Athens News Agency: Daily News Bulletin in English, 03-09-03

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

CONTENTS

[01] Simitis unveils social package worth 1.7 bln euros

[02] Critical period for foreign policy ahead, Papandreou says on 'Flash' radio

[03] Premier receives ruling PASOK party secretary

[04] FM receives US Congresswoman, discusses western Balkans

[05] Interior minister's list of EU's regions committee approved

[06] Ruling PASOK party to celebrate 29th anniversary on Wednesday

[07] Deputy FM meets with expatriate Greek politicians

[08] Greek unemployment fell to 8.9 pct in second quarter

[09] Greece suffers from high social imbalances, report says

[10] Greece's cosmetics market grows strongly, report

[11] Central Europeans see Greece as most favorable tourist destination

[12] Civil aviation workers to strike Thursday over new Olympic Airways

[13] Greek stocks suffer heavy losses on Tuesday

[14] ATHOC chief sums up results from August's 'test events'

[15] New Zealand police delegation in Athens, discuss Olympic Games security

[16] Culture minister discusses Olympic Games with Australian ambassador

[17] Yiannitsis tours prefecture of Rodopi

[18] Giotopoulos' statement delayed until Thursday

[19] Weak tremors register in Iraklion, seismologists appear unconcerned

[20] EU regional, cohesion policies key to integration, eurodeputy says

[21] New Greek general consul in Istanbul

[22] President Papadopoulos says Annan's plan could still work

[23] Al-Shara assures of Syria's steady support to Cyprus

[24] Euro MPs call on Pat Cox to put pressure on Ankara

[01] Simitis unveils social package worth 1.7 bln euros

Athens, 03/09/2003 (ANA)

''With this social package we are exceeding the EU's average social spending and achieving real convergence without burdening the Greek economy,'' the Greek premier said.

Simitis stressed that the government was able to adopt a social spending program because of the country's high growth rates and the government's fiscal policy.

The government's ''social package'' includes measures to reduce fuel costs for farmers, raising farmers' base pension by 30 euros to 200 euros per month, and abolishing a tax on agricultural land's transfer.

Also, offering an annual subsidy of 1,000 euros for every child studying in other cities, reducing a tax for buying new cars by 20 percent, raising a supplementary pension and creating 25,000 part-time jobs in the public sector. The package also includes measures to reduce fuel costs for enterprises.

The prime minister stressed that the package would accelerate the country's incomes convergence with the rest of the EU.

Economy minister: National Economy Minister Nikos Christodoulakis, later, said that 2004 will be the year of ''harvest for the fruit'' not only for development measures but for measures concerning social policy as well.

He added that the cost of the measures does not exceed the fiscal capacity of the Greek economy, noting that the target for the rate of development is 3.8 and is fully attainable, while it is possible that it may be higher.

Speaking of unemployment, he said that it was declining and the 8.9 per cent unemployment announced by the Greek Statistical Service for the first quarter of 2003 is the lowest of the decade.

He added that another 93,000 people found jobs according to the data of the statistical service.

''We achieved and solidified convergence,'' the minister said, adding that for the first time ever spending for social policy exceeded that of the European Union average, while social policy now has a base for further development.

''Greece does not diverge from the EU indexes, and the per capita income, as it is expressed in units of purchasing power is increasing continually the past four years and we are not in the last place among member-states anymore,'' he said.

''We did very many and important things till now and we have solidified development, we have many more things to do yet,'' he added.

''In this framework, from Jan. 1, 2004, we have a new package of measures of a social character, for the development of rural areas, and for the support of employment,'' he said adding that development without increased employment is one without vision.

He also said that the government supported small and medium businesses, which are the backbone for development, while referring to the need of upgrading of public administration.

Speaking on specific issues, the minister noted that the 2003 budget condition is ''normalizing'' concerning incomes, while spending will be curtailed.

He went on to announce that taxes on private automobiles with a factory list price of under 50.000 will be reduced by 20 per cent, thus lowering the after tax price of cars.

Also, he added that motorcycles with engines of under 125 cubic centimeters will not be subject to taxation, while taxes on the rest of the motorcycles will also be reduced as those on cars by 20 per cent.

On a more ecological note, the minister also announced special taxation treatment for cars that are considered environmentally friendly, as taxation will range from 0 per cent to 10 per cent, while regular cars' taxation will range from 5 per cent to 50 per cent, decreased from 7 per cent to 88 per cent.

Opposition parties on ''social package'' announced by PM; gov't reaction: Main opposition New Democracy leader Costas Karamanlis reiterated his call for the government's resignation on Tuesday, following the announcement of the government's 'social package' - a series of measures targeting the economically weaker groups in Greek society - by Prime Minister Costas Simitis.

The prime minister was "promising tips using borrowed money", while the one euro a day increase for pensioners and un-employed should not be presented as social policy, he said.

Karamanlis slammed the state of the Greek economy and accused Simitis of ''shamelessly promising the same things for the eighth time and again resorting to a new trade in hopes''. He also said Simitis was resorting to a ''desperate effort to buy consciences'' that was ''shameful for public life and showed contempt for the citizens''.

ND's leader said his party had proposed measures, such as a cheaper fuel for farmers and reduced VAT on farm machinery that had been rejected by the government.

Responding to the main opposition leader's comments, government spokesman Christos Protopapas said Karamanlis had been ''filled with confusion and panic'' by the ''800 billion drachmas announced by the government''.

''Powerful Greece is using the surplus given by growth to take care of its citizens, starting with those that have the greatest need,'' Protopapas claimed.

He noted that the Inner cabinet had been unanimous in approving the measures proposed by Finance Minister Nikos Christodoulakis and that the meeting had focused on the need for members of the government to have strong arguments linking growth with more active social policy.

According to Protopapas, Greece had been converging with the EU average in social spending since 1996 and now spent more than the average. He also announced that the 'social package' measures would begin to be implemented from January 1, 2004 except for the cheap fuel for farmers and reduced taxes on cars that will go into effect from next month.

The measures announced were also slammed by smaller left-wing parties, such as the Communist Party of Greece (KKE) and the Democratic Social Movement (DHKKI) as ''small change'' and ''crumbs and promises''.

According to KKE, the rise in meager farmer’s pensions and the EKAS income supplement was already dissipated by rises in public utility rates, while the rise in unemployment benefits did not even begin to cover the basic needs of the unemployed. As for the other measures announced by the government, KKE said these would have minimal impact on the real needs and problems of their beneficiaries.

[02] Critical period for foreign policy ahead, Papandreou says on 'Flash' radio

Athens, 03/09/2003 (ANA)

''Foreign policy did not come to an end with [the Greek EU] presidency or with Cyprus' accession [to the EU],'' Papandreou noted during the interview, pointing out that important prospects were opening up a solution to the Cyprus problem, in Greek-Turkish relations and for stabilization and economic development in the Balkans.

''I predict that developments of the next months will be extremely significant, since apart from the formal accession of Cyprus to the European Union in May 2004, in December 2004 there will be the final assessment of Turkey's course and whether or not to begin negotiations to make [Turkey] a member of the European Union,'' he noted.

Part of this assessment would include a careful look at a number of issues apart from internal reforms carried out within Turkey, such as progress in the Cyprus issue and in Greek-Turkish relations, he said.

''This means that we are before important, highly important developments, in issues of historic importance for us,'' the minister added.

During the interview, Papandreou confirmed that his Turkish counterpart Abdullah Gull was due to visit Athens for the established twice-yearly bilateral talks in the Autumn. He said the meeting would cover a review of Greek-Turkish relations, Turkey's European course and the Cyprus issue, in addition to peripheral issues such as Iraq, the Balkans and the Middle East.

At another point, Papandreou noted that developments in the Middle East and Iraq might well have a crucial impact on both international developments and the neighborhood of Greece.

''We are seeing developments that are painful, not just for the region there but for the entire world, since we are talking about the radicalization of populations - which are either Arabic or Moslem countries''.

In addition, he noted that Greece had a role in the important developments and challenges within the EU, such as the drafting of a new EU Constitution.

On domestic issues, Papandreou said the time had come for ''serious, major decisions'' for radical changes to the ruling PASOK party in order to create a party that was ''open, democratic, and modern, that every citizen could feel to be their own.''

According to the minister, the party had so far moved at a snail's pace in making such changes and he declared himself a warm supporter of the current debate on reforms within the party.

[03] Premier receives ruling PASOK party secretary

Athens, 03/09/2003 (ANA)

Following their meeting, Chrysohoidis said that ''social justice, through policies of redistribution of the national wealth, remains a steady value for our party. This orientation of PASOK, which was announced today and was sealed with the announcements and decisions of the Prime Minister, reaffirms, once again, the character of PASOK''.

''More so these views are in full opposition to the conservative party, which is willing to sacrifice the social interests to the alter of the market. We remain steadfast to the values of social justice, to the values of solidarity,'' he concluded.

[04] FM receives US Congresswoman, discusses western Balkans

Athens, 03/09/2003 (ANA)

Sanchez is currently touring southeastern Europe.

Papandreou and the US congresswoman discussed issues concerning the combating of terrorism and the course of US-Greek relations.

Following the meeting, Papandreou received a delegation of the world inter-parliamentary union of expatriate Greek politicians, with talks focusing on the contribution of overseas Greeks towards the holding of the Athens 2004 Olympic Games and the "Olympic Truce" initiative.

Kaklamanis receives Sanchez: Parliament President Apostolos Kaklamanis on Tuesday received US Congresswoman Loretta Sanchez (D-Calif.) at his office, with discussions revolving around Iraq and the Mideast, as well repercussions for Europe and Greece.

Additionally, the Cyprus issue and Greek-American relations were discussed.

[05] Interior minister's list of EU's regions committee approved

Athens, 03/09/2003 (ANA)

The term of office of the new delegation will last until January 2006.

The change of the committee was pursuant to the ratification of the Nice Treaty of the European Union.

[06] Ruling PASOK party to celebrate 29th anniversary on Wednesday

Athens, 03/09/2003 (ANA)

PASOK President and Prime Minister Costas Simitis will be the main speaker at the event and he is expected to call for unity and refer to the prospects of PASOK and the course of the party since 1974.

PASOK party Secretary Michalis Chrysohoidis will also address the event. In light of Wednesday's celebrations, on Tuesday, Chrysohoidis noted that ''the values expressed by PASOK, the popular sovereignty and the social liberation, became dominant values of Greek society''.

Using the term ''Change'' once again as the ''nucleus of the progressive character of the party'', Chrysochoidis said: ''PASOK is against stagnation and conservative values, it adapts to the demands of the times and goes forward along with the great social majority of the country and with international develop-ments.''

[07] Deputy FM meets with expatriate Greek politicians

Athens, 03/09/2003 (ANA)

He briefed them on the actions of Greece on the subject of the past six months, making special mention of the Greek EU presidency that took place during the first half of the year.

He also focused on Greek-Turkish affairs, the Cyprus issue and EU-Turkish affairs.

[08] Greek unemployment fell to 8.9 pct in second quarter

Athens, 03/09/2003 (ANA)

NSS said the April-June figures were the lowest quarterly figures ever.

The figures also showed that unemployment among men was 5.7 percent while the figures soared to 13.6 percent among women.

Western Macedonia (15.7 percent), Epirus (10.6 percent), Eastern Macedonia-Thrace (10.3 percent) and Central Macedonia (9.9 percent) recorded the highest unemployment rates in the country, while Crete (4.8 percent), Peloponese (6.8 percent) and Northern Aegean (7.0 percent) recorded the lowest unemployment rates.

Compared with the second quarter of 2002 the unemployment rate has risen in Eastern Macedonia-Thrace, Western Macedonia and the Ionian islands, while it has fallen in Epirus, Thessaly and Attica.

The statistics service said that long-term unemployed (more than 12 months) accounted for 58.5 percent of total unemployed. NSS said that 39.8 percent of registered unemployed said they preferred full employment, while 48.5 percent said they were willing to work either full or part-time jobs.

The statistics service said that total employment rose 1.7 percent in the second quarter of 2003 compared with the same period last year.

Part-time employment accounted for 4.5 percent of total employment in the country.

[09] Greece suffers from high social imbalances, report says

Athens, 03/09/2003 (ANA)

He was commenting on the findings of a report compiled by the Labor Institute INE which showed that the income of Greece's 20 percent more rich people was 6.2 times more than the income of the 20 percent less rich. Only Portugal (6.4) and Estonia (6.3) were showing highest imbalances, the report said.

INE's report also showed that while incomes imbalances grew, the Greek economy was improving (higher GDP and investments, increased labor productivity) and the country's profitability index was steadily rising since 1991 and that it was expected to surpass the 10 percent average of the so-called "golden period" between 1961-1973.

The report also noted progress in the convergence of the Greek economy with the EU's average, based on GDP per capita and the unemployment rate.

Gross real wages increased by 5.1 percent in 2002, reflecting a 4.1 percent rise in productivity and a 1.1 percent decline in labor costs (in real terms), the report said.

Inez’s scientific director, professor Savvas Robolis, presenting the report said that a rise in the inflation rate could be attributed to higher prices by Greek companies.

The base salary in Greece exceeded the average of the EU's new members but remained around 50 percent of the EU's wealthiest member-states, Mr Robolis stressed.

The report highlighted the supremacy of full employment in the country, although it noted that 55 percent of new hiring were made on terms of "flexible" or seasonal employment.

The report also said that recent changes in the social security system raised the prospects of a viability of the system until 2050.

It also showed that despite a rise in social spending in Greece, the state participation in social revenues fell to 29.1 percent (from 32.8 percent the previous year), employers' contribution rate was stable at 38.1 percent, while workers' contributions rose by 2.3 percentage points.

Mr Polyzogopoulos urged for a five-year program to deal with social imbalances in the country.

[10] Greece's cosmetics market grows strongly, report

Athens, 03/09/2003 (ANA)

The survey said that skin protection products accounted for the biggest part of the market in 2002 with a market share of 46.2 percent, followed by hair care, make-up and fragrance products.

ICAP's report showed that around 47.3 percent of total domestic consumption in 2002 was made through a wide distribution network (supermarkets, self-service stores).

The report said that the cosmetics sector in Greece was very dynamic, with the value of domestic consumption in wholesale prices - excluding children products - raising an annual average 13.6 percent in the period 1993-2002, reflecting a rapid increase in imports.

Greek exports, however, also rose with an average annual rate of 26.9 percent in the period 1998-2002.

[11] Central Europeans see Greece as most favorable tourist destination

Athens, 03/09/2003 (ANA)

According to these figures, in Slovakia, Greece is considered the most favorable tourist destination followed by Croatia and Turkey, in the Czech Republic, Greece ranked third after Croatia and Spain, in Poland, Greece also ranked third after Germany and the Czech Republic and in Hungary, Greece ranked first followed by Italy and Croatia.

[12] Civil aviation workers to strike Thursday over new Olympic Airways

Athens, 03/09/2003 (ANA)

The stoppage on Thursday is timed to coincide with a vote on the bill in parliament.

The federation said in a statement that the government had backtracked on pledges including the status of employees after the corporate overhaul

[13] Greek stocks suffer heavy losses on Tuesday

Athens, 03/09/2003 (ANA)

The general index ended 2.11 percent lower at 2,150.48 points, off the day's lows of 2,135 points, with turnover a heavy 209.1 million euros.

All sector indices suffered losses with the Insurance (5.49 percent), IT Solutions (4.68 percent), Publications (4.41 percent) and Base Metal (4.18 percent) sectors recording the heaviest percentage losses of the day.

The FTSE/ASE 20 index for blue chip and heavy traded stocks fell 2.35 percent, the FTSE/ASE MID 40 index ended 2.07 percent down and the FTSE/ASE SMALLCAP 80 index dropped 3.12 percent.

Broadly, decliners led advancers by 309 to 39 with another 18 issues unchanged.