Athens News Agency: Daily News Bulletin in English, 02-01-21

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

CONTENTS

[01] Obstacles don't negate need for structural changes, finance minister says after merger collapse

[02] Simitis says forthcoming local elections a decisive political battle

[03] PASOK Central Committee conference on local elections ends

[04] PM and Tsohatzopoulos talk on sidelines of central committee meeting

[05] Labor minister discusses pensions at EU meeting

[06] Coalition leader on October local elections

[07] Laliotis comments on 'Ta Nea' report on Mayo Corp; ND responds

[08] Terrorism should be made nat'l priority, Papathemelis says

[09] Australian PM supports return of Parthenon Marbles to Greece

[10] ATHOC head visits Irakleio during four-day tour of Crete

[11] Stolen radiography device a health hazard, Atomic Energy Committee warns

[12] Digital Minoan ship soon to set sail in cyberspace

[13] Laliotis questions court decision to drop action over killer building

[14] Greek lawyer files case against 'unconstitutional' euro with CoS

[15] Egypt supports Cyprus struggle for a settlement

[01] Obstacles don't negate need for structural changes, finance minister says after merger collapse

Athens, 21/01/2002 (ANA)

Christodoulakis said that when the planned merger was announced last November, "it was considered a positive development for the Greek economy as it expressed the strategy of creating large Greek enterprises with a strong European presence, size and orientation".

But problems arose in the course of materialization of the merger plan by the two banks' administrations, which problems "unfortunately obstructed the successful completion of the venture," the minister added.

"However, the obstacles and difficulties in no way negate the necessity for structural changes, denationalizations and rendering strong the Greek enterprises in the banking as well as the other sectors of economic activity," he added.

Christodoulakis said the government had created the appropriate institutional framework and incentives for the advancement of this strategy, particularly following the successful introduction of the euro and the development in the structural changes throughout the entire EU.

The collapse of the planned merger was formally announced at noon on Saturday by the national Bank of Greece, which said that Alpha Bank insisted on a "radical divergence from what had been agreed and jointly announced".

National bank said it was breaking off negotiations and the merger process with Alpha Bank, claiming that it was forced to make this decision because of an inability to make substantial further progress in the course of negotiations for implementing the merger.

National Bank said its obligation to the Greek public and foreign investors was to settle the matter, since there appeared to be no prospect of a successful outcome.

"The Bank's management has decided to stop the merger process, out of respect for its 160-year history and contribution to the Greek economy and acting on the interests of its shareholders, staff and customers," the announcement added.

National said it had not abandoned plans to create "domestic financial institutions with strong European prospects and the means to carry out their tasks" but said that its recent successful performance were a guarantee of its continued dominance in domestic markets and its further expansion abroad.

An announcement released by Alpha on Saturday afternoon confirmed the end of efforts to pull off the mega-merger that would have created a bank capable of competing in the eurozone.

Alpha's management said the two sides had found it impossible to reach an agreement on how the new bank would be run that was based on "purely private-sector financial criteria and an equal footing between the two sides," two points which it described as fundamental to the initial agreement for a "merger between equals".

Alpha Bank and National Bank of Greece, both blue chips on the Athens Stock Exchange and the two largest commercial banks in the country, had announced a merger plan in November 1 last year. Had it gone ahead, the merger would have created a powerful Greek bank whose size would far outstrip any of its domestic competitors and could potentially become a leader in the region's banking market.

Speaking to ANA on the sidelines of a ruling PASOK central committee meeting on Saturday, top government officials assured that National Bank governor Theodoros Karatzas had not been asked to resign, adding that there was no problem with the way National Bank and handled the entire merger attempt.

Development minister Akis Tsohatzopoulos said that mergers in the economy were a necessary process, adding that restructuring was necessary at all levels.

In a statement late Saturday, the union of National Bank employees said that the collapse of the merger would not have repercussions on the bank's course and planning.

"The venture of creating a large, robust Greek bank, which the National Bank employees and their union believed in and supported, unfortunately did not come to pass" the statement said, adding that there would be no repercussions on National Bank's course and planning and that the bank "has a future, choices, and a role to play".

The employees' union further placed its full support behind the bank's governor, Karatzas, noting that the National Bank's administration thought up and attempted to create a large European competitive bank, as its enlargement and development was a common vision shared by the employees and administration alike, and adding that National Bank, under Karatzas' administration, and its employees and employees' union, "have a duty to keep alive the vision and prospect of such a bank".

In a reaction late Saturday on the collapse of the merger, main opposition New Democracy party (ND) press spokesman Theodoros Roussopoulos called for Karatzas' resignation, and in the event that the National Bank governor did not resign, then "the prime minister must remove him (from the post) immediately".

Roussopoulos said that immediately after the plans for the merger had been announced, ND had "with a sense of responsibility" pointed out the "substantial difficulties, and also the risks" it saw in the "course towards completion of the venture".

Conversely, he added, the government had once again "displayed its irresponsibility, attempting at the time to politicize the issue" for political gain.

"Why are ministers and the prime minister, who were so vocal at the time, now maintaining a guilty silence?" Roussopoulos wondered, accusing the government of being unable to carry out the structural changes.

Replying to press questions on Sunday, government spokesman Christos Protopapas said it was the government's assessment that the collapse of the merger plan would not create a negative climate for the economy.

Asked if there would be wider repercussions, both political and economic, from the collapse, Protopapas replied that when such major business decisions were attempted "it is logical that they will come up against obstacles, this happens all over the world".

However, he added, a negative climate was not created in general in the economy "because the economy is founded on firm foundations, because a very positive framework has been created, which will help the enterprises find their own way".

[02] Simitis says forthcoming local elections a decisive political battle

Athens, 21/01/2002 (ANA)

The result would not be a referendum as many claim, Simitis added to the committee members, as they convened for the second day to discuss strategy in the upcoming local elections.

The prime minister said the ruling party would work toward rallying the forces of the wider progressive area, both on a central and local level, and put together a proposal for victory and development for local communities.

Two very different proposals for local government would be judged at the next elections, Simitis stressed, one progressive and the other conservative.

The first was local government that was active, creative and wanted to improve local communities and give more opportunities to citizens, while the other wanted local government to serve party political and personal ends.

The prime minister also stressed that the choice of people that would represent this creative local government was of the utmost importance.

"These people must have the ability to take advantage of the many opportunities that exist to improve conditions in each municipality and prefecture," he said.

[03] PASOK Central Committee conference on local elections ends

Athens, 21/01/2002 (ANA)

Summing up the Central Committee's message to local governments in his closing speech, PASOK party secretary Costas Laliotis said this was linked to strategies for democratic cooperation, ballot sheets that were open to voters and local communities and which would lead to victory.

The second message was that 21st century Greece was inseparably linked with the fates of its regions, prefectures and municipalities and had to acquire its own local government networks.

Earlier the committee had been addressed by Culture Minister Evangelos Venizelos, who analyzed the repercussions of recent reforms to the Constitution for local government institutions. He said there should be a debate within PASOK on the role of local government in the new conditions after the current phase of talking about candidates and strategies was over.

Transport Minister Christos Verelis underlined that Greece faced many serious hurdles leading up to 2004, including the local elections, Cyprus' EU accession and the Olympic Games to be held in Athens.

He stressed that the party should not repeat its poor performance in the local elections of 1998, which had caused serious problems within its ranks, and particularly stressed the importance of fielding the right candidate in Athens, Greece's largest municipality and the host-city of the 2004 Olympics.

Government ministers: A call to rally the 'forces of the wider progressive area' and make alliances that could be crucial to victory was made by two of the government's foremost ministers on the second day of a meeting by PASOK's central committee on Saturday.

Environment, Town Planning and Public Works Minister Vasso Papandreou said that PASOK had to undertake initiatives to mobilize these forces and make them rally around the goal of a modern society that had self-confidence and optimism.

Greece's European prospects, she added, needed a modern local government with vision, plans and expertise that could tackle the problems that besieged citizens in their daily lives.

Development Minister Akis Tsohatzopoulos, on his part, said that municipal and prefectural elections were not a battle that would be judged by party political influence but a supremely political battle, while he stressed the importance of alliances for victory.

Calling for a "movement for convergence on a local level," he said party cadres should be ready to make changes to create a new type of local government "that created the conditions for mobilizing local forces so that victories could arise."

The minister stressed the need for reforms everywhere, but warned that they should be cleverly done, with planning and sensitivity to social needs, or they would fail.

At this point he used the failure of a planned merger between National Bank of Greece and Alpha Bank as an example, saying it had collapsed because it had not been sufficiently well considered beforehand.

The central committee was then addressed by Interior Minister Costas Skandalidis, who launched a vehement attack on main opposition New Democracy and said that all reforms toward decentralization and stronger local governments had been carried out by PASOK.

"ND is now trying to impose a historical amnesia and presents itself as the champion and supporter of institutions established under PASOK," he said.

Stressing that the government's policies and goals relative to local government institutions had not changed, he said the times required a new national plan that included government, local government and the institutions of the state.

Skandalidis said that the structures and functions of the modern state should be unified and supplement one another based on the principles of local autonomy, accessibility to citizens and balanced regional development in the framework of regional Europe.

Important to the new local government model, he added, were strong municipal administrations, which could play an important role in growth.

[04] PM and Tsohatzopoulos talk on sidelines of central committee meeting

Athens, 21/01/2002 (ANA)

Details regarding the meeting were not released, apart from the fact that it had taken place "in a good climate" and had dealt with issues concerning the party, particularly the upcoming local elections, and government policy in general.

Meanwhile, PASOK's central committee meeting continued for the second day on Saturday, with speakers focused chiefly on the political role of the upcoming local elections.

Education Minister Petros Efthymiou, for example, stressed the need for organization and 'unified political speech,' saying that everyone in the party had to realize that the municipal elections were a political battle and that the national elections afterward would be a continuation of this battle.

Former Greek basketball star and PASOK MP Panagiotis Fasoulas, meanwhile, made it clear that he did not intend to stand as mayor for Piraeus but wanted continue to occupy his seat in Parliament.

[05] Labor minister discusses pensions at EU meeting

BURGOS, 21/01/2002 (ANA)

Reppas, addressing the meeting which ended on Saturday, said that the great achievements of the European pensions systems of the past 50 years should not be endangered so as to safeguard old people.

[06] Coalition leader on October local elections

Athens, 21/01/2002 (ANA)

Speaking at the traditional cutting of the New Year cake (vassilopitta) in Thessaloniki on Saturday, Constantopoulos criticized Prime Minister Costas Simitis and ruling PASOK of adopting a policy of neoliberalism.

The Coalition leader predicted 2002 would be a crucial year during which there would be serious developments in the Cyprus issue and in Greek-Turkish relations. He further stressed that the government was adopting a damaging policy on the issues of the Aegean and the Euroarmy.

[07] Laliotis comments on 'Ta Nea' report on Mayo Corp; ND responds

Athens, 21/01/2002 (ANA)

The report in 'Ta Nea' said the Liberian company had been in existence since the days of Constantine Karamanlis the elder, founder of ND, and had been feeding the party with illegal funds since 1980, continuing through subsequent ND leaderships into the days of Constantine Mitsotakis presidency of the party.

Commenting on the report, PASOK Central Committee Secretary Costas Laliotis again called on the main opposition "to stop evading the issues and hiding and to help justice get to the bottom of this case, which does not concern the past but the present and future of our political system."

Laliotis had been the first to reveal the existence of the above-mentioned company and claim a link with ND and Mitsotakis, soon after taking over as PASOK party secretary.

Responding to Laliotis, ND spokesman Theodoros Roussopoulos noted that ND "has repeatedly stressed that this case in now in the hands of the courts, in which the party has total confidence."

[08] Terrorism should be made nat'l priority, Papathemelis says

Athens, 21/01/2002 (ANA)

Speaking at the cutting of the New Year cake (pitta) of the Political Club for Democracy and the Homeland in Thessaloniki, he appealed for rendering the issue of combatting terrorism a national priority with the use of cutting-edge technology, rallying of the entire police force, active social support, training of the anti-terrorism service's staff, and a broad network of cooperation with foreign governments.

In his address, titled "Hellenism of the 21st century - Turning the crisis into an opportunity", Papathemelis also referred to the country's foreign policy issues, saying that the current foreign policy was sending "erroneous messages of conciliatoriness to Turkey".

[09] Australian PM supports return of Parthenon Marbles to Greece

MELBOURNE, 21/01/2002 (ANA)

In a letter to the committee "Australians for the Return of the Parthenon Marbles," the Australian prime minister underlined that he viewed the Marbles as "an irreplaceable part of Greek cultural heritage," which he said should be returned to Greece.

Taking part in the committee, headed by David Hill, are former Austrian prime ministers, state prime ministers, party leaders, ministers, deputies senators and other distinguished Australians.

[10] ATHOC head visits Irakleio during four-day tour of Crete

Athens, 21/01/2002 (ANA)

Speaking in Irakleio, she said that she had met with unprecedented enthusiasm for volunteerism throughout her visit to the island.

[11] Stolen radiography device a health hazard, Atomic Energy Committee warns

Athens, 21/01/2002 (ANA)

They said the device was stolen on Friday evening from the Farsala-Theophrastos junction in Larissa.

The announcement said the machine was used for the installation of natural gas pipelines and contained a radioactive source of Iridium that was highly active. The source is contained within an armored container marked with the radioactivity sign.

Warning that the device could be seriously hazardous for the health of anyone possessing or using it, the Atomic Energy Committee advises anyone who has the device to contact Thessaly police headquarters or the Atomic Energy Committee.

[12] Digital Minoan ship soon to set sail in cyberspace

Athens, 21/01/2002 (ANA)

The digital replica of this unique example of ancient island shipbuilding was presented Sunday at the War Museum in Athens by the scientific research team conducting the program "Reconstructing the Minoan Ship", in cooperation with the Maritime Museum of Crete.

The scale model is nearly completed, and the next step will be to create a full-scale digital model.

[13] Laliotis questions court decision to drop action over killer building

Athens, 21/01/2002 (ANA)

The court said that the statute of limitations for the charges against those responsible for constructing the building had elapsed.

The building's collapse was the result of a strong earthquake that shook Athens in September 1999, causing extensive damage and claiming many lives.

Laliotis said he respected the court's decision but noted that it was not "consistent with the public's desire to see justice done and the guilty punished."

He also pointed out that the collapse of the building was not due to its original planning but to alterations and work done to the structure after it was erected, in order to turn the ground floor into a shop.

Since the work was not done from the beginning but afterward, claims that the statute of limitations had elapsed should not apply, Laliotis said. Instead, judges and experts should try to pinpoint the exact time when the additional work, which caused the building to collapse, was done.

"Judges must be sensitive and experts should exhaust the limits of their technical expertise to explore even the finest detail, so that justice is done, those responsible are found and the guilty are punished," Laliotis concluded.

[14] Greek lawyer files case against 'unconstitutional' euro with CoS

Athens, 21/01/2002 (ANA)

The lawyer, identified as P. Michaelides, claims that two laws that call for the drachma to be replaced by the euro contravene sections of articles 28, 80, 44 and 120 of the Constitution.

More specifically, he says that articles 28 and 80 of the Constitution dictate that bills establishing the euro as a new currency should be passed by a three fifths majority in Parliament, while article 44 demands that a national referendum is first held on whether or not to introduce the euro.

The violation of the above three articles also leads of the violation of article 120 of the Constitution, Michaelides argues, which calls for the prosecution of any form of usurpation of the people's authority and the powers arising from this.

[15] Egypt supports Cyprus struggle for a settlement

NICOSIA, 21/01/2002 (CNA/ANA)

Lyssarides briefed Maher on the latest developments in the Cyprus question and Cyprus bid to join the EU, noting that the Greek Cypriot side proceeds to the UN-led direct talks aiming to reach a settlement of the protracted Cyprus problem, ready to work intensively for a solution, noting that Turkey's position for "two states" on the island destroys every effort for substantive dialogue.

Cyprus presidential emissary requested Egypt's support in order to prevent Turkey from promoting the acknowledgment by Islamic states of the so-called "realities" on the island. Maher noted that his country's position on this issue is explicit, adding that Egypt supports the Cyprus government's positions. He also said that he would convey President Clerides' message to President Mubarak.

Lyssarides met also Saturday with the Egyptian Deputy Prime Minister and Minister of Agriculture and Land Reclamation Yusuf Wali and Speaker of the Egyptian Parliament Ahmad Fathi, whom he also briefed on developments in the Cyprus question and Cyprus' EU accession course.

During these meetings both sides expressed the need for further enhancement of the two countries' relations in all fields, while Lyssarides' interlocutors said they looked forward to the role Cyprus would play as an EU member state, with regard to Europe's relations with the Arab world.

Clerides and Turkish Cypriot leader Rauf Denktash started direct talks, under UN aegis, on 16 January. They have agreed to meet three times a week. Cyprus has been divided since 1974 when Turkish troops invaded and occupied its northern third.

Cyprus opened accession negotiations with the EU in 1998 and has so far provisionally closed 24 out of 29 chapters of the acquis communautaire.

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