Athens News Agency: Daily News Bulletin in English, 02-12-03

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

CONTENTS

[01] New Greek stability plan sees average growth of 3.8% until 2006

[02] Greek, Portuguese presidents discuss Cyprus issue, EU accession

[03] Simitis and Sampaio discuss cooperation within EU, future of Europe

[04] Portuguese President signs Olympic Truce Declaration in Athens

[05] Gov't: Cyprus' EU accession course must proceed; Annan plan talks can follow

[06] Verheugen optimistic over Cyprus solution

[07] Turkish FM says Turkey desires Europe's assistance on Cyprus

[08] FM Papandreou holds talks with U.S. Ambassador Miller

[09] Simitis begins week's official contacts by receiving Portugal's Sampaio

[10] Athens attaches great importance to FM's trip to Ankara, Beglitis says

[11] Defense minister due in France for WEU Assembly

[12] No Greek troops to Iraq, defense minister reiterates

[13] Deputy DM congratulates Bulgaria and Romania on NATO accession

[14] Deputy FM meets with Turkish minister of state

[15] Gov't again criticizes ND idea of 'shadow EU presidency'

[16] Greek FM to host luncheon in honor of Danish counterpart on Tuesday

[17] Gov't to create consumer council

[18] Greece applies to host Expo 2008

[19] Communist leader says taxation bill adding new burdens

[20] Taxi strike on Monday in Athens, Piraeus

[21] Athens Bourse Close: Stocks rise in steady buying, tracking Europe

[22] 10,000 leased 'Olympic homes' the target for 2004 Games, reps say

[23] Gov't wants renewal of taxi fleet by Athens 2004 Olympics

[24] Portuguese President meets with ATHOC president

[25] German envoy expresses confidence in Greek police, ahead of Athens Games

[26] Strong earthquake rocks Zakynthos, Kyllini, cracks in buildings reported

[27] Events in 27 European countries planned by culture ministry

[28] EU health ministers ban tobacco advertising on radio, Internet, press

[29] Two decomposed bodies, possibly of illegal immigrants, taken to Samos

[30] National Council to continue discussion on Annan plan Tuesday

[31] UN hope to have comments on Annan proposal soon, says top envoy

[01] New Greek stability plan sees average growth of 3.8% until 2006

Athens, 03/12/2002 (ANA)

The public debt is seen declining by four to five percentage points of gross domestic product each year to total 87.9 percent of GDP in 2006 from 105.3 percent in 2002.

The reduction is to be achieved from revenue the government is expecting to accrue from an updated privatization plan.

A new, tougher stability program for the 15-nation bloc ordains a rapid reduction for countries with high debt.

Also targeted in the Greek stability plan, which lasts until 2006, is a budgetary surplus from 2005 onwards. In 2003, the general government deficit will total 0.09 percent of GDP, falling to 0.4 percent of GDP in 2004.

A budgetary surplus of 0.2 percent of GDP is forecast for 2005, rising to 0.6 percent in 2006, according to the report.

Inflation is expected to hold steady around 3.0 percent throughout the program's duration, remaining above the eurozone average.

Above-inflation wage rises of an average 2.3 percent are to be awarded from 2003 to 2006.

Finally, the new stability plan includes a growth contingency clause should global economic conditions dampen the economy.

Under the contingency arrangement, growth would drop to an average 3.1 percent until 2006.

Detailing the plan to reporters in Brussels later in the day, Finance Minister Nikos Christodoulakis said that investment activity was expected to hold at an average annual 7.1 percent, rising to 10.0 percent in 2004 when Athens hosts the Olympic Games. In addition, growth would be higher in 2004, again due to the games, said Christodoulakis, who was visiting the Belgian capital to attend an EU meeting.

The minister also said that unemployment was expected to fall to 9.1 percent in 2003.

The target was feasible as joblessness was at 9.6 percent in the first quarter of 2002, he added.

[02] Greek, Portuguese presidents discuss Cyprus issue, EU accession

Athens, 03/12/2002 (ANA)

The two presidents ascertained identity of views on Cyprus' EU accession, as Portugal endorses Cyprus' membership in the European Union regardless of a prior solution to its political problem, Stephanopoulos told reporters after the meeting, which was also attended by the Greek and Portuguese foreign ministers.

They also discussed trade relations and European issues, and Stephanopoulos stressed the need for solidarity among the medium-size member states and called for equality among the large and small EU members.

The significance of the Greek EU presidency in the first half of 2003 was stressed, while the two heads of state further discussed issues related to illegal migration, the situation in the Middle East, and the latest developments in the war against terrorism.

Sampaio described as ''very positive'' the collaboration between Greece and Portugal, and pointed out their common views on the developments in Europe and Cyprus.

Sampaio said his country hoped that the Cyprus issue would be resolved within the framework of the UN, but clarified that Portugal did not believe that Cyprus' EU accession should wait until the island's political problem was solved. ''If it (the Cyprus issue) is solved by the EU summit in Copenhagen, fine. If not, there will be no problem with the accession,'' he said.

On the issue of setting a date for the commencement of accession negotiations with Turkey, Sampaio said that Portuguese was positive on this, and believed that at some point such a date must be set.

Sampaio is in Athens on an official visit, reciprocating a state visit by President Stephanopoulos to Lisbon in 1999.

President Stephanopoulos hosts dinner in honor of Portuguese counterpart: President of the Republic Kostis Stephanopoulos said on Monday evening that United Nations Secretary General Kofi Annan's plan for a comprehensive settlement of the political problem of Cyprus is a new starting point and a framework for further negotiations.

Speaking at a dinner he hosted in honor of his Portuguese counterpart Jorge Sampaio, Stephanopoulos said ''we view the Annan plan as a new starting point and as a framework for further intense negotiations for the achievement of a just, viable and functional solution.''

Stephanopoulos added: ''A solution which will be based on the UN decisions for the creation of a bizonal and bicommunal federation with a single international personality, a single voice in the international organizations, with one sovereignty and one citizenship. A solution which will be compatible with the European principles and the acquis communautaire and which will come to conclude the accession of Cyprus to the European Union, which we are sure will take place very soon to the benefit of the whole of the Cypriot people.''

The Greek president referred to the bonds of friendship and cooperation between Greece and Portugal as well as to the major European and international problems. The president spoke about the threat of terrorism worldwide and called for the phenomenon to be confronted only with the united efforts of all democratic countries within the framework always of international law.

[03] Simitis and Sampaio discuss cooperation within EU, future of Europe

Athens, 03/12/2002 (ANA)

After the meeting, Simitis spoke in favor of a federal system for the EU, in which the community element remained strong.

He called for coordinated economic policy in which the extension of social policy to tackle unemployment and develop social solidarity in Europe would be a central concern.

The Greek premier also called for emphasis on joint European policies for foreign affairs, defense and security and said that care was needed in the implementation of structural policy so that it did not slow down convergence.

Asked if there was sufficient time before the start of the EU Summit in Copenhagen on December 12 for a solution to the Cyprus problem to be achieved, the Greek premier said that the time was short but said that efforts should be made to continue talks for a solution after the summit.

Sampaio said that Cyprus' EU accession was important and agreed that solving the political problem could not be a condition for Cyprus' EU entry.

He said that the EU Stability Pact needed a new impetus from all EU member-state economies and said that Europe had to promote the development of a joint foreign affairs and security policy.

Finally, the Portuguese president referred to the recent naval accident involving the Greek-owned tanker ''Prestige'', which caused an ecological disaster last month when its hull split and poured tones of crude oil into the sea of the northeast coast of Spain.

Sampaio said that shipping safety was another issue that needed to be examined on an EU level, after controversy over whether the tanker had received adequate maintenance checks at EU ports.

Following the meeting, Sampaio was a guest at a dinner given in his honor by the Greek premier.

[04] Portuguese President signs Olympic Truce Declaration in Athens

Athens, 03/12/2002 (ANA)

The declaration aims at maintaining peace in the world during the Athens 2004 Olympic Games, an idea taken from ancient Greece when cities participating in the Olympics were forbidden to go to war at the expense of heavy financial fines that were levied per soldier on the field.

Addressing Sampaio, Papandreou said that the Games, in antiquity, were based on the idea of peace and Athens wishes to reintroduce this tradition, noting the case of the 1994 Winter Games when then IOC President Juan Antonio Samaranch was allowed to visit Sarajevo despite the war going on there.

On his part, Sampaio said that he was glad to participate in this initiative for the Olympic Truce, which he termed as a ''fantastic idea which can take us again to a normal reality''.

He also wished ''good luck'' to Greece in its upcoming EU presidency.

[05] Gov't: Cyprus' EU accession course must proceed; Annan plan talks can follow

Athens, 03/12/2002 (ANA)

Spokesman Christos Protopapas stressed that the island republic’s EU accession should proceed as usual during the upcoming Copenhagen Summit, with negotiations between the Greek Cypriot and Turkish Cypriot sides to follow or even begin slightly before the Summit.

Finally, asked about a scheduled visit by Foreign Minister George Papandreou to Ankara this week, the spokesman said it was deemed as useful, given the fact that no meetings have taken place between the Greek foreign ministry and the new Turkish government at this crucial period.

[06] Verheugen optimistic over Cyprus solution

VIENNA 03/12/2002 (ANA - D. Dimitrakoudis)

The commissioner, who was addressing an international conference here, said of a solution ''we are closer than in any other time in the past.''

Praising the UN's blueprint for the reunification of Cyprus, Verheugen said this result was preceded by decisions taken by the European Council in Helsinki in 1999 which stress that a political solution to the problem will facilitate Cyprus' accession to the EU, but does not constitute a precondition for accession.

He added that after Cyprus' accession the EU will guarantee observance of agreements contained in the UN blueprint for a solution to the Cyprus issue.

Austrian Chancellor Wolfgang Schuessel warned of the cost of Turkey's accession to the EU, adding that Europe should not be enlarged so much as to become unrecognizable.

He further said there is a long way until the accession of the countries of southeastern Europe, while these countries' closer attachment to the EU through association agreements is a great success.

Alternate Portuguese FM favors Helsinki decisions on Cyprus: Portuguese Alternate Foreign Minister Carlos Costa Neves held talks with his Greek counterpart Tassos Yiannitsis on Monday and expressed his country's support for Cyprus' unimpeded accession to the European Union in accordance with decisions taken during the EU's Helsinki summit.

Yiannitsis outlined Greek positions on Turkey's EU accession prospects, adding that the two issues are not interrelated and that the Cyprus issue cannot be held hostage by Turkish aims regarding the EU.

According to a ministry announcement, the course of the discussion on the Future of Europe was also examined. Both sides expressed the wish that the Assembly's work will be completed during the Greek presidency and probed prospects of cooperation on the specific issue on which a wide convergence of views was ascertained.

Issues regarding the preparation of the EU-Africa summit, scheduled to take place in Lisbon in April 2003, were also discussed.

[07] Turkish FM says Turkey desires Europe's assistance on Cyprus

ISTANBUL 03/12/2002 (ANA/A. Kourkoulas)

Yakis, who criticized foreign policy hardliners in Turkey, explained how the decision-making system functions in Turkey and added that there are no forces lying outside institutions which are capable of imposing their will on the elected government.

However, he said that the Turkish government will promote a series of reforms immediately which will secure Turkey's convergence with criteria set in Copenhagen.

These reforms are not taking place for convergence with Europe alone but are also taking place for the values sought by Turkish society, Yakis said.

The Turkish foreign minister accepted that, as a matter of fact, a solution to the Cyprus issue is linked to the setting of a date for the beginning of negotiations for Turkey's EU accession and is being distanced from the logic of past governments which set conditions for the EU.

[08] FM Papandreou holds talks with U.S. Ambassador Miller

Athens, 03/12/2002 (ANA)

Speaking to reporters after his half-hour long meeting with Papandreou, Miller avoided to comment on whether he was optimistic or pessimistic that an agreement on the Cyprus problem will be reached before the EU summit in Copenhagen on December 12-13, noting that it was not proper for one to make forecasts at this moment of time.

"I do not know at all what will happen until Copenhagen," the ambassador said. He noted however that the days remaining until the summit "are very important" and spoke of particularly intense consultations.

Miller added that "if there is good will an agreement can be achieved." He did not wish to answer a question on whether the United States will continue their efforts for a solution if a settlement is not reached until the summit.

[09] Simitis begins week's official contacts by receiving Portugal's Sampaio

Athens, 03/12/2002 (ANA)

On Tuesday morning Simitis will receive Danish Foreign Minister Per Stig Moller, the current chairman of the EU foreign ministers’ council, followed by a meeting with Finnish Prime Minister Paavo Lipponen.

On Wednesday the Greek prime minister will hold several contacts with a handful of ministers, before chairing a Cabinet meeting on Thursday focusing on regional development and 3rd CSF-financed projects.

Simitis departs for Rome on Friday for talks with Italian Prime Minister Silvio Berlusconi, while on Monday he is scheduled to meet with European Parliament President Pat Cox.

[10] Athens attaches great importance to FM's trip to Ankara, Beglitis says

Athens, 03/12/2002 (ANA)

Beglitis said that Athens desired the EU '15' to give a positive message to Ankara with respect to its EU accession prospects and that the Greek side wanted the Copenhagen Summit conclusions to clearly reflect that efforts to resolve the Cyprus issue would continue after December 12.

While in Ankara, Papandreou will be meeting Turkish Prime Minister Abdullah Gul, the head of the ruling Justice and Development Party (AKP) Recep Tayyip Erdogan and other Turkish officials, Beglitis said.

The Greek foreign minister's talks during the visit would be chiefly centre on Greek-Turkish bilateral relations, the Cyprus issue and Turkey's hopes to receive a firm date for the start of accession negotiations with the EU, Beglitis added.

In addition to Erdogan and Gul, meetings had been scheduled with Turkish opposition leader Deniz Baykal, leader of the centre-left Republican People's Party (CHP), and US Undersecretary of State Marc Grossman, whose visit to Ankara coincides with that by Papandreou.

Responding to questions, meanwhile, the spokesman noted that the time before the summit was further limited by the ill health of Turkish-Cypriot leader Rauf Denktash.

''We must all contribute to creating the necessary conditions for the process to continue after December 12,'' he said.

Beglitis said that these issues would occupy a meeting on Tuesday at the office of Prime Minister Costas Simitis, during a visit by the Danish EU presidency's foreign minister Per Stig Moller, who is touring European capitals prior to the summit.

Asked about main opposition New Democracy's 'shadow EU presidency', Beglitis said that this was unprecedented institution that never been attempted before in any other country.

At the same time, he hailed the Centrist Democrats International (CDI) conference organized by the main opposition on Corfu in an effort to promote Greek national goals.

[11] Defense minister due in France for WEU Assembly

Athens, 03/12/2002 (ANA)

The assembly is expected to discuss the operation of a planned European military force in 2005, its funding, EU-NATO relations, European Defense and Security Policy in the Mediterranean and dealing with international terrorism.

Papantoniou will present the goals and priorities of the Greek presidency for European defense and security.

[12] No Greek troops to Iraq, defense minister reiterates

Athens, 03/12/2002 (ANA)

If the international community decided to launch a military campaign against Iraq, Greece would confine itself to facilitating the Allied operations, he added.

On questions regarding the main opposition's claim that a corvette purchased by the Greek Navy had been overpriced, Papantoniou said that the cost was still being negotiated with Elefsina Shipyards and the sum quoted was the Navy's uppermost limit.

Defense minister: latest recruitment drive for professional troops a success: A recruitment drive to hire professional soldiers for the Greek armed forces that ended on November 28 was a success, Defense Minister Yiannos Papantoniou announced on Monday.

He said that 11,500 applications had been received for the 2,849 positions originally envisioned by the defense ministry, which finally decided to hire 5,699 applicants.

This meant that the ministry goal to hire 25,000 professional troops by 2005 was now attainable, he added.

According to the ministry time frame, 8,000 soldiers will be hired in 2004 and 8,150 in 2005, while a total of 8,850 were hired in the two recruitment drives that have been completed.

The new professional troops will allow mandatory national service to be reduced to 12 months as of January 1, 2003. From 2005 onward, it is expected that professional troops will account for 50 per cent of the manpower at Greek army bases.

The new recruits will be stationed at border units in the Aegean and Evros after completing their training.

Papantoniou also announced plans to hire female professional troops that would take up administrative posts in future recruitment drives.

DM announces changes to conscripts' tour of duty service: Defense Minister Yiannos Papantoniou on Monday announced changes in the structure of the Greek Armed Forces conscription system and allocation to units.

With the new system, and as the tour of duty has been limited to 12 months of service, all conscripts will be assigned without exemptions to combat military units in Thrace, Macedonia and the islands of the Aegean for at least six months. The only exemption from that rule will be that of the mine-clearing units and that of the airborne brigade, where personnel will serve the entire 12-month tour.

[13] Deputy DM congratulates Bulgaria and Romania on NATO accession

Athens, 03/12/2002 (ANA)

He sent his messages of congratulations to Bulgaria's deputy defense ministers Sonya Yankulova, Ivo Ivanov, Mehmed Ali Tzafer and Georgi Paskov and Romania's deputy defense minister George-Cristian Maior.

In his messages, Apostolidis expressed ''Greece's particular joy and satisfaction'' that ''the long and difficult accession procedure'' of these countries, among the other countries incorporated to NATO, ''has come to an end.''

[14] Deputy FM meets with Turkish minister of state

Athens, 03/12/2002 (ANA)

During the meeting, Loverdos informed Tuzmen that Greece will lift its reservations concerning the signing of an agreement to avoid double taxation with Turkey. The two men also agreed to hold a meeting of the second joint inter-ministerial Greek-Turkish committee during the first half of March in Ankara and repeat it during the last half of the same month in Samos.

The scheduling will be finalized in concert with the ministry of development.

[15] Gov't again criticizes ND idea of 'shadow EU presidency'

Athens, 03/12/2002 (ANA)

In response to a press question, government spokesman Christos Protopapas said “in all the EU member-states political forces act with seriousness in order for their country’s presidency to succeed in its duties ... An unfortunate exception to this rule is this farcical shadow presidency.”

[16] Greek FM to host luncheon in honor of Danish counterpart on Tuesday

Athens, 03/12/2002 (ANA)

Greece will undertake the presidency following Denmark.

[17] Gov't to create consumer council

BRUSSELS 03/12/2002 (ANA/G.Zitouniati)

Sitting on the council, which would operate on a national level with regional branches, would be representatives of business as well as consumers, in order to try to iron out differences between the two sides, Tsohatzopoulos told reporters.

Consumer protection would also be a priority of Greece's rotating presidency of the European Union in the first half of 2003, he added.

The minister was in the Belgian capital to attend a meeting of EU competition ministers.

[18] Greece applies to host Expo 2008

Athens, 03/12/2002 (ANA)

The Greek bid was presented by Macedonia-Thrace Minister George Paschalidis at a meeting in Monaco of the BIE world trade fairs group.

[19] Communist leader says taxation bill adding new burdens

Athens, 03/12/2002 (ANA)

Papariga, who was speaking after talks with a delegation of the GSEBEE trade union, said she considers its opposition to the bill justified, adding that the issue is a general political issue.

''From the moment a policy in favor of large capital is being followed, their lives will become much worse from now on. Therefore, the issue is one for the mass and political struggle,'' she said.

[20] Taxi strike on Monday in Athens, Piraeus

Athens, 03/12/2002 (ANA)

The strike will begin at 5:00 a.m. Monday, with taxis returning to circulation at 5:00 a.m. on Tuesday, union representatives said, adding that the action was to protest the government's failures to satisfy financial demands.

Taxi owners in the Attica prefecture are demanding an increase in fares and access to the bus lanes, in which only buses and motorcycles are presently allowed.

Taxis held a 48-hour strike last week, on Wednesday and Thursday, to press for the same demands.

[21] Athens Bourse Close: Stocks rise in steady buying, tracking Europe

Athens, 03/12/2002 (ANA)

The general share index gained 1.07 percent to end at 1,892.78 points. Turnover was 101.5 million euros.

The FTSE/ASE-20 index for blue chip and heavily traded stocks ended 1.18 percent up; the FTSE/ASE-40 for medium capitalization paper 1.71 percent higher; and the FTSE/ASE-80 for small cap equities finished 1.79 percent up.

Of stocks traded, advances led declines at 264 to 72 with 29 issues remaining unchanged.

The most heavily traded stocks in value were Hellenic Telecommunications Organization, Public Power Corporation, National Bank of Greece, Panafon, and Cosmote.

Derivatives Market Close: Turnover at 72.5 mln euros Monday

Equity Index Futures: