Athens News Agency: Daily News Bulletin in English, 03-06-04

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

CONTENTS

[01] EU finance ministers forge deal on bank deposits tax

[02] EU-NATO meeting: FM says EU turning into important strategic factor

[03] G8 summit ends after examining global growth and sustainable development

[04] Greek defense minister attends WEU Parliamentary Assembly session

[05] 'Turkish foreign policy is totally isolated', spokesman says

[06] Greek firms' participation in Iraq discussed; DM on airspace violations

[07] Alternate FM reviews results of Greece's EU Presidency

[08] Parl't committee to summon ministers for briefing on NGO state funding

[09] EU-Med cooperation - meeting on immigration, terrorism on 15 June in Brussels

[10] EU Commission adopts package of measures for Turkish Cypriots

[11] Boards of Hellenic Petroleum, Petrola okay merger deal

[12] Agriculture minister addresses European Parliament on farm policy reform

[13] MPs criticize ELBO for its role in army vehicles tender

[14] Thessaloniki presents bid to host EXPO 2008

[15] Greek stocks end higher on Tuesday

[16] ATHOC reports satisfactory demand for 2004 Olympics tickets

[17] 3rd World Press Operations Briefing focuses on 2004 preparations

[18] EU Commission calls for better integration of immigrants in member-states

[19] Informal meeting stresses need for organized EU solidarity framework

[20] EU calls on 700 Kosovo gypsies to return to temporary camp

[21] No security alert on night of Ocalan's arrival, witness tells Greek court

[22] Alleged 'N17' leader claims authorities 'framed him'

[23] Cultural Olympiad exhibition on Mediterranean cultures at Cycladic Museum

[24] European Art exhibition at the Dupont Circle Galleries in Washington

[25] Red Cross and European Commission launch plan to save children

[26] Cyprus President briefs National Council on developments

[27] UN report routine document, says spokesman

[01] EU finance ministers forge deal on bank deposits tax

European Union finance ministers on Tuesday reached a compromise formula on taxing deposits held by citizens of the bloc in other member countries.

Finance Minister Nikos Christodoulakis told reporters that the 15-year dispute had ended following a last minute agreement with Italy, which had so far blocked a deal on the package.

Greece, which chaired the meeting as the EU's rotating president, proposed offering Italian dairy producers a 14-year time span to pay off fines totalling 650 million euros in interest-free installments in return for its consent to the bank deposits package.

Italy, which accepted the offer, had originally sought a reduction in the fines imposed on farmers for exceeding milk quotas in return for lifting its veto on the deposits pact.

Under the bank deposits tax agreement finally passed, 12 EU members out of the current 15 have agreed to an information exchange on deposits held in their states by EU nationals from other countries of the bloc. The pact takes effect on January 1, 2005. Remaining outside the data exchange are Luxembourg, Belgium and Austria, which are to tax the deposits at source instead of releasing information, as they wish to retain banking confidentiality.

The tax in the three countries will be 15 percent of interest between 2005 and 2008; 20 percent until 2011; and 35 percent beyond that year. Seventy five percent of the tax collected will be given to the country of origin of the EU nationals holding the accounts.

Also at the meeting of EU finance ministers, the last under Greece's six-month presidency of the bloc, it was agreed to ask France to lower its deficits in 2003 and 2004, Christodoulakis said.

Finally, the ministers endorsed guidelines for the EU's economic policy, which will be put to a summit to be held in the northern Greek city of Thessaloniki later this month.

The guidelines include tight fiscal discipline and measures to ensure long-term viability of social insurance and pension funds, the minister added.

[02] EU-NATO meeting: FM says EU turning into important strategic factor

MADRID 04/06/2003 (ANA - F. Karaviti)

''In Thessaloniki, the Greek presidency will present the work it has prepared together with the European Union's High Commissioner on Foreign affairs Mr. (Javier) Xavier Solana and we hope that the foundation will be laid for equal cooperation with the United States. In any case, only such a relation can safeguard the promotion of peace and security on the planet,'' he said.

Referring to reactions on initial conclusions announced by the European Assembly on the future constitution of Europe, Papandreou spoke of ''extremely important work by the Assembly'' and ''differences which, even if they are not bridged, will not prevent us from reaching an agreement in principle with alternative formulations for controversial issues.''

Papandreou was speaking on the sidelines of the summit of NATO member-states' foreign ministers which began here on Tuesday focusing primarily on the alliance's transition from the post-Cold War era to that of international reality as it has been shaped after the attacks on September 11, 2001.

A finalized text ratified by the alliance makes reference both to cooperation between the EU and the United states and to the leading role the alliance is assuming with regard to Euro-Atlantic security.

It was stressed that NATO will provide administrative backing for the 7,000-strong force Poland will be sending to Baghdad, while the announcement also underlines harmonious cooperation between the alliance and the EU, particularly in FYROM where the so-called European army is active.

Explicit reference is also made to the summit to take place in Thessaloniki between the countries of the EU and of the western Balkans on the sidelines of the European Council.

''NATO and the European Union have a common interest in backing Balkan countries in their effort to accede to Euro-Atlantic structures. We are expecting considerable steps to be taken in this direction at the meeting in Thessaloniki. NATO will continue to play a considerable role in the region, both with its programs and with cooperation with the European Union,'' the announcement said.

Special mention is also made in the announcement of the issue of terrorism and for whose handling NATO appears prepared to use military means as well.

NATO Secretary General Lord Robertson said after a meeting with the EU presidency in the framework of NATO foreign ministers' spring summit ''we are colleagues and not competitors and we can cooperate in many sectors for security and stability, but our enemy would be the overlapping of duties and responsibilities between us.''

Lord Robertson further said ''we must handle the development of operational possibilities, but we must take care to ensure that funds provided would not be wasted'' and spoke of the possible assumption of responsibility for the international force in Bosnia by European Union forces.

''Although it is too early for us to speak of such a thing, we shall examine all factors, with the interest of the people of Bosnia always being the basic criterion,'' he added, replying to a question on rumors of objections by Washington.

Papandreou said on the part of the EU ''the question is to what degree we are ready. There is no problem in principle'' and termed the case of the task force in FYROM an ''example of cooperation.''

The foreign minister further said ''the idea of European Strategic Conception will enable us to find the means, the targets and the way to have this cooperation strengthened and this will be our priority at the European Council in Thessaloniki. Developing a global conscience on international security is our responsibility.''

[03] G8 summit ends after examining global growth and sustainable development

EVIAN, France 04/06/2003 (ANA - V. Mourtis)

On the question of global growth optimism exists on the future growth rates of economies as well as the wish that the United States alone will not be the steam engine of global growth but Europe and Japan as well.

The current difference in interest rates between Europe and the United States and the strengthening of the euro against the dollar were also discussed during the summit.

Texts of action were agreed upon regarding sustainable development on the use of research and technology for protecting the environment, the combating of hunger, for water resources and health.

The discussion on security and international terrorism primarily concerned the creation of an anti-terrorism nucleus of action, measures for the security of shipping and air transport and restricting terrorists from access to weapons of mass destruction.

A joint statement was also issued against the proliferation of weapons of mass destruction and against terrorism with radioactive weapons.

Discussions on regional issues concerned Iraq, the Middle East, Afghanistan, Iran, Algeria and Africa.

[04] Greek defense minister attends WEU Parliamentary Assembly session

Athens, 04/06/2003 (ANA)

Replying to reporters’ questions after the end of the meeting, Papantoniou said the Greek Presidency had achieved laying the foundations of European defense, with the establishment of the Euroforce which is now operational and can undertake important missions, as it currently does in the Former Yugoslav Republic of Macedonia (FYROM).

The defense minister expounded on the two directions promoted by the Greek Presidency, the first of which is to expand the Euroforce’s missions to cover security issues in EU member-states.

The second direction is to introduce a clause into the EU constitution stipulating that an attack against a member-state constitutes an attack against the EU as a whole.

According to Papantoniou, if the EU develops into a collective defense organization, in a form similar to NATO, it would be associated with the North Atlantic alliance but it would at the same time retain its autonomy.

He further said that Greece would make all efforts within the Convention for the Future of Europe to achieve consensus among all EU-25 member-states on the future of the Union’s defense and security policy.

[05] 'Turkish foreign policy is totally isolated', spokesman says

Athens, 04/06/2003 (ANA)

''The success of Greek policy however is based on the fact that it remains concentrated on primary matters, such as the settlement of the Cyprus problem,'' the spokesman added.

The spokesman also denounced as unacceptable and unreasonable a report in the International Herarld Tribune according to which Europe did not meet up to its expectations at the G8 summit.

''We have all seen the efforts and the results of the Greek (EU) Presidency's work and nobody can undermine this work,'' Proto-papas observed.

[06] Greek firms' participation in Iraq discussed; DM on airspace violations

Athens, 04/06/2003 (ANA)

According to reports, the US side apparently did not preclude the participation of Greece-based firms in the oil-rich Mideast country currently administered by Washington.

In an unrelated matter, Papantoniou again warned of an accident in the face of continuing violations of Greek airspace in the Aegean by Turkish warplanes.

Defense ministry sources on Tuesday said 36 Turkish fighters committed up to 25 violations of Greek airspace in the northern and central Aegean, causing Hellenic Air Force planes to scramble and intercept the encroaching planes. Mid-air engagements were reported in seven instances, while other reports claim that at least seven Turkish warplanes were also armed.

Turkish warplanes infringe Athens FIR, violate national airspace: Press reports said on Tuesday 44 Turkish warplanes made 17 infringements of air traffic regulations in the Athens Flight Information Region (FIR), which developed into 45 violations of national airspace in the northern, central and southern Aegean.

In all cases, the Turkish warplanes were recognized and intercepted by Greek jets, while in eight cases the interception process developed into an engagement.

It was revealed that nine of the Turkish aircraft were armed.

[07] Alternate FM reviews results of Greece's EU Presidency

STRASBOURG 04/06/2003 (ANA - O. Tsipira)

The alternate foreign minister referred to four major entities in which developments were registered during the Greek EU Presidency.

In the sector of enlargement with the signing of the Accession Treaty in Athens on April 16, the 10 new acceding countries have already started expressing their positions, he said.

On political developments, the Iraq issue prevailed during the Greek EU presidency, he said, noting that although at first there were differences of views, Europe proceeded in joint statements in February and March. At the end of the war in Iraq, Yiannitsis observed, ''we are seeing the efforts for bridging the differences of the member countries but also the development of a broader consideration for joint foreign and defense policy.''

The Middle East was another major issue during the Greek EU Presidency. ''The Road Map is a development for which the Union made a great effort in order for it to become a reality and now it is exerting pressure for its implementation,'' Yiannitsis said.

Yiannitsis also referred to other political fields where the EU's presence is stronger, such as the Euro-Mediterranean Conference, relations with Russia, the western Balkans and third countries.

On institutional reforms, the minister remarked that the Convention for the Future of Europe will soon conclude its sessions and submit its proposals at the EU summit in Thessaloniki.

In the sector of ''ad hoc'' individual issues, Yiannitsis referred to a series of reforms and decisions, such as the funding of the enlargement, the status of EU employees, the issue of security in maritime transport, the Stability Pact and the Common Agricultural Policy.

[08] Parl't committee to summon ministers for briefing on NGO state funding

Athens, 04/06/2003 (ANA)

The issue was raised by Coalition MP Fotis Kouvelis, who proposed that the ministers be asked to give details on the size of funding for each NGO and where these funds come from.

The committee will seek to investigate concerns that the large sums involved are being used to promote party-political interests and to influence voters.

[09] EU-Med cooperation - meeting on immigration, terrorism on 15 June in Brussels

Athens, 04/06/2003 (ANA)

Taking place within the framework of the EU-Mediterranean countries cooperation, the meeting will also focus on issues associated with reforms in the justice department and the public sector in Third countries in the Mediterranean region.

[10] EU Commission adopts package of measures for Turkish Cypriots

BRUSSELS 04/06/2003 (ANA/V.Demiris)

The Commission proposes financial assistance for 2003 worth 12 million Euro, of which 9 million is for economic development and 3 million for actions aimed at bringing the Turkish Cypriot community closer to the EU.

The Commission's measures, which have been proposed by Commissioner for Enlargement Guenter Verheugen, will be submitted to the EU Council of Ministers and the EU-Cyprus Association Council.

''The Commission takes up this invitation and sends a clear political signal of support to the Turkish Cypriot community through the following measures, which would start to be implemented in 2003:

Financial assistance for economic development and for measures bringing the Turkish Cypriot community closer to the EU, and Trade promotion'', the Commission's text says.|

The assistance for economic development would be implemented in co-operation with the UN and would support: - Six million euro for infrastructure projects for the main cities in the northern part (Nicosia, Famagusta, Kyrenia) focusing on wastewater, drinking water, sewage or rehabilitation issues. - Two million euro for grant schemes for support to SMEs. - One million for feasibility studies to prepare economic integration of the northern part of Cyprus with the EU after a political solution, including preparation of programs for future participation in the EU structural policy. - One and a half million for the support for actions aiming at bringing the Turkish Cypriot community closer to the Greek Cypriot community. - Half a million euro for the support of trade forum organizations. - One million euro for information seminars on the acquis communautaire.

Commenting on Tuesday's decision by the Commission, Verheugen expressed the Commission's readiness to ''assist to any further efforts to contribute to a comprehensive settlement on the basis of the UN plan, which remains on the table''.

He added that there is now a window of opportunity for a united Cyprus joining the EU by 1 May 2004, when Cyprus will officially become full member state of the EU.

''Meanwhile, in line with the request of the European Council, we should do all we can to help the people of the northern part of Cyprus'', Verheugen stated.

Regarding trade promotion, the Commission's text reminds a 1994 judgment of the European Court of Justice, which says that movement certificates issued by the so called ''authorities'' of the self proclaimed state in the northern Turkish occupied part of Cyprus, ''have not been accepted under the Association Agreement between Cyprus and the EC''.

Prior to the accession of Cyprus to the EU and pending a solution to the Cyprus problem, the Commission proposes that the Turkish Cypriot Chamber of Commerce is given the authority to issue movement certificates.

According to the Commission's proposals, the EC-Cyprus Association Council would adopt a decision, to complement the Protocol concerning the definition of the concept of ''originating products'' and methods of administrative cooperation. It would also lay down, as appropriate, any other conditions under which goods produced or obtained in the northern part of the island have preferential access to the EU markets.

Asked about the movement of Turkish Cypriot products, Verheugen's Spokesman Jean Christoph Filori, said that it is obvious that those products will be exported via ports, which are under the control of the Cyprus Republic's authorities.

The Commission's text also refers to the failure of the talks between the leaders of both Cypriot communities in The Hague in March 2003 and states that the European Council has ''very much regretted'' the failure and adds that ''the peace plan of the UN Secretary General Kofi Annan remains on the table''.

''UN SG has made it known that he will not propose to take any new initiative unless there is solid reason to believe that the necessary political will exists for a successful outcome'', the Commission says and expresses its readiness to assist any further efforts in this context.

''The Commission has repeatedly stated its strong support for a comprehensive settlement on the basis of the UN plan. In the event of a settlement, an additional amount of 206 million Euro is foreseen for the period 2004-2006 to support the northern part of Cyprus'', the Commissions text says.

Greek Cypriot and Turkish Cypriot expatriates issue joint Athens statement: Greek Cypriot expatriates and Turkish Cypriot expatriates in a joint statement issued in Athens on Tuesday announced the establishment of a Bicommunal Initiative for the peaceful solution of the Cyprus problem and for rapprochement of the two communities on the island republic.

The Greek Cypriot Federation of Cypriot Organizations in Greece (OKOE) and the Turkish Cypriot KIBES, organizations of Turkish Cypriots living in various European countries, had a meeting last Sunday in Athens during which they discussed the protracted Cyprus problem.

[11] Boards of Hellenic Petroleum, Petrola okay merger deal

Athens, 04/06/2003 (ANA)

Under the merger, state-owned Hellenic, the larger of the two companies, would absorb private sector Petrola, the sources said.

Gov't: EL.PE-Petrola merger in state's 'best interests': The government again stated on Tuesday that last week’s sudden announcement of a merger between state-run Hellenic Petroleum (EL.PE) and Petrola refineries, controlled by the Latsis group, was “absolutely” in the state’s best interests.

Speaking at his daily press briefing, government spokesman Christos Protopapas said the government believes the deal, between the two listed companies, will boost competitiveness in the economy and rake in millions of euros for public coffers.

Oil workers take diverging line on merger: Workers at state Hellenic Petroleum SA and private Petrola Hellas SA on Tuesday showed diverging reactions to a merger plan for the two companies, which are both Athens-quoted.

Staff union members at Hellenic Petroleum occupied company offices in Athens to try to disrupt a board meeting and delay management's endorsement of the merger deal. The union threatened further action against the plan if it went ahead.

Workers at Petrola welcomed the planned merger, saying it reflected a global trend in the sector, including Greece, when Aramco merged with Athens-quoted Motor Oil SA.

In a statement, their union said the merger would boost the new company's competitiveness on a regional level and raise its global profile, benefiting both firms.

Also on Tuesday, Development Minister Akis Tsohatzopoulos told Radio Thessaloniki that reports were untrue that the state planned to withdraw from Hellenic Petroleum's management.

[12] Agriculture minister addresses European Parliament on farm policy reform

STRASBOURG 04/06/2003 (ANA - O. Tsipira)

He said when the Greek government assumed the responsibilities of the Council's presidency on January 1, 2003, CAP reform was at a crucial point.

Consequently, he added, negotiating the closure of this file was one of the main targets of the Greek presidency which went ahead with the creation of a high level group with the purpose of preparing the Council summit in June.

''We are at a crucial moment in the process for the reform of CAP. I am optimistic that with realism and goodwill we shall be able to reach a political agreement during the coming weeks,'' Drys said.

[13] MPs criticize ELBO for its role in army vehicles tender

Athens, 04/06/2003 (ANA)

MPs from all parties accused ELBO, in which the Greek state holds a 51 per cent stake and the mining group Mytilineos SA 47.5 per cent, of having a conflict of interest since it was called to select candidates in a tender for a product that it produces itself.

They said ELBO had 'directed' the process to ensure the selection of the American-Israeli firm MA General, with which ELBO collaborates in the manufacture of Hamer armored cars.

The issue was brought to Parliament's attention after a complaint made by the Greek firm NAMKO, which represents Spain's URO, that there had been no international tender for the contract.

It said ELBO had pre-selected three companies, two of which represented German interests, in order to make MA General's bid seem the most financially appealing.

An ELBO board member countered that NAMKO would have been excluded from the tender in any case because it was on the verge of bankruptcy and financially unreliable.

He also defended the price negotiated by ELBO for the Hamer vehicles, saying it was substantially lower that that for the rest of Europe since ELBO participated in the production and produced 35 per cent of the Hamer parts domestically.

[14] Thessaloniki presents bid to host EXPO 2008

PARIS 04/06/2003 (ANA)

The candidacies of Zaragoza and Trieste were also presented at the event.

The minister said that ''Thessaloniki, with a strong Balkan, European and Mediterranean dimension, is seeking through EXPO 2008 to fully express the region of south-east Europe and the Mediterranean.''

[15] Greek stocks end higher on Tuesday

Athens, 04/06/2003 (ANA)

The general index rose 0.63 percent to end at 1,779.98 points, with turnover an improved 126 million euros.

The Cement index ended unchanged from Monday's closing, while the Food-Beverage, Textile, Retail, Wholesale, Insurance and IT sectors scored the biggest percentage gains of the day (2.06 percent, 1.79 percent, 1.72 percent, 1.70 percent, 1.55 percent and 1.43 percent, respectively).

The FTSE/ASE 20 index for blue chip and heavy traded stocks rose 0.40 percent, the FTSE/ASE MID 40 index ended 1.56 percent higher, the FTSE/ASE SmallCap 80 index rose 1.21 percent and the FTSE/ASE 140 index rose 0.68 percent.

Broadly, advancers led decliners by 204 to 93 with another 67 issues unchanged.

Derivatives Market Close: Turnover at 92.3 mln euros Tuesday

Equity Index Futures: