Athens News Agency: Daily News Bulletin in English, 05-06-03

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

CONTENTS

[01] Results of French and Dutch European constitution referendums 'very important event', FM says

[02] No impasses in building of United Europe, foreign ministry spokesman Koumoutsakos says after Dutch rejection of Euro-constitution in referendum

[03] Level of Greek-U.S. relations excellent, FM says

[04] FM on Kosovo, Athens' solid backing of Bulgarian, Romanian EU prospects

[05] Molyviatis says Athens' stance proves it is not the intransigent side in FYROM 'name issue'

[06] Canada will only recognize FYROM with name arising from UN negotiations, Canadian PM says

[07] Foreign Minister Molyviatis to visit Moscow on July 7

[08] Gov't determined to proceed with shake-up of public sector, PM says

[09] Gov't says talks with EU on primary shareholder bill are continuing

[10] Bomb rocks Employment ministry, device points to 'Revolutionary Struggle' group

[11] PM requests faster utilization of Olympic venues, facilities

[12] EU Council of Justice Ministers examines European Arrest Warrant issue

[13] Defense ministry seeks to tighten rules for local residents dodging military service

[14] FIR infringements, airspace violations result from Turkish military exercise

[15] Albanian Democratic Party leader Sali Berisha guarantees rights and liberties anticipated by international treaties

[16] Businesses should take the initiative to boost exports, FinMin says

[17] Greece promotes use of broadband services

[18] Gov't dismisses press questions citing 'clash' with unions over reforms

[19] ND Sec't Meimarakis meets with OTOE labor union's leadership

[20] Gov't sets priority on property market

[21] Hellenic Petroleum offers new talks ahead of 10-day strike

[22] Piraeus Bank launches public offer for buyout of Egyptian Commercial Bank

[23] HSBC plans to expand in Greece

[24] Athens airport receives awards for passenger satisfaction

[25] Stocks nose up, led by banks

[26] International conference on Greek education and classic values begins in Athens

[27] Event in Dublin on the restoration of the Acropolis monuments

[28] High-speed car chase on NW highway ends with smugglers', migrants' arrests

[29] Illegal betting will stop, deputy sports minister says

[30] Prendergast: positions of Cypriot sides better understood now

[31] Cyprus to protest upgrading of Turkish troops

[32] Cyprus solution through substantive negotiations, says EU Left

[33] Australia keen on seeing a Cyprus settlement

[01] Results of French and Dutch European constitution referendums 'very important event', FM says

Foreign Minister Petros Molyviatis said on Thursday the results of referendums held in France and the Netherlands on the ratification of the European Union's Constitutional Treaty was a "very important event which must puzzle all of us'".

Molyviatis, who was speaking during a press conference, held by the Foreign Press Association of Greece, said governments must try to interpret the messages sent by the peoples with the referendums, while reiterating that "the process of ratifying the European Constitution in the other countries must not stop."

The foreign minister then referred to the procedure already anticipated by the European Constitution, meaning the completion of the ratification process by autumn 2006 when the European Council will examine the situation shaped and will decide on the next steps to be taken.

Commenting on repercussions on the EU by the negative results of the referendums in France and the Netherlands, the foreign minister reminded that during its long course Europe did not always forge ahead and that during the course of European construction "sometimes there was progress and sometimes stagnation as well as retrogression".

Molyviatis noted that Europe handled all this with success, stressing that the rejection of the Constitutional Treaty (in the two referendums) does not mean a rejection of Europe nor even of the course of European unification.

He clarified that he was not against the holding of referendums which is a democratic process, but pointed out that the Parliamentary process is equally democratic.

Replying to a question on the possible repercussions of the referendums on the process of EU enlargement, Molyviatis said this process must be continued as scheduled, while speaking of Turkey in particular he reminded that its accession course is described in the decisions of the European Council of December 17, 2004, and stressed that "Turkey's accession negotiations will begin on October 3."

On another question regarding the rekindling of discussions on enacting a special relations status between the EU and Turkey, the minister underlined that "no issue has arisen of amending the EU's position on Turkey's course to Europe" and that, in any case, the special relations issue is also referred to in the conclusions reached on December 17".

"On the occasion, I wish to repeat our position that Turkey, provided it fulfills the terms and preconditions set for her, must become a full member of the EU," the foreign minister said.

Regarding repercussions which might arise for the issue of Cyprus if problems arise for Turkey's European course, Molyviatis said the two issues are not linked and reiterated the Greek position in favor of a solution to the Cyprus issue based on the Annan plan, but also on the acquis communautaire as well.

"We are working at this time for the resumption of the process through the creation of conditions guaranteeing, as much as possible, the successful outcome of the effort because no one will be able to stand a new failure," the foreign minister said, referring to consultations which took place in New York and to the tour being carried out by Alternate UN Secretary General Sir Kieran Prendergast in Nicosia, Athens and Ankara.

Replying to a question on whether the October 3 deadline is linked to developments on the issue of Cyprus, Molyviatis replied in the negative, but said that the government of Cyprus has stressed, and the UN has accepted, that "there must not be any tight timetables in this new effort."

The foreign minister also commented on the protocol on the extension of the Ankara protocol to the EU's new member-states, saying that "according to reports the signing will not be delayed" and added that "when someone signs something, he signs it in order to implement it."

Molyviatis further spoke of a "golden age of Greek diplomacy" due to the widespread consensus he is ascertaining in past years on the strategic targets of Greek foreign policy.

[02] No impasses in building of United Europe, foreign ministry spokesman Koumoutsakos says after Dutch rejection of Euro-constitution in referendum

"Impasses in the course of building the United Europe do not exist. The European peoples and their leaders, with responsibility, will ensure that Europe will continue to take steps forward," Greece's foreign ministry spokesman George Koumoutsakos said Thursday, asked to comment on the outcome of Wednesday's referendum in The Netherlands, in which an overwhelming 61 percent of voters voted against the European Union Constitutional Treaty.

The Dutch 'no' vote came close on the heels of a rejection of the Euro-constitution by French voters, 55 percent of whom also voted against the constitution in a similar referendum last week. The overwhelming rejection of the constitution in two of the first three referenda in the EU -- in two of the six founding countries of the bloc -- has caused deep concern throughout the 25-nation-strong European Union. A referendum in Spain in February favored the Constitutional Treaty with a resounding 76.73 percent.

"Both the French and Dutch 'no' to the Treaty for the European Constitution, as a democratic expression of two peoples of the European Union '25' are respected by all," Koumoutsakos said, adding that "at the same time, these two 'no' votes do not comprise a mandate for suspension of the European's effort to work together in solidarity for the common vision of peace, stability and prosperity on our continent."

Koumoutsakos said that the results of the referenda "are messages for more effort and greater response by Europe to the expectations of the citizens and the challenges of the era".

The spokesman stressed that "the effort for European integration must continue", adding that "at this stage, it must continue with the implementation of the process of ratification of the Treaty for the European Parliament in the rest of the member-states".

The Greek parliament ratified the Treaty -- which was signed on October 29, 2004 by the 25 EU leaders -- on April 19, 2004, by an overwhelming majority of 268 votes for and 17 votes against in the 300-member unicameral House.

Nine EU members have approved the constitution thus far, but only Spain did so by referendum. The others ratified it in their legislatures. The constitution has to be accepted by all 25 member-states to take effect. Some 11 member-states have committed to holding referenda, but these are not binding, but consultative.

Communist Party of Greece: The Communist Party of Greece (KKE), in an announcement, opined that "the resounding 'no' by the Dutch people, which comes to join that of the French people, proves that popular opposition to the EU's anti-popular policy and the so-called 'Euro-constitution' is becoming generalized".

In an announcement, the KKE added that "the new rejection/condemnation, despite the threats and the coercive quandaries, is an optimistic message for the peoples and a source of worry for the plutocracy".

It also said that the Greek "government's refusal to hold a referendum on the Constitutional Treaty, and the lack of elementary briefing of the people on the 'Euro-constitution' -- which was voted in parliament by (ruling New Democracy party) ND and (main opposition party) PASOK -- reveals fear of the dynamic expression of disagreement and insubordination of the Greek people, particularly at this time when the new wave of the governmental anti-labor and anti-popular fury is preparing to swallow up everything that the (preceding) PASOK governments didn't have time to do".

Dutch referendum the 'coup de grace' to Euro-Constitution treaty, Coalition leader says

The referendum in The Netherlands was the final blow dealt by ordinary citizens to the European Constitutional Treaty, Coalition of the Left, Movements and Ecology leader Alekos Alavanos said on Thursday.

Commenting on the referendum result, in which 61 per cent voted against the treaty, Alavanos called on the government to adopt officially adopt the position that the process for the Constitutional Treaty had ended that that a new path needed to open, whose central theme will be the social state and combatting unemployment.

"If the government does not accept this and insists on continuing the process, then we will say that the Greek Parliament's position in favor of 'yes' [to the Treaty] is up in the air," he said.

According to the Coalition leader, the grass roots supporters of both main parties were in total conflict with their parties' acceptance of the Euro-Constitution, especially in main opposition PASOK.

"We challenge the government to hold a referendum in Greece also, so that we can see what the people really want," Alavanos said.

[03] Level of Greek-U.S. relations excellent, FM says

Foreign Minister Petros Molyviatis said on Thursday, commenting on strategic cooperation between Greece and the United States, that the recent talks between Prime Minister Costas Karamanlis and U.S. President George W. Bush confirmed the excellent level of relations between the two countries and showed that these relations have been upgraded.

Speaking during a press conference at the Foreign Press Association of Greece, Molyviatis expressed the conviction that the American side recognizes Greece's upgraded position and role on the international scene, while on the part of Greece strategic cooperation means ''utilization of the advantages we have for our benefit and that of the wider region''.

The foreign minister pointed out that in practice this cooperation is implemented where there are common interests, such as the consolidation of stability, progress and cooperation in the Balkans.

He added that there is consideration for Greece organizing an international conference to not only focus on issues of democracy but on various issues such as economic cooperation, cultural cooperation and others.

Molyviatis said the idea is still at an initial stage of processing but the first reactions expressed by countries in the region were positive because Greece is the most suitable country to host such a conference as it has good relations with all the countries in the region.

Asked repeatedly on the term "strategic cooperation", used in relations with the United States, the foreign minister said Greece is a European country which is utilizing its participation in international organizations and it is not only developing cooperation with the U.S. but with Russia as well.

Molyviatis also mentioned at this point that he has received an invitation from his Russian counterpart Lavrov to visit Moscow on July 7-8.

[04] FM on Kosovo, Athens' solid backing of Bulgarian, Romanian EU prospects

Greek Foreign Minister Petros Molyviatis on Thursday again outlined Athens' position regarding the strife-torn province of Kosovo, reminding that it would be a mistake to discuss a permanent status for the region before examining the progress "on the ground".

He noted that progress in Kosovo, especially the fulfillment of internationally set standards, will be examined later in the summer. If results are positive, he added, discussions over a permanent status can begin in the autumn.

Speaking at a luncheon hosted by the Athens-based Foreign Press Association (FPA), Molyviatis also answered questions regarding the EU prospects of Bulgaria and Romania.

The Greek FM underlined that Athens continues to wholeheartedly back both countries' accession course, which he, in fact, termed as a "vision" for Greece's foreign policy.

"We want to transform the Balkans into a region just like the rest of Europe, where peace, democracy, prosperity and stability can exist. Only then can the Balkans leave behind their painful past," he stressed.

[05] Molyviatis says Athens' stance proves it is not the intransigent side in FYROM 'name issue'

Foreign Minister Petros Molyviatis on Thursday reiterated Athens' insistence over a mutually acceptable solution to the "name issue" still plaguing relations between Greece and its northern neighbor, the Former Yugoslav Republic of Macedonia (FYROM).

Speaking at a luncheon hosted by the Athens-based Foreign Press Association (FPA), Molyviatis said Athens' stance vis-a-vis a recent proposal by UN special envoy Matthew Nimetz proves that it's not the intransigent side of the dispute, whereas the Skopje government continues to reject any compromise.

The Greek foreign minister added that acceptance of the Nimetz proposal could be a basis for negotiations after 10 years of inactivity on the issue, whereas he again reiterated that Athens' actions proved its willingness to solve the difference over the neighboring state's name.

[06] Canada will only recognize FYROM with name arising from UN negotiations, Canadian PM says

MONTREAL, 3/6/2005 (ANA - I. Fragouli)

During the meeting on Wednesday, the Canadian premier also denied rumors that Canada planned to sell nuclear reactors to Turkey.

The delegation raised issues concerning Canada's Greek community, such as social and pension-related issues.

[07] Foreign Minister Molyviatis to visit Moscow on July 7

Foreign Minister Petros Molyviatis will pay a two-day visit to Moscow on July 7 to 8, at the invitation of his Russian counterpart Sergey Lavrov, it was announced on Thursday.

[08] Gov't determined to proceed with shake-up of public sector, PM says

Prime Minister Costas Karamanlis reiterated the government's determination to go ahead with far-reaching reforms of the state sector, after a meeting with an Expert Committee for Public Administration on Thursday.

Karamanlis stressed that the government was prepared to make radical changes and engage in clashes toward this end, noting that this was the only way to overcome the critical economic state and huge deficits inherited from its predecessors.

The prime minister said that restructuring and, essentially, refounding the state along new lines was a key strategic choice and major priority of the new governance, seeking to effect the transition to a truly modern and effective state that was just, transparent and reliable and able to support and motivate the Greek economy and markets.

He noted that systematic dialogue in the broader public sector had been underway during the past months so as to ensure that the structural reforms had the widest possible acceptance, citing as an example the recent deal struck between OTE management and staff for reducing the number of people on the state telecom's pay-roll.

The premier stressed, however, that where such consensus could not be achieved, the government was obliged to go ahead with the changes regardless, showing wisdom, moderation and social sensitivity, on the one hand, but also the bold, decisive realism demanded by the times, on the other.

Karamanlis said that the envisioned changes would benefit the whole of society and tax-payers, not just a privileged few.

He particularly stressed the need for reforms in state-controlled banks in order to make them more competitive, underlining that the country could not continually postpone decisions for changes that everyone agreed had to be made, shifting the burden onto future generations.

The prime minister emphasized that the changes sought to drastically reduce the public deficit and create a competitive economy with vibrant growth, while stressing that they were not driven by dogma or ideology but by realism and common sense.

According to Karamanlis, a start toward the founding of a new modern state had already been made with the introduction of laws that simplified bureaucratic procedures and a measure that made the state liable to compensate citizens for failure to promptly complete transactions, as well as the conversion of Citizen Service Centers to complete transactions centers.

The public sector was presently bloated, wasteful, unproductive and bureaucratic, acting to enlarge deficits, add new tax burdens, obstruct economic growth and operating as a brake on the Greek enterprise, the premier said.

"Our vision for the state is clearcut: it should have a smaller presence in the economy and be more effective in its social intervention," he said.

PASOK spokesman comments on PM's statements; Roussopoulos replies: Main opposition Panhellenic Socialist Movement (PASOK) Spokesman Nikos Athanasakis, commenting on Thursday evening on statements made earlier in the day by Prime Minister Costas Karamanlis, said that the prime minister "used nice words which have nothing to do with the government's work and it is not enough for Mr. Karamanlis to be proclaimed as a great reformer."

The PASOK spokesman added that "Mr. Karamanlis and the New Democracy government are not promoting changes and reforms" and described the ND's governance as "bad."

Athanasakis accused the government that in local government, "it is promoting the takeover of the state, partisanship and the absence of meritocracy." He noted that for these reasons, PASOK leader George Papandreou has called for a debate in Parliament.

In reply to Athanasakis' statements, Minister of State and Government Spokesman Theodoros Roussopoulos said:"It alarms nobody that PASOK is not familiar with the words meritocracy, equality before the law and especially transparency." He added that "next to these, also unknown to the governments of PASOK were structural changes and reforms which the new government is swiftly proceeding."

[09] Gov't says talks with EU on primary shareholder bill are continuing

Greek government spokesman Theodoros Roussopoulos on Thursday said that talks between the government and the European Commission over the controversial "primary shareholder" bill were continuing.

He was responding to questions concerning a letter sent to the government by Commission official Dr. Alexander Schaub, director-general of Internal Markets and Services.

According to Roussopoulos, Schaub informed the government that the European Union will refer Greece to the European Court of Justice unless it implemented the actions agreed on with the Commission concerning the bill.

Implementing this agreement, the government had on Thursday passed an amendment that suspended the law, Roussopoulos said.

The spokesman said that the previous law passed by PASOK on this issue was still in force and denied that there was a legislative "gap", saying that a specific law on public works was already being implemented.

Both acts of legislation implement an article in the Greek Constitution that seeks to prevent the mass media from influencing the award of state contracts by preventing contractors interconnected with media enterprises from assuming state contracts. Both the latest law passed in 2005 and its predecessor passed by a PASOK government in 2002 have been judged incompatible with European directives and treaties by the European Commission, which has threatened to cut off EU funding in all cases where the law may have affected the outcome of tenders.

ND and PASOK support amendment on 'primary shareholder': The main opposition Panhellenic Socialist Movement (PASOK) has accepted the government's adjustment on the "primary shareholder", following the withdrawal of paragraph 2 of the relevant amendment.

With the adjustment the validity is suspended of law 3310/2005, from the date of the voting of the amendment until October 31, 2005, with the exception of articles 11 and 12 of paragraph 29 of this law. However, the second paragraph of the amendment was withdrawn according to which "with mutual decision by the Minister of State and, in each case, by the competent minister, each special, detailed and technical matter concerning the adjustment of the previous paragraph is adjusted."

PASOK parliamentary spokesman Haris Kastanidis had announced that he would vote the amendment providing the specific paragraph was withdrawn, given that, as he said, "it would given the minister the possibility, under the table, to come to an understanding with the National Radio and Television Council (ESR), on which certificates it would grant and to whom."

[10] Bomb rocks Employment ministry, device points to 'Revolutionary Struggle' group

A home-made time-bomb rocked the Employment and Social Protection ministry in downtown Athens early Thursday, causing extensive damage but no injuries. The bomb exploded at 2:53 a.m. next to a garbage bin on the sidewalk near the ministry on central Pireaus street off Omonoia Square. No group had claimed responsibility for the blast as at 2:15 p.m., but examination of remnants of the explosive device pointed to the 'Revolutionary Struggle' group.

According to initial reports, no one was injured in the strong blast, but the sound waves from the explosion shattered windows within a 60-metre radius, while the explosion itself was heard at a large distance in the vicinity.

Twenty minutes before the blast, an anonymous caller telephoned the Athens daily Eleftherotypia warning of the impending explosion. Police immediately cordoned off the area before the explosion.

Remnants of the home-made explosive device were being examined at the police crime lab, while the explosive material used is tentatively believed to be ammonium dynamite (dynamite made with ammonium nitrate).

According to reliable sources, the police guard outside the ministry saw an unidentified man leaving a satchel next to the garbage bin, situated on the sidewalk at the far end of the fence enclosing the ministry grounds. The guard approached the satchel and opened it up, saw it was a bomb, and immediately alerted police headquarters.

The sources said the guard's movements were apparently noticed by the suspect, who the guard said he saw make a phone call from a cell phone. Police said that the call to the newspaper was placed at approximately the time the guard saw the unidentified man phoning from his cell phone.

Police consider important the fact that they have a description of the suspect from an experienced police officer, and a sketch of the suspect was being drawn up by police sketch artists.

A police alert was also mounted after an unidentified caller phoned police headquarters at 7:00 a.m. warning that explosions would also go off at 7:00 a.m. at the ISAP underground train station at Omonoia Square and at the Education ministry on Mitropoleos street, near Syntagma Square.

Police cordoned off both areas, but a search turned up that the call had been a hoax.

Bomb syndesmology points to 'Revolutionary Struggle': Police bomb experts later said the explosive device was similar to that used by the "Revolutionary Struggle" group, known for two previous attacks in 2003 and 2004.

They said the bomb comprised a time mechanism composed of a desktop clock, a common detonator, a nine-volt battery, and a large quantity of ammonium dynamite.

According to a high-ranking Greek Police (ELAS) officer, the syndesmology of the bomb is the same as that of a bomb used in 2003 in a triple bomb explosion on May 3, 2004, detonated outside a police station in the Athens residential district of Kallithea, which was claimed by the group 8 days later.

The group first made its appearance in September 2003, when it claimed responsibility for a double bomb explosion at the Athens Courthouse complex where the Evelpidon Cadet Academy had formerly been housed.

A police anti-terrorism squad officer who took part in a morning meeting on the case at the Public Order ministry, headed by minister George Voulgarakis, told ANA that the incident had been a serious one, and that there had been no injuries due purely to luck, given that windows of apartment buildings and shops had shattered in a wide radius.

Police were investigating the prospect of another terrorist act following, with an overall claim of responsibility for the attacks, given that no group had yet claimed Thursday's explosion, the officer told ANA.

Ministry condemnation: Meanwhile, the Employment and Social Protection ministry strongly condemned the attack, and announced that the ministry's central services would remain closed Thursday and Friday for restoration of the damages caused by the blast.

In a statement, the ministry condemned the "murderous and cowardly attack" that "endangered the lives of working people and citizens".

It further said that, according to initial estimates, the damage caused by the explosion was extensive, not only to the ministry premises but also to nearby buildings.

The ministry leadership "unequivocally condemns this abhorrent act and declares towards every direction that in a strong Democracy, its institutions are not terrorized, are not daunted, and are not influenced by such cowardly actions," the statement said.

Gov't condemns bomb attack on Employment ministry: Government spokesman Theodoros Roussopoulos on Thursday said that the government "unequivocally condemns all such actions" in response to the explosion of a bomb outside the Employment ministry earlier that day.

"The institutions are not terrorized, dismayed or affected by such abhorrent acts," Roussopoulos added, noting that an investigation into the attack is underway.

[11] PM requests faster utilization of Olympic venues, facilities

Prime Minister Costas Karamanlis on Thursday reportedly called for the accelerated exploitation of various Olympic venues and facilities in and around Athens, during a meeting at his office with Alternate Culture Minister Fani Palli-Petralia and Olympic Real Estate Holdings SA President Christos Hatziemmanuil.

Afterwards, the culture ministry announced that it will issue an invitation to tender for Olympic facilities at Goudi (east Athens), the international broadcast centre (near the main Olympic stadium) as well as coastal venues at the Agios Kosmas site.

On her part, Palli-Petralia said discussions with the premier -- who also holds the culture minister's portfolio -- included timetables and implementation of a relevant draft bill regarding Olympic venues.

[12] EU Council of Justice Ministers examines European Arrest Warrant issue

The European Union's Council of Justice and Internal Affairs Ministers convened in Luxembourg on Thursday and an assessment on transferring the draft decision on the European Arrest Warrant to the national legislation of member-states was high on the agenda.

Justice Minister Anastassios Papaligouras stressed in his address the need of preserving in national legislation the political reasons for refusing to carry out a warrant and pointed out that the relevant law ratified by the Greek Parliament in July 2004 determines the country's legislative will on respect for fundamental human rights and the transfer of EU legislation to national law.

Referring to the issue of preserving electronic communications data, Papaligouras also stressed the need for maintaining relevant arrangements in the framework of the EU's third pylon, which requires unanimity in decision making and not their subjection to the responsibilities contained in the first pylon which entails a majority vote in decision making.

Lastly, the Greek minister supported during the discussion on the draft resolution regarding racism and xenophobia the proposal made by the Council's presidency which accepts the initial plan as prepared during the Greek presidency.

"What is crucial is combatting the morbid phenomenon of racism and xenophobia, while in parallel the national particularities and social factors of every member-state should be taken into consideration," Papaligouras said.

[13] Defense ministry seeks to tighten rules for local residents dodging military service

The defense ministry on Thursday warned that rules for those dodging military service while living in Greece will henceforth be strictly enforced, in a bid to stem a sharp rise in the numbers avoiding military service over the past five years.

According to figures released by the defense ministry, military service dodgers in Greece had nearly tripled since the year 2000, when there were 5,521.

A ministry announcement said that a new draft bill on military recruitment will seek to stamp out this phenomenon by not including any beneficial measures for "domestic" military service dodgers living in Greece, even though there will be measures for service dodgers living abroad.

'Domestic' military service dodgers are defined as those living permanently in Greece that have received a summons to appear for military service but failed to turn up.

Their numbers have increased steadily since 2000, with 7,582 in 2001, 10,428 in 2002, 12, 470 in 2003 and 12,470 in 2004.

Failing to report for military service is still a criminal offence in Greece and carries a series of penalties, such as deprivation of political rights, loss of right to a public-sector position, or the right to exercise a profession that requires a license from an administrative or police authority.

[14] FIR infringements, airspace violations result from Turkish military exercise

Dozens of Turkish warplanes breached air traffic regulations southeast of the Greek island of Rhodes on Thursday, whereas eight airspace violations were reported during a Turkish aero-nautical exercise in the wider Aegean area.

According to reports in Athens, 32 Turkish fighter planes, a naval support aircraft and a helicopter took part in the exercise without filing prior flight plans.

As in similar cases in the past, Greek fighter plans intercepted the violating aircraft, while one mid-air engagement was reported. Moreover, six Turkish formations were reportedly armed.

The exercise is expected to last until mid June.

[15] Albanian Democratic Party leader Sali Berisha guarantees rights and liberties anticipated by international treaties

Albanian Democratic Party leader Sali Berisha, heading the leaders of seven parties comprising his election coalition, toured the cities of Gjirokaster, Delvine and Sarande, telling the Greek minority that he guarantees the implementation of rights and liberties anticipated by international treaties.

"I guarantee the implementation to the letter of all the rights and liberties anticipated by international treaties," he said in Gjirokaster. Berisha referred in particular to schools and to the right to use national symbols.

Speaking in the Greek minority region of Livadia on Wednesday, Berisha promised "to his friend Karamanlis", as he termed the Greek prime minister, that in the event the Greek government decides to give dual nationality to the Greek minority members in Albania, he on his part will raise no obstacles (if elected prime minister).

[16] Businesses should take the initiative to boost exports, FinMin says

Boosting exports will be the best result of a closer cooperation between the public and the private sector, Economy and Finance Minister George Alogoskoufis said on Thursday.

Addressing a meeting of the National Exports Council, the Greek minister stressed that miracles could happen in exports, but the business community must take the initiative since the government has already created the necessary environment to support export activity in the country.

Alogoskoufis said the country should not rely upon traditional products only, but should promote export of other products such as oil products, pharmaceuticals, cosmetics, and software.

The government is fully aware of the need to deal with all factors related with exports and has announced that 2005 would be a year of structural changes to boost competitiveness, he noted. "We are creating the preconditions for a gradual increase of our exports, through a series of actions aimed to support economic growth," the minister said.

"We must deal with past mistakes and weaknesses that hurt exports. A new better framework is now created based on fiscal discipline, a new tax framework, incentives for research and technology, joint ventures between the public and private sectors," Alogoskoufis noted.

The Greek minister said growth would come from enterprises, and particular small- and medium-sized enterprises. He said that actions would be taken to support SMEs and announced that the Export Promotion Organization would spearhead this effort.

Foreign Deputy Minister Evripides Stylianidis, addressing the meeting, said the ministry has issued two ministerial decrees aimed to draft a new strategy to boost exports while he added that Greek embassies around the world were ready to facilitate Greek businessmen in their effort to find new markets.

[17] Greece promotes use of broadband services

Greece's Information Society secretariat, in close cooperation with the IT sector and Hellenic Telecommunications Organization, is promoting broadband services as a main tool of economic growth in the country.

The special secretary of the Information Society, professor V. Assimakopoulos, speaking to reporters on Thursday, stressed the favorable impact to citizens, to the domestic telecommunications and IT markets and to Hellenic Telecoms from an improving broadband services and fast Internet in the country.

For the citizen, broadband is a combination of infrastructure and electronic services offering e-transactions with public services, electronic financial transactions with speed and safety, distance work, expanding markets to businesses, electronic health services, entertainment and cheaper communication.

[18] Gov't dismisses press questions citing 'clash' with unions over reforms

The government on Thursday dismissed criticism that it was "clashing" with trade unions in the country ahead of a handful of major reforms in the wider public sector that now appear in the pipeline.

The statement comes days after a closely watched agreement between the state-run telecoms provider (OTE) and its employees' union (OME-OTE) to iron-out a 1.6-billion-euro early voluntary retirement package, and amid intensified efforts to push through pension reform in the banking sector as well as government efforts to privatize debt-ridden Olympic Airways.

Government spokesman Theodoros Roussopoulos reiterated, however, that consensus and compromise remain the government's standing position, while clarifying that decisions will be taken when talks to arrive at consensus are exhausted.

Asked about a 10-day strike declared, a day earlier, by the union representing workers at the state-own Hellenic Petroleum petro-chemical group for this month, Roussopoulos merely noted that the right to strike is guaranteed.

"We were criticized (by the opposition) for the fiscal audit, that it was a mistake; that the 1-percent increase in VAT rates was a mistake; now we see in Portugal, as in other European countries, similar and even harsher measures being taken. Our policy, nevertheless, continues to be that of a mild (economic) adaptation," Roussopoulos told reporters during his regular press briefing.

[19] ND Sec't Meimarakis meets with OTOE labor union's leadership

Ruling New Democracy secretary Vangelis Meimarakis on Friday met with the leadership of the bank employees' union (OTOE) only days before the group's declared 48-hour strike to protest the prospect of pension reform in two large state-run banks instead of a sector-wide solution.

Days after a ground-breaking agreement between the state-run telephony utility (OTE) and its employees' union (OME-OTE) over a 1.6-billion-euro early voluntary retirement package, the government is eying another crucial public sector deal that will create a new pension fund for Emporiki Bank and Agriculture Bank.

Afterwards, Meimarakis charged that certain circles are attempting to give the appearance that the government is on a collision course with wage-earners and the unions. He added, however, that talks are continuing with each side's arguments being tabled, while decisions will be taken in support of the public good and employees.

On his part, OTOE president Dimitris Tsoukalas sounded a diametrically opposing tune, saying that "we are in a war, and this will be confirmed with our industrial action ... we're in a dialogue because even in the greatest of wars dialogue continues."

He also repeated his union's demand for a unified pension fund to include all bank employees.

[20] Gov't sets priority on property market

The government has set a priority on improving the property market through changes in the law, three ministers said on Thursday.

Tourism Development Minister Dimitris Avramopoulos, Deputy Development Minister George Salagoudis, and Deputy Finance Minister Peter Doukas were addressing a seminar of the international FIABCI real estate professionals' trade group, attended by about 800 representatives of companies including Madison Marquette (USA), Comadim (France), and Mitsubishi Real Estate (Japan).

Outlining the changes to Athens over the decade before the Athens 2004 Olympics, Avramopoulos noted that the conference marked the start of a new era in alliances between real estate firms from home and abroad.

Salagoudis noted that growth of the property market would be strengthened by the government's town planning framework, ensuring competitiveness of the system, social justice, protection of the environment, and quality of residential areas; and the package of measures will become law within a year.

Doukas called on companies from abroad to work with their Greek counterparts, forecasting major growth of the domestic market.

[21] Hellenic Petroleum offers new talks ahead of 10-day strike

Management of Athens-quoted Hellenic Petroleum SA has offered to start 2005 pay talks with workers from a zero basis ahead of a 10-strike to begin on June 10, Development Minister Dimitris Sioufas said on Thursday.

Unions would receive a written invitation next week to launch negotiations after management withdrew its original proposals for the industrial relations pact following trade union objections, Sioufas told a news conference.

Also on Thursday, management released a statement in response to media coverage of the planned strike saying that the company routinely awarded staff extra benefits, including 17.7 monthly wages per year, above 14 salaries in line with market practice.

[22] Piraeus Bank launches public offer for buyout of Egyptian Commercial Bank

Athens-quoted Piraeus Bank said on Thursday that it had launched a public offer for the acquisition of 75% to 100% of Egyptian Commercial Bank through the Cairo Stock Exchange.

The offered price per share is EGP 20 (¬ 2.804) in the offer made on Wednesday, with the share total at 9,626,122, Piraeus said in a statement.

Approval has been received from the Bank of Greece, the Bank of Egypt and the Egyptian Capital Market Authority, the statement said.

After successful completion of the acquisition, a share capital increase for the Egyptian bank will follow, due by the end of June 2005, it added.

[23] HSBC plans to expand in Greece

HSBC, Europe's largest bank in terms of capitalization, plans to expand further in Greece.

The Greek operation's retail banking director, Bernard Payne, told a news conference that at least three new branches would be added to an existing network of 22 within the year in an expansion drive that would continue in coming years.

Growth in the bank's business is forecast at about 60% in 2005, up from 48% in 2004 and 36% in 2003; and over 10 million euros had been invested over the last two years in new information technology systems and restructuring of the branch network, Payne said.

[24] Athens airport receives awards for passenger satisfaction

Athens International Airport received two AETRA awards for 'Overall Passenger Satisfaction' as part of a conference on ACI quality of service at airports in Kuala Lumpur on a, June 1-2, achieving distinction for the fourth consecutive year.

A joint initiative of the International Air Transport Association (IATA) and the Airports Council International (ACI), AETRA is the world's leading annual airport benchmarking program for passenger satisfaction.

For the year 2004, when Athens hosted the Olympic Games, Athens International Airport received the following distinctions: