of threats

[04] Defense Minister and French counterpart discuss European security and defense

[05] Orthodox, Catholic officials cover final details of pope's visit

[06] PASOK delegation in Mideast on Friday

[07] National Economy Minister says 2001 budget will be carried out normally and with no change

[08] Papantoniou to euro zone meeting in Sweden

[09] Greece announces EU funds' monitoring committee

[10] EU releases Dr 20 bln for Greek telecoms program

[11] Deloitte & Touche wins valuation of Olympic Airways

[12] Greek businessmen active in Germany hold contacts with officials in Xanthi

[13] Greek stocks succumb to early profit taking

[14] Anniversary of Lord Byron's death commemorated

[15] Greek Soccer Federation accepts Turkish proposal for discussions on joint hosting of Euro 2008 championship

[16] Cyprus protests Turkish infringements of Nicosia FIR

[17] Cyprus government responds to Turkish foreign minister's threats

[18] Clerides meets Mubarak

[01] Premier says social insurance system reforms necessary

Athens, 20/04/2001 (ANA)

Simitis made his statements, following a six-hour meeting where the Inner Cabinet and the ruling PASOK party's executive bureau jointly finalized the socialist government's final positions on planned reforms to the country's social security and pension system.

Simitis said social insurance systems throughout the European Union were in trouble and Greece along with all other member-states worked toward a long-term solution.

"The reforming of the social security system, which begins today, will be the subject of a substantial political dialogue," Simitis said, adding, "during this dialogue we are open to receiving all proposals and a combination of measures that will be tabled".

He stressed that the government's proposal rejected the privatization of the system, supported the funding of the system by the employees, the employers and the state and the merging of the existing pension funds into larger units.

He added that the government's proposal also included provisions for pensioning employees after 40 years of payments to insurance funds, regardless of age, while there will be no increases in contributions to funds.

The new system, Simitis said, would establish regulations that apply to all workers without exceptions, thus abolishing inequalities the old system created among workers.

Simitis also stressed that the new system will be established in time, in phases to avoid any inequalities or problems that a sudden change of the system may create.

"In answering the question, whether we need interventions and changes to the social security system, we say yes. In answering the question, whether these changes are necessary now, we say yes. In answering the question, in what way will we complete this intervention, we say that the reform must be based on the principles of social justice, solidarity of generations and security and certainty that every citizen should have for his present and his future in a social state," Simitis said.

Initial reactions: Meanwhile, during the meeting workers and unionists staged a demonstration outside the government offices where the Inner Cabinet, in a joint meeting with the ruling PASOK party's executive bureau, was taking place.

Trade union and labor officials of the Panhellenic Workers' Struggle Front (PAME) -- a labor movement comprising workers affiliated with the Communist Party of Greece (KKE), the Democratic Social Movement (DHKKI) and other left-wing parties -- gathered outside the government headquarters at Maximos Mansion, where the joint meeting was taking place, in an unscheduled protest, chanting anti-government slogans such as "Rise up, the government is destroying social security".

Police were taking "discreet security measures" for the time being, police sources told ANA.

Late on Wednesday night, the country's two largest labor unions issued a joint statement blasting the planned reforms as arbitrary, piecemeal, anti-social and inefficient that did not tackle the root of the problem, and warning that they would not be accepted by workers and unions.

In the joint statement, General Confederation of Workers of Greece (GSEE) and Civil Servants' Supreme Administrative Council (ADEDY) presidents Christos Polyzogopoulos and Spyros Papaspyrou, respectively, said the "much-discussed government interventions on the social security system are beginning with the worst portents".

"The measures that will be brought before the Inner Cabinet are arbitrary, piecemeal, but chiefly anti-social and ineffective. Not only are such measures not acceptable, but the workers and trade unions en masse declare: They will not come to pass," the statement said.

Government choose mildest scenario of changes to social security system, labor minister says: The government chose the mildest scenario in changes to the social security/ insurance system, Labor Minister Tassos Giannitsis said on Thursday, adding that the government chose and will defend this scenario, all views, however, will be placed on "the dialogue table".

On the question of the implementation timetable of the dialogue, Giannitsis underlined that it will start immediately, but left open the issue of deadlines for governmental legislative action.

He stressed the need for measures to be taken now, but their implementation will take place gradually with the purpose of controlling deficits, without turmoil for insurance funds and with criteria of sensitivity for the insured.

Elaborating on the measures, Giannitsis said they would not apply for all those insured to be pensioned off by December 31, 2006.

He added that from the date of the law's ratification, all insured will have to be 65 years of age as a precondition for pensioning, while the possibility of pensioning after 40 years of work will be enacted for those who begun contributing to the system early.

Giannitsis said that favorable settlements regarding heavy duty and unsanitary work will not be abolished, but all professions subject to this category will be re-examined.

In addition, many insurance funds will be grouped together and eight major insurance funds will emerge from mergers.

Giannitsis further stressed that the government rejected proposals for the system's privatization and for an increase in contributions made.

Commenting on the reactions of trade unions, he said that those calling for nothing to change in the insurance system have no responsibility.

Opposition party reactions to social security system reforms: Opposition parties and trade unions reacted strongly to the proposed reforms to the social security and insurance system on Thursday, in the wake of a six-hour meeting where the Inner Cabinet and the ruling PASOK party's executive bureau jointly finalized proposals on the reforms.

The main opposition New Democracy (ND) party led the reactions against the planned reforms, calling on the government to respect the existing age limits for pensions.

ND leader Costas Karamanlis criticized Prime Minister Costas Simitis for his proposals, calling them "vague" and saying that the government did nothing over the past eight years to confront the problems of the system.

He said that his party would be against increases in age limits and contributions, stressing that the insurance system reforms should not be used as a pretext to cover government deficits.

Karamanlis also stressed that his party would conduct a dialogue with all those involved or affected by the reforms and will draft its own final proposal for reforms to the social security and insurance system.

Communist Party of Greece (KKE) leader Aleka Papariga, on her part, said that the measures, Simitis announced, "aim to deceive the Greek people and reverse reality".

"The deception will not be allowed to stand, to the degree it did in the past few years," she said, adding that the measures announced, would aid the large private insurance companies to become giants, while the employers' and the state's contributions to the system would be minimized, thus placing extra burdens on the workers.

"The workers should not participate in the dialogue and must fight a joint struggle to apply pressure and force demands on the government," she said.

On its part, the Coalition of the Left and Progress (Synaspismos) noted that the proposed changes would dramatically worsen the life of a great part of workers and insured, who would have to work more years and get lower pensions.

Synaspismos' representative called on the government to change its plans "otherwise a warlike climate would be created at the responsibility of the government".

Democratic Social Movement (DHKKI) leader Dimitris Tsovolas said that the reforms were no less than the "demolition" of the most basic social insurance rights of the Greek workers.

He added that the government with the collusion of the main opposition ND party conducted this “demolition”.

Meanwhile six ruling PASOK party cadres voiced their open opposition to the proposals announced by the government, as all six are members of trade union presidiums.

In reaction to the proposed measures, the General Confederation of the Workers' Unions of Greece (GSEE) presidium announced it was planning to table a proposal to the plenum for a 24-hour strike next Thursday.

Journalists' union opposes changes to the social security system: The Athens Journalists' Union (ESHEA) on Thursday called the measures, announced by the government on efforts to reform the social security system, "a heavy blow attempted against the social and pension rights of the Greek people".

The announcement also noted the "strong and deep concern (of the union) because of the overturning of established conditions and the abolition of the existing system".

Especially concerning the press, ESHEA's announcement noted that "a frontal attack against the system is underway with the abolition of sources of income for the insurance fund of journalists, which leads to the undermining of its viability and the abolition of the autonomy of the journalistic profession".

[02] Prime Minister to meet with President on Friday, sources say

Athens, 20/04/2001 (ANA)

The same sources said that discussions during the meeting would include the proposed reforms of the social security system.

Simitis is also expected to meet with Defense Minister Akis Tsohatzopoulos on Friday, a meeting that was planned before the Easter holidays.

During this meeting, the sources said, the two men are expected to discuss defense spending cuts and developments in talks over the social security system, as the defense minister was in France on Thursday, when the inner cabinet meeting took place.

[03] Greek Defense Minister says Turkey obliged to abandon policy of threats

PARIS, 20/04/2001 (ANA - O. Tsipira)

"Turkey is obliged, in the course of convergence with Europe, to proceed with certain adjustments and one of them is abandoning threats, the threat of the use of force and of illusions that one can forge ahead with barren denial," Tsohatzopoulos said following discussions with his French counterpart Alain Richard and European Affairs Minister Pierre Moscovici,

He also said that support given to Turkey by Greece for its course towards the European Union should ultimately have specific results, which are being sought in political relations, threats and claims against other countries.

Following his meeting with Moscovici, Tsohatzopoulos told Greek reporters France's position in relation to the Cyprus issue is "very clear", adding that as far as the French are concerned "accession of the Republic of Cyprus to the EU is a clear case with a secure future and an immediate prospect. The political solution is interesting. However, it cannot constitute a precondition for the accession of Cyprus."

Tsohatzopoulos said the accession of Cyprus should also provide a more favorable framework for a political solution in the future "and we should process this idea to enable us to achieve tangible new factors which are capable of contributing to this direction."

[04] Defense Minister and French counterpart discuss European security and defense

PARIS,20/04/2001 (ANA - O. Tsipira)

Tsohatzopoulos was on an official visit to Paris at the invitation of Richard.

On his part, Richard told reporters that they discussed common initiatives and common participation in Europe's defense, as well as bilateral cooperation at business and industrial level, adding that "I must say that it was a very satisfactory meeting for us, which proves the stability of relations between our two countries."

Tsohatzopoulos said one of the issues discussed was the creation of the European military force, on which there is absolute agreement with France that it should be ready by 2003.

He referred to the participation of NATO countries which are not European Union member-states, saying that "the participation framework secured and agreed by heads of state in Nice is a good basis for safeguarding the participation of all" and that "the utilization of NATO's potential for the European security and defense policy is also a mutually acceptable option for NATO and the EU."

Tsohatzopoulos said that, in this direction, no one has the right to prevent the implementation of this policy.

Regarding bilateral cooperation, Tsohatzopoulos said cooperation between the two countries can, in its own way, contribute in a supplementary manner to upgrading the EU's defense capacity and pointed out that the two countries can cooperate in the training, exchanging of information and technologies sectors.

[05] Orthodox, Catholic officials cover final details of pope's visit

Athens, 20/04/2001 (ANA)

The head of the Orthodox Church's welcoming committee, Metropolitan Daniel, clarified that Archbishop of Athens and All Greece Christodoulos will be present alongside the visiting pontiff on three occasions - the first during John Paul's visit to the Athens Archbishopric, followed by their joint appearance at the foot of the Acropolis at a spot where the Apostle Paul preached to the ancient Athenians. Finally, Christodoulos will visit the pope at the residence of the Vatican's representative in Athens the same evening, May 4.

The Metropolitan also noted that Christodoulos has not planned to attend a dinner given in the pope's honor by the Greek president.

According to reports, the Roman Catholic church has sent a circular to its 12 parishes in the greater Athens area requesting lists of the names of worshippers wishing to attend a mass officiated by the pontiff at the Athens indoor Olympic stadium, which seats 18,000 people. Security reasons were cited for request.

Meanwhile, the Greek government confirmed on Wednesday that Prime Minister Costas Simitis would also meet with John Paul II.

The Polish-born pope will arrive in Athens on the morning of May 4 aboard an Alitalia flight from Rome, with a small welcoming ceremony to be held at the airport. Afterwards, he will be officially received at the presidential mansion.

The pope was invited to the predominately Greek Orthodox country by President Kostis Stephanopoulos, and after the Vatican had publicly aired the pontiff's long-standing desire to visit Athens as part of a retracing of the Apostle Paul's journeys in Europe.

John Paul II's two-day trip will be the first by a Roman Catholic leader to the Modern Greek state. The Orthodox and Catholic churches split in 1056 after centuries of often-contentious relations.

[06] PASOK delegation in Mideast on Friday

Athens, 20/04/2001 (ANA)

The trip follows a brief visit to neighboring FYROM on Wednesday by PASOK Secretary Costas Skandalidis.

Other stops in North Africa, Europe, America and even faraway China, are planned as part of efforts to upgrade the party's foreign relations.

On Wednesday, Skandalidis and the other PASOK cadres met with Former Yugoslav Republic of Macedonia (FYROM) President Boris Trajkovski, Prime Minister Ljubco Georgievski, Social Democratic Union party leader Branco Crvenkovski and FYROM Albanian political leader Arben Tzaferi.

In Syria, the PASOK delegation will meet with ruling Baath party secretary Abpallah Al Ahmar and Syrian government vice-president Abd al-Halim ibn Said Khaddam, Antioch Patriarch Ignatios and representatives of the ethnic Greek community in the country.

In Lebanon, the delegation will meet with Lebanese President Emile Lahud as well as the leadership of the Lebanese Socialist Party, including its leader Walid Joumblatt.

[07] National Economy Minister says 2001 budget will be carried out normally and with no change

Athens, 20/04/2001 (ANA)

Papantoniou, who was speaking after his meeting with Prime Minister Costas Simitis, ruled out the possibility of tax measures being imposed and of additional cutbacks in expenditures being made since, as he said, the implementation of the budget is satisfactory.

The meeting with Simitis, including Deputy Finance Minister George Drys, focused on economic developments and the course of the Greek economy in light of the informal ECOFIN council meeting in Malmoe, Sweden.

Papantoniou further said the budget would be implemented on the basis of decisions, which have already been taken by Parliament in December.

[08] Papantoniou to euro zone meeting in Sweden

Athens, 20/04/2001 (ANA)

The European Union's economics ministers will then meet in-formally at the weekend, at the same venue.

The main items on the agenda are the EU's tax policy, enlargement and the world economic scene, the national economy ministry said in a statement on Thursday.

[09] Greece announces EU funds' monitoring committee

Athens, 20/04/2001 (ANA)

National Economy Deputy Minister Christos Pahtas, will head the committee with the ministry's general secretary for investments and development, Costas Theos, as vice-chairman.

The first official session of the committee, including 11 chairmen of business programs' monitoring committees, 13 regional secretaries and employers' and employees' representatives, is scheduled for April 23-24.

[10] EU releases Dr 20 bln for Greek telecoms program

Athens, 20/04/2001 (ANA)

The amount, which represents the EU's participation in the program, had been withheld since summer 1998 as Greece had failed to incorporate Community directives on liberalization of the telecoms sector into its national legislation.

The Commission told Transport and Communications Minister Christos Verelis that it was finally releasing the funds in recognition of progress made towards deregulation.

The Greek parliament in November 2000 voted through a bill allowing the liberalization of telecoms, and presidential decrees on the details of implementation are being prepared.

In addition, the government has awarded seven licenses for fixed-line wireless telecoms.

[11] Deloitte & Touche wins valuation of Olympic Airways

Athens, 20/04/2001 (ANA)

The national carrier is currently being privatized with several bidders preparing their offers.

The valuation is to be ready on April 30.

Deloitte & Touche Finance has acted in the past as a consultant to the European Union on the Greek airline, and is already familiar with the company's structure, finances and operations.

[12] Greek businessmen active in Germany hold contacts with officials in Xanthi

Athens, 20/04/2001 (ANA)

On the occasion of their stay in the region of Thrace, the businessmen participated in a meeting with agency officials at the Xanthi Chamber of Commerce, where they requested information on the taxation system applied in the country, incentives provided by the state for investment programs and support provided for businessmen by Greek economic ministries.

The Greek businessmen also requested accurate economic data on the thousands of industrial units operating in the prefectures of Xanthi, Rodopi and Evros, while positive results have been achieved on conditions of cooperation with businessmen in Xanthi where over 5,000 industries and handicraft businesses are operating.

[13] Greek stocks succumb to early profit taking

Athens, 20/04/2001 (ANA)

Traders said the market needed some correction after a five-day rally which pushed the general index 9.44 percent higher, with many stocks included in a new Morgan Stanley index rising as much as 19 percent over the same period.

The general index, however, managed to end above the 3,280 technical support level, to 3,285.96 points, off 0.91 percent. Turnover was a moderate 286.13 million euros, or 97.5 billion drachmas.

The FTSE/ASE 20 index for blue chip and heavy traded stocks ended 0.90 percent lower at 1,930.02 points, and the FTSE/ASE 40 index eased 0.26 percent to 380.39 points.

Sector indices ended as follows: Banks: 7,129.48 -1.11% Telecoms: 1,110.58 +0.04% Insurance: 1,465.38 -1.98% Investment: 1,179.54 -1.21% Construction: 1,496.78 -0.39% Industrials: 1,958.32 -1.28% Holding: 3,699.52 -1.38% Base metals: 1,007.49 -0.45% Minerals: 1,087.17 -0.68% Publishing: 1,012.49 -0.49% Textiles: 1,183.75 -0.65% Retailing: 1,164.42 -1.24% IT: 1,090.99 +0.25% IT software: 1,015.46 -0.35% Wholesale: 973.29 -1.08% Food and Beverage: 962.79 -2.19%

The parallel market index for smaller capitalization stocks ended at 328.29 points, off 0.78 percent.

Broadly, decliners led advancers by 213 to 108 with another 36 issues unchanged.

Despec, Xifias, Kambas, Stabilton, Desmos, Esha, Eurodrip, Moda Bagno, Alter TV and Hellenic Sugar scored the biggest percentage gains, while VIS, Crete Building, Daios Plastics, Interamerican Life, Hellatex, Plias, Micromedia, ANEK Lines, Ippotour and European Credit suffered the heaviest losses.

Hellenic Telecoms, National Bank, Alpha Bank, Panafon and Titan Cement were the most heavily traded stocks.

Leading shares' closing prices (in euros): National Bank: 44.00 Alpha Bank: 32.70 Commercial Bank: 55.22 Egnatia Bank: 5.72 Eurobank: 18.22 Piraeus Bank: 14.86 Lambrakis Press: 14.10 Altec: 7.04 Intrasoft: 11.98 Technodomiki: 7.30 Titan Cement (c): 42.88 Hellenic Telecoms: 16.62 Panafon: 7.38 Hellenic Petroleum: 9.66 Attica Enterprises: 8.76 Intracom: 21.54 Mytilineos: 8.30 Minoan Lines: 4.84 Viohalco: 10.88 Coca Cola: 16.58

Bond prices drop again in moderate trade: Bond prices in the domestic secondary market on Thursday finished lower for a third straight session in moderate trade.

The Greek benchmark 10-year bond showed a yield of 5.47 percent from 5.48 percent a day earlier.

The yield spread over German bunds was 52 basis points, the same as in the session before.

Turnover through the central bank's electronic system totalled 890 million euros (303 billion drachmas) from 1.1 billion euros (395 billion drachmas) a trading day earlier.

Sell orders accounted for the bulk of turnover.

Equity futures end down, tracking Athens bourse: Equity futures traded on the Athens Derivatives Exchange finished lower on Thursday, in line with the bourse indices on which they are based, traders said.

The FTSE/ASE 20 index closed 0.90 percent down, and the FTSE/ASE 40 ended 0.26 percent lower.

Traded were 12,951 contracts on turnover of 88.5 million euros.

[14] Anniversary of Lord Byron's death commemorated

Athens, 20/04/2001 (ANA)

"To Byron of Greece and the world" read the ribbon on the wreath, placed by the Athens-based "Committee for the Preservation of Lord Byron's Heritage". A ceremony at Athens Bar Association followed, where the committee's presidium along with the president of the Greek Byron Society proposed that the anniversary of Lord Byron's death be designated by the Greek state as a "Day of Philhellenism and International Solidarity".

George Gordon Noel Byron, 6th Baron Byron, was born on Jan. 22, 1788 in London and died on April 19, 1824 in Messolonghi, western Greece. He died of fever and exposure while engaged in the Greek struggle for independence from Ottoman rule.

[15] Greek Soccer Federation accepts Turkish proposal for discussions on joint hosting of Euro 2008 championship

Athens, 20/04/2001 (ANA)

[16] Cyprus protests Turkish infringements of Nicosia FIR

NICOSIA, 20/04/2001 (ANA - G. Leonidas)

In a letter to the United Nations' general secretary, Cyprus' permanent representative to the UN, Sotos Zakhaios, called for an end to such actions, which he noted violate international law and Security Council resolutions regarding the island republic.

Roughly one-third of Cyprus' territory is occupied by Turkish troops following an invasion in July 1974.

[17] Cyprus government responds to Turkish foreign minister's threats

Ôhe threats made by Turkish Foreign Minister Ismail Cem, that Cyprus' accession to the European Union would be a "Pyrrhic victory", constitute Ankara's "trump card" in its effort to obstruct the Republic's accession, Cyprus Foreign Minister Ioannis Kasoulides said here on Thursday.

Commenting on Cem's statements, made before his departure after an illegal visit to the Turkish-occupied areas of the island on Wednesday, Kasoulides described them as "a kind of threat and intimidation" against the Cyprus government and the EU itself that would not be accepted.

Meanwhile, replying to a question during a briefing in Brussels on Thursday, a European Commission spokesman said he was not aware of Cem's statements but clarified that the 15-member organization remains firm in its decision taken during the Helsinki summit, held in December 1999, that a settlement in Cyprus is not a precondition for accession.

On his part Cyprus government spokesman Michalis Papapetrou described the Turkish minister's statements as "condemnable and unacceptable", expressing the view that they reflect the Turkish side's isolation from the international community due to its intransigent positions both on the Cyprus Republic's EU accession and in the effort to reach a settlement in Cyprus.

Ankara was given a candidate state status during the Helsinki summit, but instead of becoming more cooperative it has been backing Turkish Cypriot leader Rauf Denktash in his negative stance during the UN-led Cyprus peace effort and in his refusal to accept an invitation by the Cyprus president to nominate representatives in the official team negotiating accession since 1998.

After five rounds of peace talks, Denktash said they are "waste of time" and that he would no longer participate unless the illegal regime in the areas of Cyprus occupied by Turkey since 1974 is recognized.

"There is ample time until the second half of 2002 to find a solution of the Cyprus problem based on UN resolutions, otherwise the Helsinki decision will apply and Cyprus will join the EU," the Republic's foreign minister said, referring to the date new members are expected to join the Union.

"We will not base our strategic objectives on threats and intimidation", he said, expressing the view that the EU will also stick by its decisions and assuring of the government's determination to proceed with the accession course.

Commenting on Cem's view that Cyprus' accession would bring new suffering to the Greek and Turkish Cypriot communities, Kasoulides called on the Turkish official not to speak on behalf of the Greek Cypriots.

"Regarding the Turkish Cypriots, I am glad he realizes the harm both Ankara and Denktash are causing them by placing obstacles to the effort for a mutually acceptable settlement that would lead us into the EU united," he said, pointing out this would also rid Turkish Cypriots of their economic dependency on Turkey.

Kasoulides was speaking after a meeting here with his Czech counterpart Jan Kavan, who said he does not perceive Cem's statements as "a real threat" to either Cyprus or the other candidates for accession.

"I am convinced that the EU has made it clear and will stick to its principle that the Republic of Cyprus can join once it fulfills all the criteria and that the solution of the Cyprus question is not a precondition for accession," Kavan said replying to questions.

The Czech minister said he regularly meets EU politicians and officials and he never came across "any hint of a doubt or reconsideration of this basic principle."

Recalling that his country had welcomed Helsinki's offer to Turkey, he said "I think it was a very important step from the EU and I am sure that Turkey understands the importance of this step and I would be surprised if they would take steps which would endanger the validity and the continuation of the offer."

[18] Clerides meets Mubarak

CAIRO, 20/04/2001 (CNA/ANA)

The meeting lasted about 30 minutes. No statements were made and no information was made available on the talks between the two leaders.

Clerides, who is on a weeklong private visit to Egypt, was flown to Sharm-el-Sheikh aboard an Egyptian air force plane, with which he returned to Cairo, accompanied by the ambassador of Cyprus to Egypt Demetris Droussiotis.

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