Athens News Agency: Daily News Bulletin in English, 04-09-11

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

CONTENTS

[01] PM Karamanlis inaugurates Thessaloniki International Fair, says Greece planning its next steps with optimism

[02] PASOK's Kastanidis says PM's speech 'a monument to unclear proclamations, contradictions and inaccuracies'

[03] PASOK leader chairs party meeting on economy, criticizes gov't

[04] Bulgarian FM on Athens-Sofia relations, successful 2004 Olympics

[05] SAE president to attend TIF, supports Thessaloniki's bid for EXPO 2008

[06] More airspace violations reported over Aegean

[07] EU finance ministers exchange views on reshaping of Stability Pact

[08] Greek economic weekly review

[09] Greek GDP rose 3.9 percent in second quarter

[10] Thessaloniki Chambers call for development actions in the region

[11] Centers for the Service of Citizens to receive extra funds

[12] Bourse rises on returning confidence in high-cap shares

[13] Paralympic Torch Relay works its way through Athens streets

[14] PM Karamanlis addresses Macedonian Museum of Modern Art exhibition

[15] Greek prosecutors to request information on Balco probe

[16] Two suspects charged with antiquities smuggling on Kalymnos

[17] Thessaloniki prefecture to be given 25,000 euros to protect birds at Lake Koroneia

[18] 9th Youth Parliament Session inaugurated

[19] Justice ministry official continues prisons tour with visit to Halkida closed prison

[20] Greek woman breaks world 'natural weight' free diving record

[21] Cyprus FM says EU Council's Legal Department opinion is 'catalytic'

[01] PM Karamanlis inaugurates Thessaloniki International Fair, says Greece planning its next steps with optimism

Athens, 11/9/2004 (ANA)

"Greece is planning its next steps with optimism. We are moving ahead on the basis of our realistic and responsible program, which was approved by the Greek citizens and which is our commitment to implement in the framework of the four-year term. The promise we have given applies in full," he said.

The prime minister said the main target of his policy is growth throughout the entire country and in the countryside in particular.

"Our main aim is to release the creative forces of society to enable them to have the opportunity to produce, to create, to progress, to enable us to maximize the product produced and to achieve its fairer distribution. The economic, social, business and cultural revival of the countryside is the great challenge now," he added.

Karamanlis described the solving of citizens' day-to-day problems as being a target for the government, which aims at securing "a strong and just society, a society of confidence and security, a society with cohesion and solidarity."

Referring to the Athens Olympic Games, Karamanlis said "we must invest in the added value of the Games. We must attract investments and visitors. We must prove that the great Greek summer of 2004 is no parenthesis in our course. It is a milestone in the transition to the new era. A starting point for a new prospect."

He also mentioned the Paralympic Games, due to begin next week, saying that "our responding to our obligations towards individuals with a disability is an invitation to the societies and leaderships of the world. We must be 'present' at the stadiums where our fellow men will be struggling and exceeding their abilities."

The prime minister said stability and prosperity in the wider region is a vision, with Greece playing a leading role in the heart of the European Union, and reiterated his support for Turkey's European orientation.

"Our neighbors must know that we support their European orientation. We support the accession of Romania and Bulgaria by 2007. We support the European orientation of Turkey and the efforts of its government to adjust the country to the European (political and economic) acquis communautaire. We Greeks want a European Turkey. We look forward to the upgrading of bilateral cooperation and the full restoration of Greek-Turkish relations," he stressed.

Karamanlis also referred to the issue of Cyprus and reiterated his will to have a solution found, although he did not mention the Annan plan.

"All of us Greeks aim at a solution to the problem of Cyprus as soon as possible. We are all working and cooperating (in Athens and Nicosia) to maintain the keen interest of the international community in a solution which will really be workable and viable. A solution to the environment of security and cooperation which is offered by the European Union," he said.

The prime minister reiterated his support for the candidacy of Thessaloniki to host the EXPO 2008 exhibition, adding that he is determined to give the city the role it deserves in the wider region.

Karamanlis announced the establishment of civil centers, the building of new schools and the creation of an independent body to be responsible for the protection of the Thermaikos Gulf.

"I am well aware that you people of Thessaloniki have been hearing great words of great projects for years. I realize how skeptical you are entitled to be towards announcements and promises. We shall not be a party to the perpetuation of unreliability. The government has taken its decisions on the infrastructure projects that the city needs. And these decisions are crystal-clear," he further said.

The prime minister said a two-speed Greece has been created and this state of affairs cannot continue.

"We cannot speak of a better life for all citizens when the Greek countryside is left behind. This will come to an end here. The Greek countryside is a focal option for the four-year term of New Democracy. Now is the time of the Greek countryside. Our attention is directed at the countryside," he pointed out.

Lastly, Karamanlis announced support for small and medium-size enterprises (SMEs) with incentives and EU programs and a decrease in taxation, while reiterating that the government is forging ahead with a new aggressive farming policy.

[02] PASOK's Kastanidis says PM's speech 'a monument to unclear proclamations, contradictions and inaccuracies'

Athens, 11/9/2004 (ANA)

Kastanidis represented PASOK at the inauguration.

Kastanidis added that Karamanlis in general proclaims ideas such as "utilization of natural wealth and of comparative advantages of the regions," or "the improvement of the quality of life and the upgrading of the developing potential of each region" or "the strengthening of the extroversion of our economy."

"The prime minister wrongly claims that the government has made achievements about which nobody is aware of," Kastanidis concluded.

[03] PASOK leader chairs party meeting on economy, criticizes gov't

Athens, 11/9/2004 (ANA)

Papandreou criticized the government for endangering the Greek economy's stability and development, which he said were achieved over recent years.

He also said the government is sending data and figures on the economy only to Eurostat.

Papandreou, Simitis on same wavelength regarding government policy, restructuring of PASOK, Presidential election: Main opposition PASOK leader George Papandreou and former prime minister (PASOK) Costas Simitis "ascertained identity of views" on the restructuring of PASOK, the Presidential election in March, and on facing the government's policy, during a meeting Friday, according to reliable sources, which added that the meeting was held in "a very good, warm and friendly climate".

With respect to the Thessaloniki International Fair (TIF) and prime minister Costas Karamanlis' expected announcements, as well as the government's economic policy in general, the sources said that Papandreou and Simitis agreed that the present government was dealing with the country's problems in a patchwork manner, which created a climate of insecurity that was intensified by the lack of planning to take advantage of the Olympics projects and the auspicious climate for Greece arising from the country's successful staging of the Athens 2004 Olympic Games.

The same sources said that the two men further agreed on the necessity of immediate, active and constant confrontation of the government's policy, in the instances where popular conquests were being overturned or which created problems for the country, as well as in the case that issues that required immediate resolution were not being tackled.

On the restructuring of PASOK, the party's previous and current leader agreed that the main target was to project the party's political views, while they believe that the reorganization and restructuring of PASOK was of particular importance, and that the party should serve as an effective mechanism for defending the popular interests.

Regarding the Presidential election, Papandreou and Simitis shared the view that the talk on the issue at the present time was untimely, and agreed that the Constitutional provisions placed the political responsibility of the relevant initiatives to the ruling New Democracy party, as it had the majority in parliament, and consequently it was ND that must first express its views and table proposals, the sources said.

With respect to foreign policy, the two men noted that there was a tendency of Greece drawing away from European affairs, the sources continued.

The sources further said that no grievances were voiced by either Papandreou or Simitis during the meeting. It is recalled that recent press reports had said that Papandreou had complained to his close associates that he was being undermined by pro-Simitis cadres, while Simitis had complained to his own associates that PASOK, under Papandreou, was not adequately defending the accomplishments of his governments.

[04] Bulgarian FM on Athens-Sofia relations, successful 2004 Olympics

Athens, 11/9/2004 (ANA)

"I want to express my warmest congratulations to the Greek government and people for the outstanding success of the Olympic Games. We Bulgarians are proud of this success, just like it was our own success, and we are pleased along with the Greeks," Pasi said in a television interview given to Greece's state-run radio and television broadcaster (ERT)

"Between our countries there are no bilateral problems ... We don't have outstanding political problems, whereas our main concern is to expand economic cooperation even more," he said, adding that Greece is now the top investor in his country.

Pasi also expressed his confidence that Bulgaria will officially join the European Union on Jan. 1, 2007.

Finally, he also touched on prospects for eventually constructing the Burgas-Alexandroupoli oil pipeline between the two countries -- a project on the drawing boards since the early 1990s that generated a great deal of hype but no final agreement -- efforts to fight international terrorism and the Sofia government's strategy for attracting more foreign investment.

[05] SAE president to attend TIF, supports Thessaloniki's bid for EXPO 2008

Athens, 11/9/2004 (ANA)

"The Thessaloniki International Fair is undoubtedly a major event with great importance for promoting Greece throughout the world," Athens noted while visiting Thessaloniki on Friday.

"After the absolutely successful organization of the Olympic Games, Greece has achieved international recognition. Knowing that good trade relations make the best possible contribution to developing ties of friendship between nations, the SAE and I personally have made a commitment to support with all our power in the countries where we live Thessaloniki's bid to host the EXPO 2008 trade fair," Athens added.

During his stay in Thessaloniki, the SAE president met Alternate Foreign Minister Yiannis Valinakis at the SAE offices in the city and Deputy Foreign Minister for expatriate affairs Panagiotis Skandalakis.

[06] More airspace violations reported over Aegean

Athens, 11/9/2004 (ANA)

Up to 10 Turkish warplanes infringed on Athens FIR regulations, and in some cases, violated Greek national airspace.

Greek fighter planes intercepted all 12 intruding Turkish aircraft, whereas three interceptions turned into mid-air engagements.

According to reports, two Turkish warplanes were armed, whereas another four were identified as RF-4 "Phantom" reconnaissance fighter planes.

[07] EU finance ministers exchange views on reshaping of Stability Pact

The European Union's finance and monetary affairs ministers, during the first day of their informal ECOFIN Council meeting here on Friday, exchanged views on the European Commission's proposals on reshaping the Stability Pact and, according to Dutch Chairman Gerit Zalm, agreed in general that the proposals form a good starting point concerning the issue of consultations which, however, are not expected to end this year.

The Council also adopted a statement concerning the situation of statistics in economic and monetary union, which said that the Council reiterates its view that the compilation and reporting of budgetary statistics must not be vulnerable to political and electoral cycles.

It added that in the case of Greece, it is of utmost importance that a clear and true picture of the situation is arrived at soon and the necessary conclusions are drawn.

Finance and Economy Minister George Alogoskoufis said the Commission's ideas are constructive, adding that whatever changes are agreed upon must not harm the Pact's basic principles, but must concern its operational processes.

Alogoskoufis also said the Pact's main targets, meaning keeping the fiscal deficit below three percent of GDP and the stable de-escalation of the public debt, with the target being 60 percent of GDP, should not be altered.

He added that he and his counterparts from Belgium and Italy (the countries having the highest public debts) made it clear that they will not agree to the Commission's proposal on upgrading the special weight the issue of a member-state's public debt has on the Pact.

It is reminded that the Commission has proposed that member-states having big public debts, as well as countries having excessive public deficits, must be dealt with, which is not compatible with the letter and spirit of the Stability Pact.

As regards time limits which must be provided for member-states with excessive deficits to return to the path of fiscal stabilization, the "25" did not appear ready to agree on the Commission's proposals.

Alogoskoufis stressed during his address that structural changes are frequently required which, as usual, do not produce short-term but medium-term results and, consequently, those in charge of economic policies must have ample time to promote and evaluate the results of these structural policies.

On the question of what will happen with countries having excessive deficits, Alogoskoufis said that in the case of Greece the discussion at the Council will be taking place in early November.

[08] Greek economic weekly review

Athens, 11/9/2004 (ANA)

Labor Minister Panos Panayiotopoulos announced two significant measures of social policy on Thursday, offering higher subsidy for housing loans' interest and a significant cut in the maximum pay for all eligible in purchasing a house included in the Olympic Village to 850 euros per square meter from 1,510 euros initially.

Agricultural Bank of Greece announced it was cutting interest rates on existing non-performing loans to 5.0 percent from 8.0 percent and extending the repayment period to 10 years.

Athens hotels reported mixed figures in occupancy rates in July, with five-star and three-star hotels' occupancy rates rising to 43.49 percent and 65.03 percent, respectively, and four-star and two-star hotels' occupancy rates falling to 35.86 percent and 35.38 percent over the same period.

Greek annual inflation slowed to 2.7 percent in August from 2.9 percent in July with the National Statistics Service forecasting that the inflation rate would be around 3.0 percent by the end of the year.

Bank of Greece's governor Nikos Garganas expressed his optimism over the country's growth prospects saying that a slowdown recorded in the second quarter in 2004 would be easily reversed in the next two quarters of the year. The central bank stressed, however, that maintaining high growth rates would depend on the promotion of infrastructure projects in regional Greece. The Bank of Greece urged domestic financial institutions to impose stricter criteria in approving loans and take higher risk provisions, after reporting that non-performing consumer and housing loans totalled 2.5 billion euros.

The government will follow a policy of mild adjustment, Development Minister Dimitris Sioufas said this week announcing the inclusion of 771 investment projects by small and very small enterprises in a government sponsored program called Competitiveness. The projects are budgeted at 163.1 million euros.

Agricultural Development and Foods Minister Savvas Tsitouridis rejected any price rises in bread and other products saying that wheat prices were currently 20 percent lower this year compared with 2003 and urged producers to follow this trend in their retail prices to consumers.

The board of Hellenic Stock Markets SA this week selected Spyros Kapralos as its new chairman and chief executive. Kapralos is currently serving as secretary-general for the Olympic Games with the Culture ministry.

[09] Greek GDP rose 3.9 percent in second quarter

Athens, 11/9/2004 (ANA)

NSS, in its regular report, said that the April-June strong figures reaffirmed the economy's high growth rates this year and noted that the final consumption spending rose 3.4 percent compared with the same period in 2003, slightly down compared with a 3.5 percent figures in the first quarter of 2004.

Investments recorded a 5.0 percent growth rate in the second quarter, down from 5.1 percent in the previous quarter and 9.4 percent in the same period last year. Exports rose 6.0 percent in the April-June period, reversing a 6.5 percent fall in the first quarter and sharply up compared with a 0.4 percent increase in the same quarter in 2003. Imports rose 4.0 percent, up from a 0.8 percent increase in the first quarter and a 2.6 percent in the second quarter last year.

[10] Thessaloniki Chambers call for development actions in the region

Athens, 11/9/2004 (ANA)

In memorandum submitted with the two ministers, the chambers called for inclusion of Thessaloniki in an Incentives Zone, reforming tax system and development legislation, abolishing all obstacles in the access of SMEs to the country's financial system and all Community Support Framework programs and to take measures to deal with illegal commerce and informal economy.

The chambers also called for projects to strengthen the city's infrastructure. They emphasized on efforts needed to help Thessaloniki's bid to organize the EXPO 2008 World Fair, an event that would contribute greatly in the development of the city.

Sioufas told representatives of Thessaloniki business world that "regional Greece was a first priority in the government's development policy" and stressed that "small- and medium-sized enterprises was and always will be the steam engine of the Greek economy".

[11] Centers for the Service of Citizens to receive extra funds

Athens, 11/9/2004 (ANA)

The announcement was made on Friday by Deputy Internal Affairs, Public Administration and Decentralization Minister Apostolos Andreoulakos during the inauguration of the first KEP at the municipality of Pylea.

The minister noted that "the government will secure the sum of 16 million euro until 31-12-2004," adding that next year the cost of operating the KEP throughout the country will amount to 90 million euro.

[12] Bourse rises on returning confidence in high-cap shares

Athens, 11/9/2004 (ANA)

The Athens general share index closed at 2,328.71 points, rising 0.68 percent in the day. Turnover was 91.2 million euros.

The FTSE/ASE-20 index for high capitalization shares jumped 0.92 percent higher; the FTSE/ASE-40 for medium cap stocks closed 0.05 percent up; and the FTSE/ASE-80 for small cap shares finished 0.22 percent higher.

Of stocks traded, advances led declines at 143 to 116 with 87 remaining unchanged.

On a weekly basis, the general share index posted minor losses of 0.26 per cent.

[13] Paralympic Torch Relay works its way through Athens streets

Athens, 11/9/2004 (ANA)

The Torch Relay began from the Herod Atticus Theatre in the morning, passed outside Parliament and the Presidential Mansion and crossed through various municipalities before reaching Vouliagmeni where it will stay overnight.

Phil Craven, President of the International Paralympic Committee was one of the torchbearers and passed the torch to Spyros Stavrianopoulos, President of the Hellenic Paralympic Committee. The last person to carry the torch Friday was Greek water polo legend Yiorgos Mavrotas who has competed in five Olympic Games.

Paralympic champions Kyriakos Griveas, Maria Kalpakidou, Christos Tambaxis and basketball veteran Yiorgos Trontzos were among the other torchbearers who ran on Friday.

On Saturday, the Paralympic Torch Relay will continue in Saronida, Palaia Fokaia, Poseidon's Temple in Sounio and Lavrio.

[14] PM Karamanlis addresses Macedonian Museum of Modern Art exhibition

Athens, 11/9/2004 (ANA)

"I feel joy today to find myself at a symbol of modern Thessaloniki. In a live centre of cultural production which contributes decisively to the transformation of Thessaloniki's identity in the 21st Century.

"Through the result of the initiative and action of people such as Alexandros Iolas and Petros Kamaras, the Macedonian Museum of Modern art unifies with its creative course, the vision of the people of Thessaloniki for the present and future of the city. The vision for a modern economic but also cultural metropolis, a centre and point of reference of the broader region of southeastern Europe. A metropolis which does not suffice to the conservative management of the wealthy heritage of the past, but derives from it inspiration to go forward, with daring and strong steps forward," the prime minister said.

[15] Greek prosecutors to request information on Balco probe

Athens, 11/9/2004 (ANA)

According to reports, Greek authorities will submit their request through proper diplomatic channels in the next few days.

So far, four San Francisco Bay Area men have been indicted in the Balco case, while some 30 athletes have testified before a US federal grand jury. Initial reports from the West Coast cited a handful of Greek athletes as allegedly linked to Balco as well.

[16] Two suspects charged with antiquities smuggling on Kalymnos

Athens, 11/9/2004 (ANA)

Silver, bronze, marble and clay objects dating from the Classical to the Byzantine era were seized. Moreover, a bronze bust depicting the mythical god Hermes was deemed as the most valuable artifact in the two suspects' cache.

The unidentified pair is expected to face a local prosecutor.

[17] Thessaloniki prefecture to be given 25,000 euros to protect birds at Lake Koroneia

Athens, 11/9/2004 (ANA)

Local authorities were spurred into action after more than 3,000 dead birds were found lying along the lake's shores over the last few days, many belonging to rare species. Their deaths are attributed to the poor quality of the water in the wetland - which is protected under the Ramsar and Natura 2000 international conventions - which migrating birds use as a resting area. Over pumping and pollution have now turned the lake into an 'ecological trap', experts believe.

The 3,000 dead birds were collected in the past few days over an expanse of just 1,500 meters along the Lake Koroneia's 60-kilometer shoreline, and specialists estimate that some 10-15,000 birds have died due to the polluted waters in recent weeks.

Local authorities say the downgrading of this natural habitat is a major ecological disaster.

During a meeting between prefectural authorities, local organizations and environmental groups, it was decided to place small "cannons" at various points around the lake to scare birds away from the polluted waters and to prohibit fishing in the lake, although there have been no indications that the problem has affected the fish population.

Water samples from the lake, as well as blood and tissue from dead and sick birds have also been sent to university laboratories around the country for examination. The evidence so far points to eutrophication and a high alkaline content in the waters as a cause of death for the birds.

Lake Koroneia, one of the most important wintering sites for rare waterfowl in Greece, lies at the upper end of the Migdonia Basin about 15 km from Thessaloniki in Northern Greece. Notable wintering species include Podiceps cristatus, Casmerodius albus, and the globally threatened species Pelecanus crispus and Phalacrocorax pygmeus. Some 15 km downstream is a larger inland lake, Lake Volvi. These are large but quite shallow lakes, enclosed by ranges of hills, which connect with the sea through a gorge into Strymonikos Bay.

Water levels in Lake Koroneia have fallen steadily over the past 20 years due to falling groundwater levels and lower than average rainfall. The lake has been eutrophic since 1995 and is now an average less than 1 m deep and filled with grey-green algae.

[18] 9th Youth Parliament Session inaugurated

Athens, 11/9/2004 (ANA)

"The tragic event in Ossetia, but also the children who are victims of inhumane persecution in various parts of the world as well as those who are victims of illegal labor, child pornography, begging and illiteracy show that problems need to be resolved by people all over the world calling for political solutions which are always better than the violence of arms," Psarouda-Benaki said.

As for the European Union, the parliament president said that, "the vision for a [united] Europe is closer to being realized since the historic Europe of 25 member states belongs to one political organization which also has a Draft Constitution, a development which may constitute the most effective response as well as the strongest defense against globalization."

"The Europe which is being built is your Europe and you will reap its benefits if we manage to extend now the national foundations that have withstood the test of time and have helped the peoples of Europe to resist totalitarian conquerors," she emphasized. "These foundations are a State of Law, Parliamentarianism, respect of human rights and adherence to traditional values," she added.

She also referred to the success of the Olympic Games and the wonderful contribution of young volunteers. "The spirit of volunteerism which was revived on occasion of the Olympic Games, is perhaps the greatest intangible, and therefore everlasting, benefit that emerged from this great endeavor," she said.

Psarouda-Benaki made a reference to the 30 years that have passed since democracy returned to Greece and called on students to thank former Parliament President Apostolos Kaklamanis for establishing the youth parliament, their teachers and parents.

President of the Youth Parliament Council Iakovos Kampanellis also addressed the young audience, and urged them to get to know their country and their country's history, since this knowledge is a basic element of personal growth.

[19] Justice ministry official continues prisons tour with visit to Halkida closed prison

Athens, 11/9/2004 (ANA)

This is the second stop on a nationwide tour of correctional facilities begun by the leadership of the justice ministry as a fact-finding mission before it embarks on a major overhaul of the country's prison system.

The tour began with a visit by Justice Minister Anastasios Papaligouras to the drug rehabilitation centre for prisoners at Elaiona in Thiva on Wednesday.

[20] Greek woman breaks world 'natural weight' free diving record

Athens, 11/9/2004 (ANA)

Natural weight free diving is carried out in just a swimsuit with no other aids, such as a mask or flippers.

Varveri is a mother of a seven-month-old baby working Veria.

[21] Cyprus FM says EU Council's Legal Department opinion is 'catalytic'

NICOSIA 11/9/2004 (CNA/ANA)

Speaking on departure for Croatia on Friday where he is paying a two-day visit, he noted that if this opinion were dismissed, then ''the Council would not have a defense lawyer at the Court of Justice of the European Communities," should the case go before the Court.

The government of Cyprus and the Commission has different opinions on the draft regulation on direct trade between the EU and the island's occupied areas. The Legal Department shares the views of the Cyprus government.

He added that the regulation was not discussed by the permanent representatives of EU member states in Brussels (COREPER), because there are problems with the draft of the regulation proposed by the European Commission, in view of the Council's opinion, that ''fully vindicate'' the concerns of the Greek Cypriot side with regard to the draft.

Stressing that the Legal Department's opinion does justice to many of the government's positions, the FM noted that ''it clearly states that no other authority can operate ports in the Cyprus Republic, apart from the government."

Replying to questions, he said statements by European Commissioner Gunter Verheugen on the draft regulation to the effect that the Commission is one thing and the opinion of the Legal Department another could be interpreted in different ways.

''There is always a way to interpret someone's statements, it is important where statements are made and how the audience reacts,'' he noted.

As regards his visit, Iacovou said Croatia has started accession negotiations with the EU, noting that Cyprus supports its application.

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