Athens News Agency: Daily News Bulletin in English, 01-12-04

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

CONTENTS

[01] Greece insists on Nice summit decisions for EU army

[02] PM addresses PASOK's Executive Bureau

[03] Greek FM and US counterpart discuss NATO-Russia relations

[04] FM cancels Bucharest visit for OSCE meeting due to illness

[05] WEU's Assembly to probe international terrorism

[06] Foreign ministry delegation visits jailed 'plane-spotters'

[07] Deputy FM meets Uzbekistan General Consul, Australian Ambassador

[08] Interior minister chairs meeting on agricultural issues

[09] Opposition rules out debate on changing election law

[10] Balkan city mayors open meeting in Thessaloniki

[11] Stephanopoulos briefed on Athens mayor's new party

[12] Central bank chief sees decline in inflation to 2.5 pct in 2002

[13] Govt to keep markets to agreements on euro conversions

[14] Gov't on OA sale process

[15] Greek PMI falls to 49.2 in November

[16] Four bidders offer new premises for ministries

[17] EU Council of Labour Ministers discuss social insurance

[18] Greek EU commissioner expresses regret over employment issues

[19] Closure of Axon Airlines to cost firm up to Dr 8.4 billion

[20] Greek stocks end off lows on Monday

[21] Olympic flame heads for Salt Lake City; emphasis on security

[22] Byzantine Museum exhibition on December 4-7

[23] President Clerides ready for all eventualities

[01] Greece insists on Nice summit decisions for EU army

Athens, 04/12/2001 (ANA)

The comments follow a weekend visit to Athens by Belgian Prime Minister Guy Verhofstadt -- whose country holds the EU rotating presidency – and his talks with Greek PM Costas Simitis on the complex issue.

Government spokesman Christos Protopappas responded to a question at his daily press briefing regarding recent statements by Turkish Prime Minister Bulent Ecevit, and following the latter's talks with US and British officials in Ankara.

According to wire reports, Ecevit said on Sunday that most of Turkey's 'rightful expectations' had been met after British and US diplomats negotiated with the Turks last week.

On his part, Protopappas said it wasn’t only important what the United States and Turkey agreed to with an European member, but what decisions the entire EU will take.

On Saturday, the Belgian premier denied claims that Turkey has been assured of the Aegean Sea and Cyprus’ exclusion from any future European Union force’s operational responsibility

Meanwhile press reports in New York quoted a press release from Turkish Prime Minister Bulent Ecevit's office said that an agreement has been reached allowing cooperation between NATO and the European Union, stressing that Turkish officials made no comment. However, whatever the details may be of the agreement ending the deadlock concerning the creation of the European security force, the agreement shall have to be ratified by the EU's 15 member-states.

British and American diplomats held three meetings in Ankara in past months to find a solution, while the issue is expected to be included in the agenda of U.S. Secretary of State Colin Powell's visit to Ankara this week.

[02] PM addresses PASOK's Executive Bureau

Athens, 04/12/2001 (ANA)

According to reports, PASOK's tactic will be based on two points. Firstly, the highlighting of the government's work and, secondly, tough confrontation with the main opposition New Democracy party.

The reports further said that Simitis pointed out that the government's work and policy will constitute the spearhead, because the results of the effort are what interest the people.

Simitis also referred to the issue of transparency and the financing of parties, saying that having a new settlement on the finances of parties is a government pursuit and that this issue is being discussed by the inter-party committee.

He further said that it is the government's obligation to present all evidence that shows how sincere or insincere are those who are struggling with the argument of vested interests.

[03] Greek FM and US counterpart discuss NATO-Russia relations

Athens, 04/12/2001 (ANA)

This and other issues on the agenda of a meeting of NATO foreign ministers in Brussels on Thursday, the same day as Russian President Vladimir Putin begins an official visit to Greece, were discussed by the two men on Sunday night, the sources said.

Apart from the upcoming NATO meeting, Papandreou and Powell also discussed developments in the Balkans, the progress of political reforms in the Former Yugoslav Republic of Macedonia (FYROM), NATO's role in the Balkans, NATO enlargement and the issues that will be discussed at a NATO summit in Prague in early 2002.

Another topic covered during their conversation were Greek-Turkish relations and the Cyprus problem, in view of a planned visit by the US Secretary of State to Ankara.

According to the same sources, a series of bilateral agreements between Athens and Moscow are to be signed during Putin's visit, dealing with Greek-Russian cooperation in the areas of justice, air transport, the founding of cultural centers, policing, shipping, fuel and energy.

[04] FM cancels Bucharest visit for OSCE meeting due to illness

Athens, 04/12/2001 (ANA)

Foreign ministry spokesman Panayotis Beglitis announced that Greece would be represented at Monday's OSCE conference by foreign ministry secretary general George Savvaidis.

[05] WEU's Assembly to probe international terrorism

PARIS, 04/12/2001 (ANA - Ô. Tsipira)

Greece is represented by an 11-member delegation, headed by Deputy Theodoros Pangalos who is expected in Paris on Wednesday.

[06] Foreign ministry delegation visits jailed 'plane-spotters'

Athens, 04/12/2001 (ANA)

Foreign ministry spokesman Panos Beglitis said that a delegation including the ministry's Development Cooperation department general director Alexandros Rondos and the director of foreign deputy minister Yannis Magriotis' diplomatic office Ms. Athanasiadou had visited the 12 Britons, including one woman, and two Dutchmen in prison in Korydallos and Nafplio.

The 14 have said they were on a "plane-spotting" vacation when arrested on November 8 outside a military airbase near Kalamata, southwestern Greece. The group had also been briefly detained three days earlier at an airbase north of Athens, again for photographing military facilities.

The visit was made in the framework of the Greek foreign ministry's handling of the case given that the issue has attracted political attention in Britain and was being given wide coverage in the British press, Beglitis said.

He said the delegation ascertained the "good conditions" of the "European citizens' incarceration", and expressed hope for a speedy and positive conclusion of the case.

Beglitis explained that the foreign ministry was involved in the issue "to the degree that it concerns Greek-British bilateral relations", but with all due respect to the independent role of the country's justice system.

The case was also discussed, inter alia, during a recent telephone conversation between foreign minister George Papandreou and British counterpart Jack Straw.

Responding to criticism from a UK paper, government spokes-man Christos Protopappas defended the government's policy on this issue and said it could not interfere with the work of Greek justice.

[07] Deputy FM meets Uzbekistan General Consul, Australian Ambassador

Athens, 04/12/2001 (ANA)

During the talks with the General Consul of Uzbekistan, Toursounov, issues of bilateral cooperation were discussed, while particular mention was made to the very good cultural relations between the two countries.

Australian Ambassador Hume also paid a courtesy call on Magriotis and discussed issues of bilateral issues as well as issues concerning the Greek community in Australia.

[08] Interior minister chairs meeting on agricultural issues

Athens, 04/12/2001 (ANA)

Taking part in the meeting were Agriculture Minister George Drys, Agriculture Deputy Minister Vangelis Argyris, Public Order Minister Michalis Chrisohoidis, Public Order Ministry General Secretary Dimitris Efstathiadis, Press and Mass Media Minister Christos Protopappas, Economy Deputy Minister George Floridis and Agricultural Bank of Greece Governor Petros Lambrou and other senior officials.

No statements were made after the meeting. According to sources, however, a decision was reached for the government to brief farmers this weekend and convince them that their income this year will not be lower compared to last year which was considered the best in ten years.

The ministers called on Lambrou to speed up procedures for the payment of subsidies.

The government consequently believes that the farmers will not resort to mobilisations.

[09] Opposition rules out debate on changing election law

Athens, 04/12/2001 (ANA)

In statements afterwards, Skandalidis expressed his belief that the political system should be re-assessed "starting from scratch."

Whether this debate ultimately led to changes would be deter-mined in due course, he added, "but I believe that we cannot use the same process, which has reached its limits, for these elections, the next elections and the elections after that."

ND spokesman Theodoros Roussopoulos said his party ruled out changes to electoral law and asked for electoral rolls to be checked and published promptly, transparency and constant monitoring of naturalisations.

[10] Balkan city mayors open meeting in Thessaloniki

Athens, 04/12/2001 (ANA)

Twenty-nine mayors of major Balkan cities will convene on Tuesday with the purpose of implementing inter-Balkan inter-municipal cooperation through the creation of a Major Balkan City Network. The proposal for the creation of a Major Balkan City Network had been made last year by Papageorgopoulos during the first meeting.

Papageorgopoulos, welcoming his colleagues from neighbouring countries, said the first action axes will be set at this year's meeting to enable all that had been agreed last year to be transformed into substantive and effective work for citizens.

[11] Stephanopoulos briefed on Athens mayor's new party

Athens, 04/12/2001 (ANA)

The meeting commenced Avramopoulos' scheduled contacts with various political leaders and cadres.

Afterwards, the Athens mayor said he would request a meeting with all of the country's major political leaders.

Asked about the possibility of election law changes, Avramopoulos simply noted that "we're not afraid of any election law".

[12] Central bank chief sees decline in inflation to 2.5 pct in 2002

Athens, 04/12/2001 (ANA)

Inflation on a year-on-year basis would fall below 3.0 percent in November and December, Papademos told a news conference.

He was presenting the central bank's interim monetary policy report submitted to parliament earlier in the day.

Papademos attributed the anticipated domestic decline in the rate of inflation to a slowdown in global demand combined with a drop in the price of imports.

The slump in global and domestic demand was a further reason for companies to maintain a policy of price restraint, he added.

In forging wage agreements for 2002, employers and unions should take into account declining inflation; a rise in workers' disposable income of about 1.0 percent stemming from recently announced tax breaks; and labour costs by product unit, the highest in the euro zone, Papademos said.

At the same time, growth was likely to nose down to 3.5 percent in 2002 from around 4.0 percent in 2001 and 4.5 in 2000, although due to an uncertain global outlook for next year, forecasts were difficult, the central bank governor said.

He noted that the current growth rate was more than double the estimated average in the 12-member euro zone, of which Greece is a member.

The central bank's report also said that credit to households had risen sharply in September with the balance of loans representing 30.7 percent of total corporate and household banking loans; up from 27.8 percent in the same period a year earlier.

The average annual rate of increase of mortgages was 35.3 percent in September against 29.9 percent in the last quarter of 2000, the report said.

Consumer loans grew by 47.2 percent in September from 36.9 percent in the last quarter of 2000, it added.

[13] Govt to keep markets to agreements on euro conversions

Athens, 04/12/2001 (ANA)

Protopappas was responding to questions regarding incidents of profiteering linked to the euro.

The spokesman said the agreements called for prices to be rounded down rather than up so the switch would not burden consumers.

Everyone had a responsibility to protect Greek consumers, Protopappas said, and warned that the development ministry would be making spot checks to keep tabs on the situation.

[14] Gov't on OA sale process

Athens, 04/12/2001 (ANA)

In commenting on the future of debt-plagued OA, government spokesman Christos Protopappas simply noted that an offer by the runner-up, the Australian-US firm Integrated Airlines Solutions (IAS), will be carefully examined. He added that if the IAS offer is also rejected then other "moves" would be taken, while declining to comment on the details.

He also reiterated statements by Prime Minister Costas Simitis over the weekend, namely, that the government wants a national carrier to exist but not at the expense of taxpayers.

Transport Minister Christos Verelis on Saturday said any "new schemes vying for OA should be very robust, and must be comprised of several business alliances ... Until Dec. 23 discussions with the Australians (i.e. IAS) will have concluded. If these negotiations don't produce results, then we're faced with all possible outcomes ..." Verelis warned in reference to troubled OA's future.

[15] Greek PMI falls to 49.2 in November

Athens, 04/12/2001 (ANA)

The index fell to 49.2 points in November from 50.5 in October, with readings below 50 marking a contraction in the sector.

The PMI survey is conducted by NTC Research (a UK company) in cooperation with Hellenic Supplies Institute.

The contraction of the manufacturing sector reflected mainly a slight decline in new orders in November following a global economic slowdown.

Despite proof that an international negative climate has undermined total demand for Greek manufacturing products, export orders continued rising in November, although at the slowest growth rate in the last two years, the survey said.

The survey also showed that a significant number of Greek businesses have cut their workforce in November on fears over short-term economic prospects, with total workforce in the country's manufacturing sector shrinking slightly in the month.

The PMI is a composite index designed to reflect a general picture of conditions in the manufacturing sector.

[16] Four bidders offer new premises for ministries

Athens, 04/12/2001 (ANA)

The deadline for bids was November 30 in the tender called by the Public Real Estate Company that is budgeted at 36.5 billion drachmas.

The bidding groups for the media ministry deal were Hellenic Technodomiki, and a consortium of Themeliodomi SA with Entechnos and Anastilotiki.

Bidding for the education ministry project were Axon, and a group comprising Kaminos, Versa, Dimitrakopoulos and Bramis.

The tender is part of a 340 billion-drachma government program to rehouse 13 ministries and other state bodies.

[17] EU Council of Labour Ministers discuss social insurance

BRUSSELS, 04/12/2001 (ANA - G. Zitouniati)

The Council is seeking a balance between the common course of the EU-member countries on social insurance systems and the autonomy of each member to handle its own particularities.

The Council, following an intervention by the Greek minister, decided that nationals of third countries who reside permanently and are insured in EU countries should be included in the relevant regulation (1408/71), thus enjoying equal treatment with EU citizens.

On employment, Reppas said that the EU should take measures to combat poverty and social exclusion in 2002.

Speaking on the quality of labour, Reppas said "our aim should not only be to create more jobs but also better working conditions.

The Council further decided to proclaim 2003, during the Greek EU presidency, as "European year for persons with special needs".

[18] Greek EU commissioner expresses regret over employment issues

BRUSSELS, 04/12/2001 (ANA - B. Demiris)

In a statement after a meeting of the EU's Council of Labour Ministers which ratified the "2001-2002 package on employment", Diamantopoulou said that with the stance shown by member-states the target set for full employment in the EU by 2010, with an interim assessment of the situation in 2005, is in danger of turning into "an examination for the proclamation of mediocrity."

The "package" examines problems faced by member-states in combatting unemployment and recommendations are made to them to handle it without, however, the obligation of member-states to fulfill specific targets being included.

Diamantopoulou said the European Commission intends to propose once again to the Council the taking of a decision on the enactment of national targets on issues regarding the promotion of employment and the combatting of unemployment.

[19] Closure of Axon Airlines to cost firm up to Dr 8.4 billion

Athens, 04/12/2001 (ANA)

Axon Airlines, until recently the frontrunner in a tender to privatize Olympic Airways, announced on Friday that it would cease operations due to a slump in the airline industry after terrorist attacks in the US on September 11 deterred the public from air travel.

The Athens bourse contacted Axon Holdings, which has shareholders' equity of 40.5 billion drachmas, asking for a statement on the repercussion of the closure on the group.

Axon also said on Monday that the non-group shareholders of the airline had undertaken to foot their bill of about 12 billion drachmas of total losses.

In addition, the group would arrange for five years an annual offsetting of losses from the closure with group profits in the form of a provision on the balance sheet.

At the same time, the privately owned airline did not rule out a resumption of operations in the future if conditions in the industry improved, management said.

"The global crisis in air transportation that has hit all sector companies after the September 11 terrorist attacks in the US has deteriorated rapidly with a spectacular rise in losses. Recovery is not discernible in the near future," the company said on Friday.

"This radical, fundamental upheaval in market conditions has annulled planning and led us to taking the unpleasant decision of halting the company's operations," it added.

However, should international and domestic conditions improve, then Axon would consider a resumption of operations, making use of the investments it has made since 1999 in a fleet of modern aircraft and fully trained staff.

Also on Monday, the main opposition New Democracy party said that the repercussions of the airline's closure constituted a financial and political scandal.

Naming Axon the frontrunner in the sale of Olympic Airways had misled small-scale retail investors into buying stock in the company, driving its share price up to 4.20 euros from 1.67 euros before the breakdown of talks earlier in the autumn, the party said.

[20] Greek stocks end off lows on Monday

Athens, 04/12/2001 (ANA)

The general index ended 0.53 percent lower at 2,679.68 points, with turnover a moderate 43.6 billion drachmas or 128 million euros.

Traders said a negative climate in international markets, news that AXON Airlines was canceling its operations and lack of liquidity discouraged sentiment in the Greek bourse.

The Textiles and Publication sectors suffered the heaviest percentage losses (3.52 percent and 3.25 percent, respectively), while the Cement, Telecoms and Banks sectors scored the biggest percentage gains.

The FTSE/ASE 20 index for blue chip stocks fell 0.03 percent, the FTSE/ASE MID 40 index dropped 1.74 percent and the FTSE/ASE SmallCap 80 index ended 2.63 percent lower.

AXON Airlines' shares lost 17.93 percent.

Broadly, decliners led advancers by 310 to 29 with another 18 issues unchanged.

The most heavily traded shares were Intracom Construction, Hellenic Telecommunications Organization, Alpha Bank, Intracom and National Bank of Greece.

Bond Market Close: Prices rise in brisk trade: Bond prices in the domestic secondary market on Monday finished higher in heavy trade again focusing on ten-year paper.

The Greek benchmark 10-year bond showed a yield of 4.94 percent, and the yield spread over German bunds was 43 basis points.

Turnover through the central bank's electronic system totalled 3.0 billion euros.

Buy orders accounted for the bulk of turnover.

Derivatives Market Close: Equity futures end in the red: Equity futures on the Athens Derivatives Exchange on Monday fell sharply in higher turnover although players showed interest in contracts on National Bank of Greece, traders said.

Changing hands were 6,062 contracts on turnover of 37.9 million euros.

The underlying FTSE/ASE-20 index for heavily traded stocks and blue chips shed 0.03 percent; and the underlying FTSE/ASE-40 for medium capitalization stocks lost 1.74 percent.

[21] Olympic flame heads for Salt Lake City; emphasis on security

Athens, 04/12/2001 (ANA)

The all-marble U-shaped stadium, a reconstructed ancient venue that hosted the first modern Olympics in 1896, served as the backdrop for the ceremony in a chilly Greek capital.

The event was attended by a large delegation from Utah's capital -- including Native Americans in traditional dress -- Hellenic Olympic Committee (EOE) and Athens 2004 organizing committee (ATHOC) officials led by ATHOC chief Gianna Angelopoulos-Daskalaki, several government ministers and the US ambassador to Athens.

"The level of security for Salt Lake City will be the highest in Olympic history for a Winter Games, because President George Bush is absolutely committed to providing full-proof security," Salt Lake City organizing committee president Mitt Romney said afterwards.

Romney emphasized that security plans were most definitely changed and stepped up following the Sept. 11 terrorist attacks in the United States.

"Everything has changed," he said, adding that flights will be banned around the Salt Lake City area during the holding of key events for the 2002 Winter Games in February, among others.

"You can never do security good enough. After Sept. 11 you can never be satisfied ... We're thinking of (emergency) contingencies we have never thought about ... it's a lesson for the United States, it's a lesson for Greece," US envoy Thomas Miller later said at a reception hosted at his official residence.

The US ambassador added that counter-terrorism cooperation between Athens and Washington was the best he has personally witnessed going back to 1985.

"There is a lot of hard work going on, a lot of shoe leather is being worn-out," he said.

The Olympic flame was lit in ancient Olympia, southwest of Athens, last month before being brought to the Greek capital in a now customary torch relay.

Two and a half years after Salt Lake City the Olympic flame will be re-lit for Athens and the 2004 Summer Games.

[22] Byzantine Museum exhibition on December 4-7

Athens, 04/12/2001 (ANA)

The same applies to internet users at the website tour-bot.ics.forth.gr. The exhibition is taking place in the framework of the third and last pilot implementation of the TOURBOT program, which started in January 2000.

[23] President Clerides ready for all eventualities

NICOSIA, 04/12/2001 (CNA/ANA)

"The President has made the appropriate preparatory work to be in a position to tackle any eventuality," his spokesman Michalis Papapetrou has said.

He said the president is ready to face various scenarios, including dealing with "a totally negative Denktash to a constructive Denktash or even one pretending to be constructive in his approach."

President Clerides would be ready to give answers there and then to questions, proposals or ideas Denktash might put forward and decide on the spot whether he needs to consult his aides before replying.

Clerides is expected to outline the issues to be discussed as part of the ongoing UN effort for a comprehensive settlement, which started on the basis of UN Security Council resolution 1250.

Neither Clerides nor Denktash are seeing de Soto prior to the meeting, contrary to initial information to that effect.

The UN top envoy for Cyprus has chaired proximity talks between Clerides and Denktash from December 1999 to November last year, when Denktash, backed by Ankara, withdrew from them.

Political observers believe that Denktash's invitation to Clerides is probably a tactical move to divert the attention of the international community from his rejection of a UN invitation to return to the negotiating table.

However, if a letter Denktash sent to Kofi Annan in mid November is anything to go by, prospects for a successful outcome of tomorrow's meeting look rather gloomy.

Denktash reiterated his long standing position for the establishment of two separate states in Cyprus and a halt to the island's European Union accession course, maintaining that "a new partnership of two states" should emerge from any peace negotiations that would ensure a priori "the equal status of the two sides."

The UN is making arrangements for media coverage of the event, which will take place at the residence of the acting special representative of the Secretary General in Cyprus, Zbigniew Wlosowicz.

Tuesday's meeting has drawn increased interest on the part of the media, local and overseas. A number of news organizations, including the BBC World Service, have dispatched special correspondents to cover the event.

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