Athens News Agency: Daily News Bulletin in English, 05-03-31

Athens News Agency: Daily News Bulletin in English Directory - Previous Article - Next Article

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

CONTENTS

[01] Gov't defends new tax package, points directly to 'inherited deficit' of 6.1%

[02] Premier briefed by FM on outcome of US visit

[03] Karamanlis meeting with US Deputy Sec't of State Zoellick on Thursday

[04] Athens calls on Jerusalem Patriarch to 'assume his historical responsibilities'

[05] Gov't condemns incident at under-21 football qualifier

[06] US Congresswomen confer with Greek officials, NGOs on trafficking of persons

[07] Turkish patrol boat enters Greek waters near Imia islets

[08] Olympic venues bill to boost economic growth, transparency Alternate Culture Minister says

[09] Employment minister leaves for France to attend OECD ministerial meeting

[10] Interior Minister Pavlopoulos addresses KEDKE conference on 'Employment and Entrepreneurship'

[11] Greek corporate credit ratings down in 2003

[12] Chinese telecom plans to expand in Greece, Balkans

[13] Government plans to lift banking secrecy for bourse crimes

[14] Greece backs Black Sea, Mediterranean cooperation

[15] Tourism nets 7.4 bln euros in 2003

[16] Attica has lion's share of GDP

[17] Alpha Bank sees tax rise fuelling inflation

[18] Mobil returns to Greek lubricants market

[19] Music composer G. Sicilianos dies at the age of 85

[20] Political leaders express condolences over the death of Greek poet M. Sahtouris

[21] PM to attend 'Open Stadiums' event at Athens Olympic Stadium installations

[22] 'Euro-bus' campaign launched in Greece

[23] Discussion on European constitution referendum held at Athens Bar Association

[24] Berlin Festival to be held in Athens for the first time

[25] Alexandros S. Onassis foundation honored by Columbia university

[26] Greece beats Albania 2-0 in World Cup qualifier

[27] EU can force Turkey to meet obligations, Cyprus Spokesman says

[28] EU Commission to work for protocol implementation

[01] Gov't defends new tax package, points directly to 'inherited deficit' of 6.1%

Athens, 31/3/2005 (ANA)

"The government was called on to face problems that had been accumulated by its predecessors, and it chose the policy of a mild adaptation, something it announced from the very first," government spokesman Thodoris Roussopoulos told reporters, while again referring to the "non-shock" economic policies the Karamanlis government has repeated cited since assuming power a year ago.

"The fiscal audit recorded dramatically negative results, and this government was obliged to deal with a deficit of 6.1 percent ... this difference, roughly eight billion euros, which was either due to under-estimation or hidden deficits, must be covered," Roussopoulos, who is also the Minister of State, said.

Moreover, the spokesman downplayed the prospect of increased tax evasion, saying the government is "conveying" a message of strict fines and increased market checks.

"It is not pleasant to take measures that burden the Greek citizen -- thankfully in the least possible degree -- however, this is the truth (regarding the deficit), one known to our European partners," Roussopoulos added.

PASOK party leader says government 'deceived everyone and everything': Main opposition PASOK party leader George Papandreou, referring to economic measures announced by the government on Tuesday, said on Wednesday the government ''deceived everyone and everything and showed its anti-popular character''.

The PASOK leader further said the measures were measures of social cruelty which constitute a raid on popular classes.

Papandreou accused the government of ''deceiving Parliament by ratifying a budget in December which does not stand, of deceiving everyone with promises of mild adjustment without new taxes, of deceiving the Greek people when it promised everything to popular classes before the elections and of taking measures now which will intensify poverty, unemployment and indigence.''

The opposition leader said all this is accompanied by the excuse that PASOK is to blame for everything, adding that they are convincing no one since they have already been in power for a year and it is their budget that is not being carried out.

Papandreou wondered who benefits from this policy of the government and said those who do not benefit are the pensioner, housewife, farmer, young man, working woman, professional, the citizen belonging to low and medium income brackets and Greece.

Roussopoulos replies to PASOK leader Papandreou's statements: In reply to criticism launched against the government by main opposition Panhellenic Socialist Movement (PASOK) leader George Papandreou, Minister of State and Government Spokesman Theodoros Roussopoulos said on Wednesday evening:

"PASOK, in the 10 years of governance, imposed more than 80 taxation burdens on the Greek citizens. Mr. Papandreou, who had a prominent position in the PASOK government all these years, as Minister, neither saw nor heard anything. How he also did not see or hear about the deficits of 8 billion euros which was revealed by the European Commission and which today the government is trying to cover."

PASOK reaction: In reaction to Tuesday's announcement, 34 main opposition PASOK deputies on Wednesday tabled a Parliament question towards the development minister charging increased inflation, reduction in consumers' buying power, and what they termed the retail market's "asphyxiation".

Among others, the PASOK MPs called for measures to stem the tide of price hikes, to strengthen fair competition and for the government to rethink its decision expanding store hours.

Amendment hiking VAT rates tabled: The economy ministry on Wednesday tabled in Parliament an amendment, announced by the government a day earlier along with an updated Stability and Growth Program for 2004-2007, raising the VAT rate and taxes on cigarettes and liquor.

Specifically, VAT will be raised one percentage point, 19 percent from 18 percent - 9 percent for special categories, up from 8 percent.

The higher tax rates will come into force as of April 1, 2005, with the government forecasting extra annual revenues of just more than one billion euros.

Industrialists say high deficit warrants new tax measures: The Association of Greek Industry (SEB) said on Wednesday that the government's new tax measures, which aim at rapid financial returns, were warranted due to a high deficit in 2004, expected to top 6.0% of gross domestic product, coupled with an inability to effect major cuts in spending below the anticipated inflation rate.

"In order to lower the high public debt and allow the new tax measures to be temporary, government policy from now on must focus on a drastic cut in primary state spending, implementation of a wide-ranging privatization program, the sale of state property that fails to bring major revenue to the budget, and needed structural intervention to make operation of the state more effective," SEB said in a statement.

In a separate news release, the INKA consumer watchdog criticized the measures, saying that consumers yet again were being called on to foot the bill.

[02] Premier briefed by FM on outcome of US visit

Athens, 31/3/2005 (ANA)

Molyviatis told reporters after the meeting that the results of his US visit were very positive, adding that he had been in constant contact with Karamanlis.

Earlier, Karamanlis met with merchant marine minister Manolis Kefaloyiannis to discuss matters falling under the latter's competency, as well as the ministry's plans for upgrading and developing the country's ports.

Kefaloyiannis also briefed the premier on the development of the cruise sector, given that seven cruise ships have joined the Greek Registry of Shipping ahead of the summer season, while the approval of relevant applications for three more cruise ships were pending. Kefaloyiannis said that this development would contribute to reducing unemployment among seamen, as well as the country's tourism development.

Karamanlis further met with justice minister Anastasios Papaligouras, with whom he discussed relevant issues.

[03] Karamanlis meeting with US Deputy Sec't of State Zoellick on Thursday

Athens, 31/3/2005 (ANA)

[04] Athens calls on Jerusalem Patriarch to 'assume his historical responsibilities'

Athens, 31/3/2005 (ANA)

A foreign ministry spokesman told reporters that a ministry team sent to the Holy Land last week to investigate charges that the Patriarchate illegally sold-off -- or signed a long-term lease, by some accounts -- several properties in east Jerusalem to Israeli interests "could not put together a clear and precise picture (of the situation) ... because specific information was not provided ? as such information does not show up in the Patriarchate's records."

Asked if the Greek government was calling on Erinaios to resign, foreign ministry spokesman George Koumoutsakos reiterated that Athens stands by its position of not interfering in the Patriarchate's internal issues. He added, however, "...but this should not be misinterpreted as support towards either individuals or behaviors that do not support the Patriarchate's prestige."

Moreover, he said the government will not counsel Erinaios on the manner in which he will "meet his obligation to the institution of the Patriarchate, his congregation and to the nation."

"The only concern of the Greek government is the strengthening of the Patriarchate as an institution, according to the standing status quo..." Koumoutsakos said.

In a report composed by the team of experts, which was released on Wednesday, it is noted that the two crucial documents giving power of attorney to the Patriarchate's former treasurer were missing for managing the properties were missing.

Auditors said Erinaios told them he signed one document -- giving Nikos Papademas, who is wanted in connection with the case -- power of attorney to lease one store in east Jerusalem, accusing the latter of subsequently forging the contents of the notarized document to allow a long-term lease option.

The Jerusalem Patriarchate is considered as the "jewel in the crown" of Orthodox Christian Hellenism's centuries-old presence in the Middle East, and especially in the Holy Land, one reason why the situation is being closely monitored by the Greek government, other Orthodox Churches and expatriate communities around the world.

[05] Gov't condemns incident at under-21 football qualifier

Athens, 31/3/2005 (ANA)

"Acts of bigotry amid fanaticism are totally foreign towards the spirit of sports. Yesterday's ugliness by a small group of so-called 'fans' is roundly condemned by the vast majority of Greeks," government spokesman Thodoris Roussopoulos told reporters during his regular press briefing on Wednesday.

One 18-year-old youth was arrested in the incident.

[06] US Congresswomen confer with Greek officials, NGOs on trafficking of persons

Athens, 31/3/2005 (ANA)

The delegation met with general secretary George Gennimatas of the Ministry of Foreign Affairs, secretary general Panos Panouris of the Ministry of Justice, Secretary General Leonidas Evangelides of the Ministry of Public Order, Secretary General Joanna Despotopoulou of the Ministry of Health, representatives of the police, the Ombudsman and a number of non-governmental organizations including ARSIS, Stop Now!, Klimaka, Greek Helsinki Monitor, Act Up, and Doctors of the World. They also visited a shelter for victims of trafficking.

At the conclusion of their trip, Chairwoman Pryce remarked that "The United States and Greece unfortunately aren't the only countries that face this modern day form of slavery. The trafficking of women and kids for sexual exploit is a transnational issue. It affects every nation in this world. It is a global crisis. It is a global health crisis. We desire to work together with Greece to curtail trafficking and strongly encourage all facets of Greece from the government to NGOs to the community to communicate, collaborate, and make an effort to stop this crisis."

Athens was the first stop of a trip that also includes Moldova, Italy, and Albania.

[07] Turkish patrol boat enters Greek waters near Imia islets

Athens, 31/3/2005 (ANA)

According to reports, the patrol boat remained in the sea region for roughly two hours, shadowed by a Greek coast guard vessel and a navy warship. The patrol boat reportedly exited territorial waters at around 1:30 p.m.

[08] Olympic venues bill to boost economic growth, transparency Alternate Culture Minister says

Athens, 31/3/2005 (ANA)

Palli-Petralia said that the bill clearly defines the role of the state, individuals and regional authorities, emphasizing that the bill does not have any grey areas that are open to interpretation. She also reiterated the government's position that "nothing [of the Olympic venues] will be sold."

The alternate minister also explained that the bill calls for the creation of green zones and the development of theme parks, while there will be no further construction on Olympic sites.

She said that interest from private investors has been great, as witnessed by her and by her colleagues. Additionally, she clarified that there have not been any specific proposals regarding long-term leasing of the sites, but said that such a possibility will be considered.

The bill will soon go to Parliament, but Palli-Petralia did not specify a date.

[09] Employment minister leaves for France to attend OECD ministerial meeting

Athens, 31/3/2005 (ANA)

Issues to be examined during the conference include policies on promoting employment and the combatting of unemployment and their funding, the operation of social security systems in OECD countries and their method of financing and ways of cooperation between the public and private sectors in the social protection sector.

[10] Interior Minister Pavlopoulos addresses KEDKE conference on 'Employment and Entrepreneurship'

Athens, 31/3/2005 (ANA)

Speaking on the second day of the conference, Pavlopoulos said that the two major problems which the country faces are the marginalization of the regions and unemployment and consequently, the inequalities which are created on a regional level, but also regarding individuals among themselves, especially the "sensitive groups which need more protection, within the framework of the social state of law."

The objective of the government and that of the ministry is the utilization of the EU initiative "Equal" and on the other hand, the accession of local government organizations (OTA) in this effort, he said.

The local government organizations are obliged to participate in this program for social and institutional reasons, as well as for reasons which concern the policy on a European Union level, he added. However, as the minister said, the state is obliged to give the local government organizations the possibilities they need, apart from the responsibilities with which they have already been burdened with.

The 4th Community Support Framework (CSF) will move in the direction of the Regions and Local Government, while the role of the state will be small. "Therefore, policies such as these which concern the initiative 'Equal', will emerge through organizations such as the OTA," the minister noted.

On what the local governments must do, Pavlopoulos said that the first is their participation regarding regional development and the creation of new jobs through the strengthening of entrepreneurship. The second is training and professional orientation.

The local government organizations, within the EU initiatives "Equal", are possible to help sensitive social groups, so as to lift as much as possible social inequalities, he concluded.

On his part, KEDKE President Paris Koukoulopoulos said:" At present, we are moving in the dark, there is an enormous institutional deficit in matters of entrepreneurship and employment. We must find ways and open institutional roads so as for us to be able to have effective preoccupations with these matters."

[11] Greek corporate credit ratings down in 2003

Athens, 31/3/2005 (ANA)

Surveyed were limited liability and SA firms in industry, commerce and services that published balance sheets in 2003 and 2002, ICAP said in a report.

Of the total, 13% more companies had their ratings lowered than raised.

Services fared worse (17%), followed by commerce (14%), and industry (8%), ICAP said.

[12] Chinese telecom plans to expand in Greece, Balkans

Athens, 31/3/2005 (ANA)

The corporation's domestic subsidiary, ZTE Corporation Greece, has doubled staff at its Athens office to 30 employees over the last two months, and a technical support centre will open this year, Fuqiu told a news conference as part of a European roadshow to publicize the corporation's services and wireless technology.

The Greek operation was launched in July 2004 when ZTE was chosen by Hellenic Telecommunications Organization SA to be its ADSL supplier for internet access during the Athens Olympics last summer.

The company forecasts sales of 30 million US dollars in Greece this year, rising to 50 million dollars in 2006.

[13] Government plans to lift banking secrecy for bourse crimes

Athens, 31/3/2005 (ANA)

Under the terms of the bill, which was discussed by the parliamentary Finance Committee on Wednesday, the commission can request information from the central bank on customer deposits as the market's regulatory authority.

[14] Greece backs Black Sea, Mediterranean cooperation

Athens, 31/3/2005 (ANA)

"Greece is a prime mover in these initiatives, and the goal is to further strengthen our stabilizing role," Avramopoulos told a meeting of tourism ministers of the Black Sea Economic Cooperation Organization held on the island of Rhodes.

[15] Tourism nets 7.4 bln euros in 2003

Brussels, 31/3/2005 (ANA)

Greeks traveling abroad spent 2.2 billion euros, Eurostat said.

The net income figure was the fourth largest in the European Union's 25 members, in a ranking led by Spain at 29.5 billion euros, France (11.6 billion euros), and Italy (9.4 billion euros), according to the data.

Total revenue from tourism in the EU-25 in 2003 was 213.4 billion euros, Eurostat said.

[16] Attica has lion's share of GDP

The prefecture of Attica accounted for the lion's share of gross domestic product (GDP) in 2001-2003, the Greek National Statistics Service (GNSS) said on Wednesday.

In regional accounts for the period, 37.9% of GDP was concentrated in Attica and 17.6% in Central Macedonia, the GNSS said in a statement.

[17] Alpha Bank sees tax rise fuelling inflation

Athens, 31/3/2005 (ANA)

Likely is a 0.7 percentage point increase in average inflation for 2005, which would be further boosted by high fuel prices, the report said.

[18] Mobil returns to Greek lubricants market

Athens, 31/3/2005 (ANA)

Lubricants will be sold for automobiles, commercial vehicles and industrial applications.

In addition, ExxonMobil is to supply 1,350 EKO ELDA gasoline stations with lubricants.

Most indices drop in 'bearish' bourse trading

Investors were in a selling mood on Wednesday at the Athens Stock Exchange, as stocks recorded a 2.10-percent drop, with the general price index closing at 2,869.23. Turnover stood at 181.1 million euros.

Most sector indices ended lower, with the Insurances (4.21 pct), Banking (2.94 pct), Metals (2.90 pct) and IT Solution (2.80 pct) recording the biggest percentage losses of the day, while Construction (0.03 pct) Telecoms (0.01 pct) managed to avoid losses. The FTSE/ASE 20 index for blue chip and heavy traded stocks declined by 2.22 percent, the FTSE/ASE MID 40 index ended 2.37 percent lower and the FTSE/ASE SmallCap 80 index fell 1.58 percent.

Broadly, decliners led advancers by 257 to 41 with another 43 issues unchanged.

Equity Index Futures: