Athens News Agency: Daily News Bulletin in English, 03-09-16

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

CONTENTS

[01] Gov't presents its proposals for reforming electoral law

[02] PM to meet visiting Cyprus president on Tuesday

[03] FM Papandreou in US for talks with top leadership

[04] Greece's disagreement with Israeli decision to expel Arafat reiterated

[05] Gov't spokesman on euro referendum in Sweden

[06] China's deputy chief of general staff to visit Athens

[07] PASOK MPs mostly toe the line on revealing stock market transactions

[08] Gov't denies receiving letter from Patriarch Vartholomeos

[09] DM says key steps taken to upgrade public administration

[10] PM inaugurates commercial operation of Hellas-Sat

[11] Social spending in Greece reaches EU average, report says

[12] FinMin comments on reduced VAT plan

[13] PM Simitis chairs meeting on Community Support Framework

[14] Strong EU needs bold decisions, Greek FinMin says

[15] Eurozone recovery delayed until 2004, ECOFIN says

[16] Gov’t announces measures to combat price increases

[17] Eurostat report on Greek fiscal, public deficits in 2002

[18] ND leader Karamanlis meets with shipping representatives

[19] Greek EU official wants to see pension rights intact after job changes

[20] Phillip Morris to pay 17.97/18.02 euros per share for Papastratos stake

[21] Atlantic Bank to acquire business of Allied Irish Banks NY branch

[22] Greek, Cyprus ministers meet over merchant marine issues

[23] Government to give salary increases to secondary education teachers

[24] Greek stocks end sharply lower on Monday

[25] President Stephanopoulos visits Olympic Games installations

[26] Attorney for US victims of N17 presses for guilty verdicts

[27] Gov't expected to announce measures for illegal buildings on Thursday

[28] Two policemen killed in traffic accident outside Megara

[29] Free public transport on Tuesday as part of 'European Mobility Week'

[30] College professors threaten to strike over pay demands

[31] President Stephanopoulos inaugurates 32nd book festival in Athens

[32] Five disabled athletes to attempt swim across Aegean

[33] President Papadopoulos in Athens to hold talks with Simitis

[34] Cyprus urges Israel to rescind its decision to expel Yasser Arafat

[01] Gov't presents its proposals for reforming electoral law

Athens, 16/09/2003 (ANA)

According to the announcement, the changes aim to simplify the system for parliamentary elections and strengthen the element of proportional representation, while retaining measures to boost the leading parties and produce strong governments.

As expected, the current 3 percent ''platform'' required for parties to elect an MP to Parliament is to be retained, while the government wants to abolish an article in the previous law that militates against pre-election alliances by only allowing single-party formations to benefit from first-party 'bonus' seats.

The government has also placed changes to the number and type of electoral districts on the table for discussion, such as dividing the very populous electoral districts in Athens and Thessaloniki into smaller districts electing up to nine or eight seats, or creating enlarged electoral districts corresponding to ''developmental or administrative'' regions in the country, in addition to the traditional electoral districts, that will be represented by 60 seats in the house.

Overall, it proposes that up to 80 or 85 per cent of the seats in the house will be divided among the parties using a system of proportional representation, and offers two alternative methods for awarding the remainder to the first and second parties, respectively.

The proposals in detail: The text suggests a number of alternative methods and systems for calculating and allocating seats that will be discussed by a cross-party committee that is due to convene on Wednesday.

Under the first alternative, 240 or 80 per cent of the seats in Parliament will be shared out among the parties according to the nationwide proportion of the vote and the remaining 60 will be divided among the first and second-highest parties in a ratio of 4:1 or 48:12.

In the second alternative, 255 seats in the house or 85 per cent are shared out among the parties according to their nationwide share of the vote and the remaining 45 will all be allocated to the party with the highest nationwide percentage.

The committee will also be called to discuss the details of calculating seats for each electoral region, ranging from a first-past-the-post system in one-seat districts to an 'electoral quotient' system for multi-seat districts.

The draft proposals also contain two alternative proposals with regard to electoral districts:

The first proposes retaining the basic electoral districts based on prefectures as they exist today with 12-15 state deputies, while the second proposes scrapping the institution of state deputies and replacing these with 60 MPs to represent 'enlarged' electoral districts to be chosen from a list presented by each party, with 240 MPs elected from the basic electoral districts.

The 60 seats for enlarged electoral districts might either represent the 13 administrative regions in the country or seven to eight wider 'developmental' regions.

The proposals also call for dividing the inner Athens electoral district into two, the greater Athens electoral district into five, the remainder of Attica into two electoral districts and central Thessaloniki district into two.

Each of the smaller districts will elect up to nine seats if the current system is retained or up to eight if the 'enlarged' electoral district system is adopted.

The talks will also cover other issues, such as whether voters will be allowed to vote for individuals outside the party of their choice, the number of candidates in basic electoral regions etc.

[02] PM to meet visiting Cyprus president on Tuesday

Athens, 16/09/2003 (ANA)

Papadopoulos arrived in Athens for two-day working visit on Monday afternoon, shortly after a teleconference with Simitis at 13:00 during the ceremony inaugurating the operation of the Hellas-Sat 2 Greek-Cypriot satellite.

The Cyprus president will also pay a visit to Parliament President Apostolos Kaklamanis on Tuesday, after his talks with Simitis.

On Wednesday, the prime minister will attend a session of the Youth Parliament, after which he will chair a meeting with Finance Minister Nikos Christodoulakis and Deputy Finance Minister Christos Pahtas, with the successive participation of Development Minister Akis Tsohatzopoulos, Labor Minister Dimitris Reppas, Environment Minister Vasso Papandreou and Health Minister Costas Stefanis to discuss the implementation of the 3rd Community Support Framework (CSF).

On Wednesday evening at 19:00, Simitis is to meet the environment minister to prepare for the regular cabinet meeting on Thursday, which will focus on town planning issues.

After the cabinet meeting, the premier will chair a meeting to prepare his tour of Thesprotia on Friday, during which he will visit the new dock and courthouse at Igoumenitsa.

Earlier on Monday, the premier chaired a meeting with ministers involved in wrapping up the 2nd CSF, while on Monday evening he will head a meeting with Education Minister Petros Efthymiou, Christodoulakis and Deputy Education Minister Nikos Farmakis regarding a threatened wave of strikes in the educational sector.

[03] FM Papandreou in US for talks with top leadership

WASHINGTON, 16/09/2003 (ANA – T. Ellis)

Papandreou will also meet with State Department special coordinator for the Cyprus issue and veteran diplomat Thomas Weston.

Contacts with members of the influential US Senate foreign relations committee are also planned, as the issues of security for the 2004 Athens Olympics and the Cyprus question are expected to dominate talks.

On the sidelines of his meeting, Papandreou will be honored by the Parliamentarians for Global Action group, which includes lawmakers from 105 legislatures around the world.

[04] Greece's disagreement with Israeli decision to expel Arafat reiterated

Athens, 16/09/2003 (ANA)

Protopapas reiterated that Arafat was the lawful representative of the Palestinian people, and warned that Israel's decision "puts the peace process at risk".

Calling on "all sides" to "commit themselves to materialization of the Roadmap and to undertake their responsibilities", Protopapas noted that the Palestinian authorities must clamp down the organizations carrying out terrorist actions, while Israel needed to not place the region in greater danger through its decisions.

[05] Gov't spokesman on euro referendum in Sweden

Athens, 16/09/2003 (ANA)

The spokesman, Christos Protopapas, noted the 'great importance' of the euro in the field of transactions and development, adding, however, that a prerequisite for those advantages to be reaped was participation of the countries in the common European currency.

[06] China's deputy chief of general staff to visit Athens

Athens, 16/09/2003 (ANA)

During the September 16-20 visit, Lt.-Gen. Zhang was due to meet with national defense deputy minister Lazaros Lotidis and with the defense ministry's military leadership to discuss issues of mutual military interest, the announcement said.

[07] PASOK MPs mostly toe the line on revealing stock market transactions

Athens, 16/09/2003 (ANA)

Sources said that nearly all had submitted such a statement to PASOK Parliamentary group secretary Nikos Levoyiannis, even many of those that had originally objected to the premier's decision.

PASOK MP for Zakynthos Dionysis Gouskos and Thessaloniki MP Stelios Papathemelis, however, sent a letter to Parliament Speaker Apostolos Kaklamanis stating that they had nothing to report that was not already in their 'statement of means' declarations, while Attica MP Theodoros Pangalos sent a letter to the prime minister stating that he had no stocks or shares.

The statements are to be handed over to the Capital Markets Commission within the week, while the inspection process is expected to be over by Christmas since most MPs either have either not carried out any stock market transactions or have kept their stock portfolios 'frozen'.

Asked to comment on the process, government spokesman Christos Protopapas noted that the deadline for submitting the 'statement of means' declarations and accompanying stock market transaction reports did not expire until Monday night and that it was too soon to say anything.

He stressed that PASOK had nothing to hide or fear and predicted that there would be no problems regarding the response to the Prime Minister's initiative.

Levoyiannis told reporters later on Monday that only one MP had failed to submit the statement, and this because he was out of town. He said that those MPs that chose to address letters to the prime minister or Parliament Speaker where covered by this action.

[08] Gov't denies receiving letter from Patriarch Vartholomeos

Athens, 16/09/2003 (ANA)

According to press reports, the letter asked for the prime minister's intervention in the altercation between the Patriarchate and the Orthodox Church of Greece.

"All these ecclesiastical issues are delicate, there are discernable boundaries and the government has no intention of intervening," Protopapas said.

[09] DM says key steps taken to upgrade public administration

Athens, 16/09/2003 (ANA)

Papantoniou was speaking at an event organized by the Union of Greek Banks.

''Mismanagement is a stumbling block for development and the exercising of social policy. Reforms are necessary at all levels to enable the upgrading of administrative apparatus' effectiveness,'' he said.

[10] PM inaugurates commercial operation of Hellas-Sat

Athens, 16/09/2003 (ANA)

Apart from Papadopoulos, the prime minister was also linked directly with the commander of a Greek peace-keeping unit stationed in Afghanistan, Major Miltiades Kolatos, and the mayor of the remote Aegean islet of Fourni, Yiannis Manousis.

In an address at the ceremony, Simitis stressed that Greece was now among the countries with an active presence in space and that the satellite was a decisive step toward inducting Greece into the information and knowledge society.

He said Hellas-Sat would be a vital tool in the successful organization of the Athens Olympics in 2004 and would cover new needs created by the full deregulation of telecommunications in Greece.

Simitis also announced that Greece will soon become one of the countries that have a space program and congratulated all those who contributed to the success of the Hellas-Sat program.

Telecommunications Minister Christos Verelis referred to the many benefits that the satellite's operation will bring to Greece, noting that it was expected to earn 100 million euros for the Greek State during the 17 years that it will be in orbit and that it opened a ''new page and a new era'' for telecommunications in Greece.

Hellenic Telecommunications Organization (OTE) director Lefteris Antonakopoulos said the satellite would give OTE a salient advantage in the European market and be an important aid in the organization of the Olympics.

The ceremony was also addressed by Cypriot Works and Transport Minister Kikis Kazamias and attended by Defense Minister Yiannos Papantoniou, who said the entire Armed Forces command and control system would henceforth be carried out via the satellite, which would allow instant high-quality communication during war or a crisis and give Greece an important strategic advantage.

Hellas Sat: The result of close cooperation between the Greek and Cypriot governments, the Hellas Sat

satellite was designed by Yiannis Karras, constructed by Astrium and launched on May 13, 2003 from Cape Canaveral, taking its position in orbit at 37,500 kilometers.

It will provide secure telecommunications coverage for all of Greece and Cyprus and about 25 countries in the surrounding regions, with the capacity to handle telephony, Internet, telemedicine, defense and digital television applications.

Due to a highly successful launch that brought it to the correct position very quickly, thus saving fuel, the satellite's lifespan has been extended by an additional two years to 17.

It was produced at a cost of 170 million dollars and is capable of covering areas in the Balkans, west and central Europe, as well as part of Asia and Africa.

[11] Social spending in Greece reaches EU average, report says

Athens, 16/09/2003 (ANA)

The National Statistics Service said that social spending rose steadily in the last few years from 26.1 percent of GDP in 2000 to 27.2 percent in 2001 and to 27.7 percent last year, compared with an average 27.3 percent of GDP in the European Union (2000 figures).

Greek Economy and Finance Minister Nikos Christodoulakis, commenting on the figures, said that Greece has already converged with the European Union in social protection spending.

NSS said that social spending, in stable drachmas, exceeded one million per capita in 1999, recording a 57.6 percent increase from 1995, the highest growth in the European Union.

Spending rose 5.9 percent in 2002, 8.3 percent in 2001, 7.7 percent in 2000, 8.2 percent in 1999 and 7.3 percent in 1998 in Greece.

Total social spending was 39.2 billion euros in 2002, up 9.9 percent from the previous year.

[12] FinMin comments on reduced VAT plan

Athens, 16/09/2003 (ANA)

Speaking to reporters, Mr Christodoulakis, said that if the plan was approved by EU member-states, the introduction of VAT on new homes in Greece would be made on an 8.0 percent tax factor and not 18.0 percent as currently envisaged by community legislation.

The Greek minister said that a decision was expected in the next eight months.

Commenting on provisions of tax-breaks in a "social package" of measures recently announced by the Greek government, Mr Christodoulakis stressed that "tax breaks are not taboo, but reviewed, abolished or introduced from time to time".

He reiterated that the government was not planning any changes in taxation for next year.

[13] PM Simitis chairs meeting on Community Support Framework

Athens, 16/09/2003 (ANA)

No statements were made by Christodoulakis and Papandreou, while Pachtas briefed reporters that procedures for preparation of the 4th package (CSF) and the closing of the 2nd package had been discussed.

The government's goal for the 2007-2013 period (4th CSF) was to reinforce the periphery and eliminate regional inequalities, Pachtas said.

With respect to the 2nd CSF, he said, to date a total of 30 percent of the annual payments had been received while another 20 percent was due to be received at a later date.

Pachtas further said that several meetings have been planned this week to discuss the course of the 3rd CSF and ways of accelerating the projects and actions incorporated in it.

[14] Strong EU needs bold decisions, Greek FinMin says

Athens, 16/09/2003 (ANA)

The Greek minister stressed that the result of the vote was unfair to the euro currency and noted that the European issue and its prospects were a procedure demanding the integration of "give-and-take" policy between each member-state and the EU.

"The negative result is attributed either to bad timing or because voters had the feeling that euro entry could lead to hardships," Mr Christodoulakis said.

He added that the euro currency offered a strong shield to its members during the war in Iraq.

[15] Eurozone recovery delayed until 2004, ECOFIN says

Athens, 16/09/2003 (ANA)

Greek Economy and Finance Minister Nikos Christodoulakis, speaking to reporters on Monday, said that ECOFIN generally agreed that economic recovery in the eurozone and the EU was delayed and that the region's gross domestic product (GDP) would not exceed 0.7 percent in 2003.

Mr Christodoulakis said that EU finance ministers delayed the recovery for next year when GDP growth was expected to reach 2.0 percent.

The Greek minister stressed that both the European Commission and the European Central Bank agreed that the US economy would outperform the EU's for one more year, with growth rates of 2.4 percent this year and 3.7 percent in 2004.

Saturday's ECOFIN also discussed the fiscal conditions in the EU and a proposal by the European Commission to broaden the use of Value Added Tax. The French Finance Minister Francis Mer stressed that the Stability Pact should be respected but also exploiting all flexibility possible. Other finance ministers urged Germany and France to contain their fiscal deficits to avoid undermining confidence in the euro currency.

[16] Gov’t announces measures to combat price increases

Athens, 16/09/2003 (ANA)

Development Deputy Minister Kimon Koulouris announced it was referring Greek tobacco manufacturers to the Competition Commission for allegedly - unjustifiably - raising their prices by 8-9 percent.

The Greek minister also announced a series of disciplinary measures, which included

imposition of heavy fines, against several companies accused of overcharging fresh produce, and imposing limits on wholesale and retail profit margins (7.0 percent and 22-25 percent, respectively) in the trading of potatoes, oranges, apples and peaches.

All manufacturing companies with an annual turnover of more than 7.3 million euros are obliged to notify with the Development ministry 30 days in advance of any price changes.

[17] Eurostat report on Greek fiscal, public deficits in 2002

Athens, 16/09/2003 (ANA)

The EU executive's statistics agency, in its reviewed figures for 2002, said that public spending totalled 48.5 percent of GDP (48.3 percent in the eurozone and 47.4 percent in the EU-15), while public revenues totalled 45.4 percent of GDP (46.1 percent in eurozone and 45.4 percent in the EU-15).

Germany and France recorded the highest fiscal deficits among the European Union's 15 member-states last year, exceeding a three percent limit envisaged by the Stability Pact, Eurostat said in its report.

They were followed by Portugal (2.7 percent) and Italy (2.3 percent). Finland (4.2 percent), Luxembourg (2.5 percent), Denmark (2.1 percent) and Sweden (1.3 percent) recorded the biggest fiscal surpluses, while the eurozone average was 2.2 percent and the EU-15 average was 1.9 percent in 2002.

Eurostat said that Greece recorded the third highest public debt in the EU (104.7 percent of GDP) after Italy (106.7 percent) and Belgium (105.8 percent), while Luxembourg the smallest public debt (5.7 percent of GDP). Eurozone's average was 69 percent, while EU-15 average was 62.3 percent in 2002.

Finland recorded the highest primary surplus in 2002 (6.4 percent of GDP), while Germany recorded a primary shortfall of 0.4 percent. Both the eurozone and the EU-15 recorded a primary surplus of 1.4 percent in 2002.

[18] ND leader Karamanlis meets with shipping representatives

Athens, 16/09/2003 (ANA)

Karamanlis noted that tax and other reliefs needed to be introduced in order to strengthen the competitiveness of Greek maritime vessels, and promised to back the interests of Greek merchant shipping in Europe, with respect for the environment and the international treaties, through the reform of maritime education in order to attract youths to the profession, and with a 'genuine' social insurance reform through reduction of the employers' and employees' contributions and the finding of funds to cover the deficit of the Seamen's Pension Fund (NAT).

Present at the meeting where Union of Greek Shipowners (UGS) president Nikos Efthymiou, chairman of the London-based Greek Shipping Cooperation Committee Epaminondas Embiricos, and president of the Maritime Chamber Spyros Alexandratos.

[19] Greek EU official wants to see pension rights intact after job changes

BRUSSELS,16/09/2003 (ANA/G.Zitouniati)

Diamantopoulou, Greece's commissioner, was speaking after release of an EU guideline that urges member states to ensure security of rights for changes in employment, or residence in another country in the bloc.

Compliance would mean that employers and unions should align their vocational pension systems to ensure the preservation of rights, the guideline said.

[20] Phillip Morris to pay 17.97/18.02 euros per share for Papastratos stake

Athens, 16/09/2003 (ANA)

Acquisition of the stock is subject to approval by regulatory authorities, the companies said in a statement on Monday.

[21] Atlantic Bank to acquire business of Allied Irish Banks NY branch

Athens, 16/09/2003 (ANA)

The branch represents AIB’s sole retail banking office in the US.

Upon completion of the transaction, Atlantic Bank expects to assume operation of the Park Avenue branch as part of its more than 20 branch office network.

The transaction, which is subject to the receipt of appropriate regulatory approval and other customary conditions of closing, is expected to be finalized during the fourth quarter of this year.

This transaction follows a decision by AIB and M&T Bank not to proceed with their previously announced sale of the Park Avenue branch office. Financial terms were not disclosed.

Commenting on the transaction, William Strickland, AIB’s Executive Vice President and General Manager, stated, ''The sale of our Retail Branch business to Atlantic Bank is very good news for our employees, customers and community,''.

Thomas M. O’Brien, President and Chief Executive Officer of Atlantic Bank, said: ''The acquisition of AIB’s Retail Branch office and related business represents an excellent opportunity to expand Atlantic Bank’s retail branch presence and our small- to middle-market business franchise in the Manhattan market.''

Established in 1926, Atlantic Bank of New York is one of the top 20 commercial banks serving the New York area.

With over $3.0 billion in assets, Atlantic Bank is a full-service commercial bank providing a comprehensive range of financial services to small- and mid-sized businesses, commercial real estate investors and consumers.

The Bank operates 20 branch offices in Manhattan, Queens, Brooklyn, Long Island, Westchester, Duchess and Boston.

Atlantic Bank has more than $57 billion in assets and operates in 17 countries.

AIB Group is Ireland’s leading banking and financial services organization. It operates principally in Ireland, Britain, the USA and Poland, and has assets of more than $86 billion.

[22] Greek, Cyprus ministers meet over merchant marine issues

Athens, 16/09/2003 (ANA)

Expectedly, a variety of maritime and sea transport issues were discussed, including reciprocity and application of the principles of fair competition.

[23] Government to give salary increases to secondary education teachers

Athens, 16/09/2003 (ANA)

Prime Minister Costas Simitis chaired a meeting on pay claims by elementary and secondary education teachers. Among others, the meeting was attended by Education Minister Petros Efthymiou and Finance and Economy Minister Nikos Christodoulakis.

At the end of the meeting, Christodoulakis announced salary increases ranging between 40,000 and 57,000 drachmas a month.

The government's decision apparently does not satisfy teachers, while union circles let it be understood that teachers are considering strike action scheduled for October 6-7.

[24] Greek stocks end sharply lower on Monday

Athens, 16/09/2003 (ANA)

The general index ended 1.69 percent lower at 2,047.66 points, slightly off its session lows, with turnover a low 95.1 million euros.

The FTSE/ASE 20 index for blue chip and heavy traded stocks fell 1.68 percent, the FTSE/ASE MID 40 index dropped 2.71

percent and the FTSE/ASE SmallCap 80 index plunged 3.76 percent.

Derivatives Market Close: Turnover at 138.2 mln euros Monday

Equity Index Futures: