Athens News Agency: Daily News Bulletin in English, 05-12-07

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

CONTENTS

[01] International community criteria as important as final Kosovo status, FM says

[02] FM Molyviatis meets with Kosovo president

[03] Molyviatis and SEECP 'troika' arrive in Pristina

[04] Foreign minister and UK foreign secretary discuss EU, FYROM

[05] Greece opposes UK budget plan for European Union

[06] Deputy DM Vassilis Mihaloliakos addresses SEDM conference in Washington

[07] US supports Greece's efforts against terrorism, State Dep't spokesman reiterates

[08] US reaffirm recognition of Ecumenical Patriarch's ecumenical status and standing

[09] Attacks against Ecumenical Patriarchate last spasmodic reactions before rising of better days, Patriarch says

[10] PM meets with Development Minister Sioufas

[11] Debate begins on public utilities bill

[12] Ministerial decision aims at harmonization with EU hazardous waste directives

[13] Cabinet approves bills on pharmaceuticals, three-child families

[14] Gov't falls short on delivering on promises to three-child families, main opposition says

[15] Parliamentary debate on weapons procurement bill begins

[16] Deputy public works minister to attend conference on climatic changes in Montreal

[17] FYROM's PM 'willing' to contribute to settlement of name dispute

[18] Deputy FM Stylianidis meets ambassadors of Afghanistan and Moldova

[19] FinMin, Commissioner discuss 2005, 2006 budgets

[20] 2006 draft budget passes through Parliament comm't

[21] Finmin reports progress in reduction of fiscal deficit

[22] Sioufas briefs EU Commissioner Reding on new laws for businesses in Greece

[23] Reforms need to speed up, SEB president tells Competitiveness Forum

[24] Athens given favorable ratings by tourists, visitors: study

[25] Greek inflation increased 3.5 pct in November, yr/yr

[26] Cosmote Romania relaunches operations

[27] Dairy firms given 3 months to correct labels or face sanctions

[28] Gov't to crack down on defaulting insurers

[29] Draft bill on construction VAT ratified

[30] MPs agree to extend Zisimopoulos' term at Competition Commission

[31] Assets of listed portfolio investment firms show decline

[32] Athens Bourse Close: Stocks nose up

[33] Photovoltaic feasibility study for Presidential Mansion gets thumbs up from Papoulias

[34] Annual ceremony honors navy's patron saint

[35] Early morning violence reported outside Panteios university

[36] Coalition leader tables question on legal recognition of homosexuals' cohabitation

[37] Greeks live longer due to medical progress

[38] Sting operation nets hashish, four suspects in Thessaloniki

[39] Olympic torch passed to Turin 2006 Games' organizers

[40] Olympiakos beats Real Madrid 2-1 in Champions League match

[41] Papadopoulos: Turkish forces build bridge of separation in buffer zone

[42] Ledra Street to be discussed at UN, says British diplomat

[43] Cypriot FM warns Turkey over Open Skies veto on Cyprus

[01] International community criteria as important as final Kosovo status, FM says

BELGRADE, 7/12/2005 (ANA/F. Karaviti)

"The criteria have been set and they will be implemented before we settle on the final status," Molyviatis said.

He added that the Inter-Balkan Cooperation delegation is visiting the region in order to hear the views of all involved parties.

"We are not here to suggest a solution. We remain dedicated to the principles and guidelines adopted by the United Nations, the European Union and the Contact Group for defining [Kosovo's] final status," the minister stressed, while expressing his opposition to the adoption of a strict negotiating timetable.

He did, however, note that negotiations should not be allowed to drag on either.

Molyviatis reiterated the view that all countries in the region should participate in the process and emphasized that the solution chosen in the end should be geared towards promoting stability in the greater region.

Aside from Rugova, Molyviatis and Romania's and Croatia's deputy foreign ministers also met separately with Kosovo Prime Minister Bajram Kosumi, main opposition leader Hasim Thaci, "Serb List" leader Oliver Ivanovic and head of the UNMIK mission Soren Jessen-Petersen.

According to diplomatic sources, the Albanian side insists on full independence for Kosovo, while the Serb minority raised the issue of security for the minority community.

Ivanovic said that he was uncertain as to whether there was any intention for compromise, referring to recent acts of violence against Serbs, which he explained as an attempt by the perpetrators to strengthen their position ahead of upcoming negotiations.

He also criticized UNMIK saying that it had insufficiently reacted to the episodes.

The troika will have talks with Serbian leaders in Belgrade on Wednesday.

[02] FM Molyviatis meets with Kosovo president

PRISTINA, 7/12/2005 (ANA/F. Karaviti)

The deputy foreign ministers of Romania and Croatia were also present.

Rugova said that an independent and democratic Kosovo that will be a member of Euro-Atlantic organizations, have a steady relationship with the US and good relations with its neighboring countries and respect minority rights is the only way for peace and stability to be achieved in the region.

Referring to minority rights in particular, Rugova said that while the legislative framework is recent it is continuously being improved and stressed that an independent Kosovo will mean better living conditions for all its citizens.

Finally, Rugova thanked the three ministers for their interest and for their countries' military presence in the region.

On his part, Molyviatis spoke about the need for close cooperation between Kosovo's leadership and neighboring countries and expressed hope that the principles adopted by the international community will serve as the basis for upcoming negotiations regarding Kosovo's status.

[03] Molyviatis and SEECP 'troika' arrive in Pristina

PRISTINA, 7/12/2005 (ANA - F. Karaviti)

The informal SEECP 'troika' is made by of Molyviatis, Romanian State Secretary for European Affairs Lucian Leustean and Croatian State Secretary Hido Biscevic.

Later on Tuesday, Molyviatis and the other two ministers would head for Belgrade, where they are due to meet Serbia's President Boris Tadic, Serbia's Prime Minister Vojislav Kostunica and Serbia and Montenegro Foreign Minister Vuk Draskovic on Wednesday.

According to Molyviatis, the aim of the SEECP troika's visit is to signal the continued interest of Balkan-area countries in the issue of Kosovo, to brief the countries of the surrounding region on the situation and the views of the various sides involved and to underline the need for frequent and meaningful consultation with neighboring countries.

[04] Foreign minister and UK foreign secretary discuss EU, FYROM

PRISTINA, 7/12/2005 (ANA - F. Karaviti)

Straw called Molyviatis to discuss the European Union's fiscal prospects for 2007-2013, while the two men also talked about the Former Yugoslav Republic of Macedonia (FYROM).

[05] Greece opposes UK budget plan for European Union

BRUSSELS, 7/12/2005 (ANA/V Demiris)

"The proposal is incompatible with Greece's position," Finance Minister George Alogoskoufis said after a meeting in the Belgian capital of his EU counterparts. Britain holds the bloc's rotating presidency.

"At the same time, there is leeway for improvement in negotiations that are to be held in coming days," Alogoskoufis noted.

At an EU summit in June, Greece backed a compromise by Luxembourg, the bloc's former rotating president, which it saw offering a fairer distribution of the cost of EU enlargement.

Britain's proposal calls for a slimmed-down, long-term budget that cuts 24 billion euros from a spending level proposed by Luxembourg, most of it taken from regional aid to east European countries.

The EU's 25 members aim to reach a deal on the budget at a summit on Dec 15 and 16.

Tough talks anticipated: Deputy Foreign Minister Yiannis Valinakis told reporters that Greece was studying the British budget package, forging alliances in what he called "tough, painful" negotiations among the EU's 25 members.

"The final outcome cannot be determined yet," Valinakis said.

He noted that Greece's had two aims: the attainment of a final agreement that would show the EU was capable of taking major decisions; and a drive to obtain an increase in funding "down to the last euro" to aid Greek growth.

Valinakis is to represent Greece at a working dinner for 20 EU members known as "friends of cohesion" ahead of a finance ministers' meeting on Wednesday that is expected to bring the first official statement by the bloc's members on the UK budget deal.

[06] Deputy DM Vassilis Mihaloliakos addresses SEDM conference in Washington

WASHINGTON, 7/12/2005 (ANA/T.Ellis)

The conference is attended by ministers from 11 SEDM member-states and from the three countries that have been invited as observers: Moldova, Serbia-Montenegro and Bosnia-Herzegovina.

Addressing the conference, Mihaloliakos said:"Even if the political process for the establishment of the status of Kosovo has in essence already been routed following the initiatives of the UN Secretary-General, nevertheless, the situation remains particularly fragile, a fact which renders necessary the continuation of the presence of KFOR until the conditions of security are consolidated and the final status is clarified."

The deputy defense minister said Athens seeks the accession to the European and to the Euroatlantic structures of all the countries of the region "on condition they fulfill the necessary prerequisites."

Mihaloliakos hailed the accession of Ukraine in the SEDM initiative, evaluating that this gives new dimensions and possibilities in the cooperation of the countries which already constitute this initiative. He expressed Greece's satisfaction over the fact that it has the opportunity to contribute in the reconstruction of Afghanistan, stressing that beyond Greek forces which are already in this country, Greece on December 1 took command of Kabul airport.

Mihaloliakos spoke of "the creation of a stable Balkan environment, which will be undividedly linked with Europe and with the Euroatlantic institutions." Within this context, he expressed Greece's satisfaction over the presence at the conference of the defense ministers of Bosnia-Herzegovina and of Serbia-Montenegro, hoping that these countries will soon fulfill the necessary obligations for their accession to SEDM.

[07] US supports Greece's efforts against terrorism, State Dep't spokesman reiterates

WASHINGTON, 7/12/2005 (ANA/T. Ellis)

Asked whether the US agreed that all members, including the leaders, of the 'November 17' terrorist group have been arrested, prosecuted and jailed in Greece, Ereli replied: "We believe that November 17th is a terrorist organization. It has acted against our interests. We believe it is important to combat them systematically and thoroughly, and that we make every effort to support the Government of Greece as it does that."

Asked "why the US Embassy in Athens these days is looking again to find the leader of the 'November 17' terrorist organization", Ereli appeared to be unaware of the issue in depth, saying he was "not fully briefed on the facts", and simply replying "because he's the leader of a terrorist organization".

When it was pointed out to him that the '17N' leader has already been arrested, prosecuted and incarcerated, Ereli said: "Well, like I said, frankly, I don't want to speak to the specifics of the report because I'm not fully briefed on the facts. What I can tell you is that as a general matter we encourage and support the Government of Greece as it acts to move against terrorists who are operating on its soil against its interest and those of its allies."

[08] US reaffirm recognition of Ecumenical Patriarch's ecumenical status and standing

WASHINGTON, 7/12/2005 (ANA/T. Ellis)

Asked by a reporter what the US government position was on this issue, in a question prompted by recent statements by Turkish officials that Ankara does not recognize the ecumenical title and role of the Ecumenical Patriarch, the written response said "The US considers Ecumenical Patriarch Bartholomew to be a religious leader of global standing".

"The U.S. takes very seriously the issue of religious freedom in Turkey, as illustrated in the 2005 International Religious Freedom Report. Among specific concerns highlighted in the report are issues related to the Ecumenical Patriarchate, including the reopening of the Halki Seminary, as well as issues related to other religious minorities in Turkey," the statement continued.

"The U.S. has consistently raised our concerns regarding the Ecumenical Patriarchate with Turkish authorities at the highest levels for many years. President Bush urged the re-opening of Halki Seminary in his June meeting with Prime Minister Erdogan. Under Secretary of State Karen Hughes also discussed this issue with Ecumenical Patriarch Bartholomew during her visit to Istanbul in September," the State Department's written reply concluded.

[09] Attacks against Ecumenical Patriarchate last spasmodic reactions before rising of better days, Patriarch says

ISTANBUL, 7/12/2005 (ANA/A. Kourkoulas)

"All those who are continuing to oppose and fight the Church and the Greek community and their just causes are making the last spasmodic moves to survive and prevail, continuing their unjust and undemocratic tactics and attitude," he said.

Referring to the Ecumenical Patriarchate's efforts, Vartholomeos said "the effort for our survival, the effort for us to struggle against injustice and the infringements of inalienable just causes which we have as inhabitants of this city for centuries is natural and just."

Vartholomeos also said that "since Turkey's accession course to Europe has begun repeated reforms and radical changes will take place which will bring down many dividing walls and unity and the prosperity of all citizens of this country will occur, who have the same duties towards the state and the same rights which they expect to be fulfilled and be respected by the state."

[10] PM meets with Development Minister Sioufas

ATHENS, 7/12/2005 (ANA)

Sioufas, whose portfolio includes the energy sector and PPC, nevertheless told reporters the Athens-listed company's future remains bright and promising.

[11] Debate begins on public utilities bill

ATHENS, 7/12/2005 (ANA)

The employment minister said that no employee has anything to fear because labor and social insurance rights are safeguarded with the new arrangements, speaking of deep structural reform.

All the opposition parties opposed the bill, terming it "profoundly anti-popular, counter-productive and socially insensitive".

Ruling New Democracy party rapporteur Constantine Tassoulas said the bill will put an end to the privileges of the administrations of public utilities, saying that "the governors of public utilities must realize that they are handling money belonging to the Greek people."

Main opposition PASOK party rapporteur Vangelis Papachristos said of the bill that "it creates a state of overturning social peace. Public utilities need changes but in another direction which will take place following dialogue and social consensus."

Communist Party of Greece (KKE) rapporteur Dimitris Tsiongas said the bill was "anti-labor" and it promoted "reactionary reform and facilitated big capital, plundering public utilities and increasing the exploitation of employees, both old and new."

Coalition of the Left, Movements and Ecology (Synaspismos) party rapporteur Yiannis Dragasakis said that "we call on the government to name which businesses must not be sold. We also request PASOK to do the same to enable the Greek people to understand your true intentions and what will happen to them in the future."

PASOK opposes DEKO draft law: The main opposition Panhellenic Socialist Movement (PASOK) will vote against the draft law for the Public Utilities and Corporations (DEKO) as well as on the election of mayors and prefects with 42 per cent from the first round.

The decision was taken on Tuesday during the session of the coordinating body of the party's Parliamentary Group which was held under the chairmanship of PASOK leader George Papandreou.

Papandreou gave particular emphasis to the DEKO draft law, stressing that PASOK's basic aim and position, regarding the public enterprises "is above all the service of public interest."

He said "the DEKO have a role to play in growth, they should offer high quality services and operate with transparency." Papandreou added that "at the same time, they must be competitive but also offer security to the working people."

He rejected the logic of change in labor relations without a dialogue with the working people and without there being security for them. Papandreou said that the ruling New Democracy (ND), as arises from the draft law which it has brought before Parliament, ""is attempting to serve specific interests," while this draft law "moves in the direction of serving customer relations and does not prevent corruption."

Referring to the government's intention to pass a bill for establishing the 42 per cent minimum for the election of mayors and prefects, Papandreou noted that what counted was "reinforcing and decentralizing local government and not the concentration of powers promoted by the ND government".

[12] Ministerial decision aims at harmonization with EU hazardous waste directives

ATHENS, 7/12/2005 (ANA)

The decision replaces the joint ministerial decision which has been effective since 1997.

The new ministerial decision defines clearly which substances are considered hazardous waste, provides for specific measures for their handling, simplifies permitting for related processing and sets conditions and limitations in hazardous waste management.

"With this decision, the idea that 'he who pollutes pays,' is implemented, which is also the basis of our policy when it comes to the environment," Souflias said.

"The problem with managing hazardous waste is being solved by the industries producing it and with particular emphasis on their responsibility," he added.

[13] Cabinet approves bills on pharmaceuticals, three-child families

ATHENS, 7/12/2005 (ANA)

The first bill contains articles abolishing the lists of drugs that state-run social insurance organizations can prescribe, while the second will introduce a series of benefits for those having a third child.

Health Minister Nikitas Kaklamanis afterwards explained that the economy did not at present allow families with three children to be automatically awarded the status and benefits given to 'large' families - defined as families with four or more underage children.

Among the measures envisaged is the payment of a tax-free lump sum of ¬ 2000 for those having a third child after January 1, 2006 and a gradual reduction in the special registration tax for those buying a new car.

The tax will be reduced by 35 per cent in 2006, by 70 per cent in 2007 and there will be full tax relief from 2008.

Other measures will allow preferential treatment in student transfers, army service and street market stall licenses. Kaklamanis said that a series of other such measures involving other ministries will be announced later today.

[14] Gov't falls short on delivering on promises to three-child families, main opposition says

ATHENS, 7/12/2005 (ANA)

Venizelos' comments were made on Tuesday, following the inner cabinet's approval of two draft bills on pharmaceuticals policy and measures to support three-child families.

Venizelos said that Prime Minister Costas Karamanlis "must keep his word otherwise he runs the risk of being exposed in the eyes of families with three children or more who are seeing their existing benefits diminishing."

[15] Parliamentary debate on weapons procurement bill begins

ATHENS, 7/12/2005 (ANA)

The opposition had requested that Zorbas and the armed forces' chiefs be allowed a hearing in order to determine the accuracy of press reports alleging that they were opposed to the bill.

Defense Minister Spilios Spiliotopoulos had said that he did not oppose hearing Zorbas' opinion.

The weapons procurement bills allows for two processes in the awarding of contracts, either through an open tender or an inter-state agreement.

However, the bill also allows for a special negotiating procedure in the following four instances: in the event of an emergency, national security, development of research programs and defense materiel, or if the weapons supplier is an organization of the broader public sector in which the state is a shareholder.

In these four instances, the ministry's procurement administrator will be able to choose the supplier but after offers have been submitted in writing.

Earlier, Christos Papoutsis, head of main opposition PASOK's foreign affairs and defense division, accused the government of "non-credibility and hypocrisy" concerning transparency.

[16] Deputy public works minister to attend conference on climatic changes in Montreal

7/12/2005 (ANA)

The Treaty on climatic changes has been signed by 154 countries and the European Union in Rio in June 1992, at the Environment and Development summit.

Greece has ratified the Treaty since 1994. As regards the Kyoto Protocol, the meeting is being called on to adopt 19 decisions concerning the implementation of the Protocol. These decisions have been shaped during previous summits. Work will be completed on December 9.

Conclusions constituting the EU's common position on the Montreal meeting have been approved during the last EU Environment Council in Luxembourg on October 17, 2005.

According to an Athens News Agency (ANA) dispatch from Canada, Kaloyiannis said that it was the first meeting between parties that had signed and ratified the Kyoto Protocol, adding that Greece, being a member of the EU, has ratified the agreement on restricting gas emissions which produce the greenhouse phenomenon.

The deputy minister went on to say that Greece, although being a regional industrial country, complies with all the indications of the EU on restricting environmental burdening. He pointed out that the council of European Environment ministers is proceeding with more drastic reforms for the protection of the environment with decreases it is considering imposing on gas emissions from air transport.

Replying to a question on the recent deregulation of energy, Kaloyiannis said that "one of the priorities of the government is to facilitate investments in Renewable Energy Sources and with the new special town planning framework we are preparing we are looking forward to a fifth of electric power being produced by alternative forms of energy by 2010."

[17] FYROM's PM 'willing' to contribute to settlement of name dispute

PARIS, 7/12/2005 (ANA/O. Tsipira)

Buckovski's comments were made while addressing the plenary session of the Parliamentary Assembly of the Western European Union held in Paris this week.

He asked for Greece's support of his country's EU aspirations.

Asked by Greek MP Elsa Papadimitriou to what extent he is willing to respect agreements already made which are aimed at leading to a mutually-acceptable solution, Buckovski said that his country "is ready to operate constructively".

He added that stability is needed in the region and expressed hope that Greece "will continue to support FYROM's intentions, as seems evident from comments made by both Prime Minister Costas Karamanlis and main opposition PASOK leader George Papandreou."

Buckovski assured Papadimitriou that FYROM will continue its efforts towards finding a solution, and promised that his country would not do anything counter-productive.

He asked that Greece continue to support FYROM in its EU accession efforts and said that he would call on the UN Security Council to help find a solution as quickly as possible, acting as mediator.

[18] Deputy FM Stylianidis meets ambassadors of Afghanistan and Moldova

ATHENS, 7/12/2005 (ANA)

[19] FinMin, Commissioner discuss 2005, 2006 budgets

BRUSSELS, 7/12/2005 (ANA/V. Demiris)

Replying to press questions later, Almunia said that, with respect to the 2005 budget, the Greek authorities had fully met the recommendations of the Council while, on the 2006 budget, he said that Eurostat's final position on certain measures of a temporary nature, which the Greek authorities have included in the draft for next year's budget, was awaited.

The Commissioner clarified that securitization of anticipated future revenues of the public sector was not included among the measures on which Eurostat's position was pending, and expressed hope that, following Eurostat's (the EU's statistics service) analysis, there would be a positive evaluation by the European Commission and the Council, in the first weeks of 2006, on the actions of the Greek authorities.

[20] 2006 draft budget passes through Parliament comm't

ATHENS, 7/12/2005 (ANA)

Conversely, he said two social goals include more support for low-income households and boosting development in the provinces.

Criticism by main opposition PASOK MPs (Georgakopoulos and Anomeritis) mostly revolved around the methodology used by the ND government to pinpoint the budget deficit over the past few years as well as a decrease in public investments, while a Communist Party of Greece (KKE) deputy (Tzekis) charged that the government's emphasis on debt and budget deficit reductions aim at terrorizing citizens into tolerating "anti-popular" measures.

Finally, a Coalition of the Left (Synaspismos) deputy (Dragasakis) requested figures on what he termed the "internal government debt".

The draft was approved by a majority (the ruling party's deputies) of the committee members

[21] Finmin reports progress in reduction of fiscal deficit

BRUSSELS, 7/12/2005 (ANA/M Spinthourakis)

"The Greek fiscal deficit is falling steadily, and at a high rate of decline. In 2004-2006 it will fall by 4.0 percentage points of gross domestic product to 2.6% of GDP from 6.6%," Alogoskoufis said at a meeting in the Belgian capital of his counterparts from EU countries.

"This will happen through a de-escalation of spending with no accompanying slow-down in economic growth and without watering down the efficacy of state intervention. And unemployment will fall," the minister forecast.

The decline in the fiscal deficit was rooted in structural measures, and the part of the decline that was due to temporary measures accounted for only 0.5% of GDP.

The government's drive for fiscal revitalization would continue in 2007-2008, although at a milder pace, until the deficit shrank to 2.3% and 1.7% respectively, Alogoskoufis noted.

[22] Sioufas briefs EU Commissioner Reding on new laws for businesses in Greece

ATHENS, 7/12/2005 (ANA)

Reding is responsible for Information Society and media issues within the European Commission.

The briefing covered the licensing of businesses in Greece, laws for a reduction in tax rates, the bill for deregulating the electricity and natural gas markets and the introduction of biomass fuels for use in transport.

Sioufas also outlined the progress and rates of absorption for the Operational Program "Competitiveness" (known by the acronym EPAN in Greek), the signature of the Energy Community Treaty, the inauguration of a Greek-Turkish natural gas pipeline and the signature of an agreement between Greece and Italy for a natural gas pipeline that will link the two countries and Turkey, as well as the memorandum signed by Greece, Bulgaria and Russia for the construction of the Burgas-Alexandroupolis oil pipeline.

During the meeting, Reding and Sioufas discussed the i-2010 program adopted by the EU in June 2006 for the Information Society and the media, which refers to the use of new technologies and science in industry policy to promote the EU's competitiveness.

[23] Reforms need to speed up, SEB president tells Competitiveness Forum

ATHENS, 7/12/2005 (ANA)

Kyriakopoulos said that businessmen were waging battles daily over the self-evident and, instead of waging their battle on the international market through competition, they were doing so at home with the State, the public administration, the local government organizations, and the organized and individual interests.

SEB vice-president Dimitris Daskalopoulos said that the distance separating Greece from the majority of the other member states of the EU "15" (before the latest enlargement) was large, adding that some of the new member states had now already surpassed Greece, "which means that we must speed up the rate of changes".

A public opinion survey presented at the Forum showed that 70 percent of the Greek citizens saw competitiveness in a positive light, but the same percentage considered the Greek economy as being of low competitiveness or none at all.

Also, 52 percent consider that the economic situation in Greece will decline over the next 12 months, while 38 percent feel that their personal economic situation has worsened.

According to the survey, the five biggest problems faced by the country are unemployment, inflation, health, education and development.

The survey was conducted by MRB between October 24 and 31 on a random nationwide sampling of 1,200 people

[24] Athens given favorable ratings by tourists, visitors: study

ATHENS, 7/12/2005 (ANA)

The first of two studies commissioned by the Athens municipality, unveiled on Tuesday, focused on the demographics of tourists and visitors, along with their opinions on the various tourism amenities offered in the historic but often congested east Mediterranean metropolis.

The second study recorded views on Athens by would-be visitors from countries that traditionally make up the bulk of tourist arrivals in Greece, in this case the United Kingdom.

On the plus side are mass transit systems -- dramatically improved for the 2004 Olympic Games -- monuments, Athenians' hospitality and friendliness, accommodations and security.

Weak spots plaguing the city's overall image include pricy services, taxis, traffic and a lack of cleanliness in public places.

As far as British respondents in the study are concerned, Athens rated as the 14th most attractive city internationally and sixth amongst European cities.

In releasing the study, Athens Mayor Dora Bakoyanni said tourist arrivals to the city increased by 9 percent for 2005, a figure that would more-or-less overturn slumping numbers - excluding the 2004 Olympics - over the past decade for the Greek capital.

The studies were conducted by the Athens-based subsidiary of the Leo Burnett firm.

[25] Greek inflation increased 3.5 pct in November, yr/yr

ATHENS, 7/12/2005 (ANA)

The harmonized inflation rate used in international comparisons rose 3.4 pct in November compared with the same month last year and decreased by 0.2 pct in comparison with October 2005.

The NSS monthly report said the CPI decreased 0.2 pct in November as compared to October. A year earlier, this figure was 0.1 pct. The report attributed the monthly drop to a reduction of the price index in the transport sector, due to lower prices for cars and petrol.

NSS general secretary Manolis Kontopyrakis predicted that average inflation in 2005 will close at 3.5 pct and that annual inflation will rise to 3.7 pct in December. He also announced that figures for GDP growth in the 3rd quarter of 2005 - which sources said will reach 3.7 pct - will be released on Friday.

The 3.5 pct increase in the CPI compared to last year was fuelled chiefly by a 7.9 percent rise in rents and house maintenance cost (utilities, building maintenance and repair, heating costs). There was also a 3.7 pct increase in fees for education, a 3.8 pct rise in healthcare service prices, a 3.5 pct increase in prices for clothes and footwear, a 3.1 pct increase in transportation prices due to higher costs for parts, maintenance and taxi fares, a 3.3 pct increase in tobacco and alcoholic beverages and a 3.1 pct increase in catering sector prices (hotels, cafes and restaurants).

The CPI for 'miscellaneous goods and services' increased by 2.8 pct due to a rise in motor vehicle insurance rates and hairdressing services, while phone rates increased by 2.4 pct and non-alcoholic drinks and foodstuffs by 2.4 pct.

[26] Cosmote Romania relaunches operations

ATHENS, 7/12/2005 (ANA)

"We are celebrating a significant milestone in the history of Cosmote Group and an important breakthrough for Romanian telecommunications," the CEO of Cosmote Greece, Evangelos Martigopoulos, said in a statement.

"Cosmote today has the widest presence in SE Europe in mobile telephony," he added.

The Romanian subsidiary has a network that includes 10 Cosmote shops, 75 Romtelecom outlets and 175 commercial partners' shops, including Athens-quoted Germanos stores.

Cosmote Romania provides coverage to almost 80% of the population.

A news conference for the company's launch was attended by Romania's Minister of Communications and Information Technology, Zsolt Nagy and OTE Group Chairman, Panagis Vourloumis.

[27] Dairy firms given 3 months to correct labels or face sanctions

ATHENS, 7/12/2005 (ANA)

The ministry was acting on the results of a sector inspection conducted by the Greek food and drugs control agency EFET, which found that violations of labeling law by Greek sellers of pasteurized and evaporated milk were practically universal.

Deputy Development Minister Yiannis Papathanassiou said all Greek dairy companies were guilty of transgressions to a greater or lesser extent.

Information on labels for fresh milk that was found to be incorrect, misleading or failed to conform to legislation included the indication of the product's origin (85 pct of cases), nutritional information (73 pct), distinctions between similar products (69 pct), net weight (23 pct).

Another 15 pct were found to have violated laws for indicating the sell-by date, production date and suitability code and a further 8 pct on instructions for use and storage and ingredients.

Producers of evaporated milk were also found to have violated labeling laws concerning the composition of the milk (61 pct), the type of processing it had undergone (46 pct), the ingredients (33 pct), instructions of use (31 pct) and fat content (5 pct).

[28] Gov't to crack down on defaulting insurers

ATHENS, 7/12/2005 (ANA)

Addressing a conference held by the Union of Insurance Companies of Greece, Papathanasiou said that a drastic decline in the capitalization of insurers was due to the adoption of new international accounting standards.

[29] Draft bill on construction VAT ratified

ATHENS, 7/12/2005 (ANA)

Bezas said that the introduction of VAT in the construction sector "is a conscientious, mature and beneficial decision of the government, aimed at restructuring the construction circuit, where extensive tax evasion exists, and the creation of a better tax framework in the transfers of real estate to facilitate the latter."

[30] MPs agree to extend Zisimopoulos' term at Competition Commission

ATHENS, 7/12/2005 (ANA)

Approval was given by MPs of all parties with the exception of the Communist Party of Greece (KKE), who were not present.

[31] Assets of listed portfolio investment firms show decline

ATHENS, 7/12/2005 (ANA)

The decline was due to the absorption of Hellenic and Progress by their parent banks, the report said.

[32] Athens Bourse Close: Stocks nose up

ATHENS, 7/12/2005 (ANA)

The FTSE/ASE-20 index for high capitalization shares ended 0.19% up; the FTSE/ASE-40 for medium cap stocks closed 0.48% higher; and the FTSE/ASE-80 for small cap shares finished 1.27% down.

Stock Futures: