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Athens News Agency: Daily News Bulletin in English, 05-12-09

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

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

December 9, 2005

CONTENTS

  • [01] Karamanlis emphasizes determination to proceed with crucial public sector reforms
  • [02] Public utilities bill to be presented to Parliamentary plenum on Tuesday
  • [03] FM discusses EU finances with German, French counterparts
  • [04] PM to meet Tony Blair on Friday
  • [05] Ceremony for long-awaited new border post on Greek-Bulgarian frontier set for Friday
  • [06] Greek President sees EU 'social deficit' midway to Lisbon targets
  • [07] PASOK leader continues contacts with social partners Thursday
  • [08] Greek representative at UN comments on UNFICYP
  • [09] Yiannakou opens int'l conference in Paris on digital technology in schools
  • [10] Seminar for SE Europe deputies for combatting of organized crime begins in Thessaloniki
  • [11] U.S. State Department avoids comment on November 17 group
  • [12] Protection of minority rights a problem in Albania, European Commission finds
  • [13] High-profile attorney/MP to meet with magistrate probing trial-fixing charges on Monday
  • [14] Amendment for possibility of cremation in Greece submitted by 10 deputies
  • [15] Finmin sanguine about economy's outlook in address to ND MPs
  • [16] Development minister stresses energy policy
  • [17] PPC barred from tender for 900MW power stations, minister confirms
  • [18] EU Commission to probe state aid to Greek vehicle industry ELBO
  • [19] Salagoudis in Sofia to attend meeting on SE Europe Energy Community
  • [20] Gov't wants banks to curb rolling rate cost down to public
  • [21] Monitoring Committee of 3rd Community Support Framework holds meeting
  • [22] PASOK party cadre comments on 3rd Community Support Framework
  • [23] Papoulias opens exporters' conference
  • [24] Greek products hold third place in American consumers' preference, U.S. ambassador says
  • [25] Transport Minister meets with Bulgarian counterpart
  • [26] Coalition leader visits power plant in Megalopoli
  • [27] Foreign banking groups may find Greek partners
  • [28] Credit Agricole to take part in Emporiki's share cap rise
  • [29] Greek exports to Balkans rise
  • [30] OA launches e-check in for domestic flights
  • [31] Athens Bourse Close: Stocks drop
  • [32] Court rules against broadcast of N17 appeals trial
  • [33] Missing passenger ferry found
  • [34] Parliament to organize exhibition on political cartoons
  • [35] Athens Mayor hosts city's senior citizens
  • [36] Greek-Turkish 'Games without borders' children's festivity in Ankara
  • [37] President Papadopoulos says Cyprus problem an EU-Turkey issue
  • [38] COREPER adopts text on Turkey's revised partnership
  • [39] Cyprus president says failure of talks would be devastating
  • [40] Government proposes 'way forward' for Ledras street
  • [41] UNFICYP says Turkish works at Ledra Street must cease

  • [01] Karamanlis emphasizes determination to proceed with crucial public sector reforms

    ATHENS, 9/12/2005 (ANA)

    Prime Minister Costas Karamanlis on Thursday again emphasized the government's resolve in pushing through a handful of major reforms and restructuring of Greece's often sluggish public sector, while he appeared confident that his economic team's tidying up of state finances will prove successful.

    Karamanlis' statements, which coincide with the tabling of a reform-laden draft bill making labor relations at state-run utilities and enterprises more flexible, among others, were made during an address to ruling New Democracy's Parliament group.

    "Citizens gave us a clear and precise mandate to change things; to effectively deal with the problems that have accumulated and increased over the past years; to clash with the attitudes of the past; to dare implement all the initiatives that were postponed over the previous years," Karamanlis said, reiterating one of his primary pre-election planks, namely, reforms in Greece's massive public sector.

    He referred directly to the draft bill for utilities and state-run enterprises (telephony, power, water etc.), saying his government intends to end the long-standing plague of operating state-run companies with huge losses, whereas a distinct improvement in the quality of services for consumers and citizens is another target.

    Moreover, the Greek premier said the draft bill will boost regulatory supervision of state-run enterprises not listed on the Athens Stock Exchange.

    Referring to a proposed change that has met with the head-on and sharp opposition of unions and the political opposition, Karamanlis said the employment status of new hirings at public sector utilities and state-run enterprises will gradually shift to the same regime and legal status enjoyed by private sector employees, thereby eventually ending the current "two-speed" distinction between the public and private sector. Karamanlis nevertheless reminded that the status of current employees will not change.

    "Reforms being promoted today in state utilities are a one-way street, because they (companies) are obliged to operate in a particularly competitive environment, as well as to cover lost ground in order to become competitive," the premier told ND deputies.

    In citing the need for transparency in the wider public sector, Karamanlis then aimed his criticism at the main opposition PASOK party and the latter's long stay in power.

    "For those (PASOK) that governed for 20 years; for those that compromised with corruption and graft; for those that now appear as critics, transparency is simply an empty slogan. For them it is a 'pool of Siloam', where they merely want to wash away their sins. For us it is a standing and non-negotiable principle that we demonstrate on a daily basis," he said.

    Furthermore, he again echoed criticism of ongoing reactions from a "privileged minority" and "organized vested interests", reactions he said want to deflect the "fight, on all fronts, against corruption and collusion..."

    Finally, he referred to the dire situation in the economy inherited from the previous PASOK governments, charging that Greece entered the 21st century "bearing massive economic burdens and deeply ingrained structural problems" that kept it at the bottom of the European Union in terms of important socio-economic indices, such as competitiveness, public debt, budget deficits, GDP per capita and a huge gap in the balance of trade.

    "Greece can, however, win the wager of the future; the new era is opening new paths to exploit Greeks' creativeness, society's great abilities and the country's comparative advantages," he concluded.

    PASOK spokesman responds to PM: Main opposition PASOK party spokesman Nikos Athanassakis, commenting on the address made by Prime Minister Costas Karamanlis at the ruling New Democracy party's Parliamentary Group on Thursday, said it was interpreted by PASOK as an effort to strengthen the spirit of ND's deputies with a display of determination by the prime minister.

    Athanassakis said that for 20 months Karamanlis has been "repeating the same announcements which are being denied every day, while at the same time he is continuing to pose as the flag bearer against corruption and to attack the opposition."

    The PASOK party spokesman also said that PASOK "has submitted specific proposals on transparency and corruption, but the government remains deaf and is hiding behind vague proclamations."

    Athanassakis further said that "the myth that PASOK is to blame for everything is over," adding that the economic policy of ND and Karamanlis "has collapsed and burdens are falling on the many, while those benefiting are very few."

    [02] Public utilities bill to be presented to Parliamentary plenum on Tuesday

    ATHENS, 9/12/2005 (ANA)

    The processing of the bill regulating the new operational status of public utilities and corporations (DEKO) was completed at a relevant Parliamentary Committee on Thursday night, without any changes being made. It is expected to be presented to the Parliamentary plenum on Tuesday.

    Finance and Economy Minister George Alogoskoufis reiterated that "the government will continue the policy of reforms with the purpose of resetting the Greek economy."

    He also said that "with this bill we are trying to achieve the overall handling of the problem of extravagance and mismanagement at public utilities. It is the greatest reform in the country in the past 15 years. Our aim is for them to operate from now on with procedures that will guarantee respect for the money of taxpayers and the providing of appropriate services to society at large."

    [03] FM discusses EU finances with German, French counterparts

    BRUSSELS, 9/12/2005 (ANA/M. Spinthourakis)

    The European Union's financial prospects dominated the discussions Foreign Minister Petros Molyviatis had with his German and French counterparts, Frank Walter Steinmeier and Philippe Douste-Blazy respectively, on the sidelines of the NATO ministerial summit held here on Thursday.

    Aside from the EU budget, Molyviatis and Steinmeier also discussed the European Constitution and developments in the Balkans. Regarding the latter, Molyviatis briefed the German minister on the meetings he had in Pristina and Belgrade during the informal dinner hosted by the Belgian Foreign Minister Karel De Gucht.

    [04] PM to meet Tony Blair on Friday

    ATHENS, 9/12/2005 (ANA)

    Prime Minister Costas Karamanlis will be meeting British Prime Minister and European Council president Tony Blair when he visits London on Friday afternoon.

    The meeting is being held in view of the EU summit taking place in Brussels next week.

    [05] Ceremony for long-awaited new border post on Greek-Bulgarian frontier set for Friday

    ATHENS, 9/12/2005 (ANA)

    Preparations for Friday's long-awaited opening of a new border crossing at the Exochi site on the increasingly busy Greek-Bulgarian frontier continued on Thursday, with the Greek government confirming that President Karolos Papoulias will lead a high-ranking delegation arriving from Athens.

    Papoulias will be joined by his Bulgarian counterpart Georgi Parvanov at the inauguration ceremony.

    Greece's ministers for transports and Macedonia-Thrace, as well as the deputy foreign minister will be on hand. Bulgaria's ministers for regional development and public works, as well as the deputy foreign minister, will head the Sofia delegation.

    The two heads of state will meet in the middle of a recently constructed 448-metre two-way tunnel, named the Greek-Bulgarian Friendship Tunnel. Earlier in the day, Greek Deputy FM Evripides Stylianidis and his Bulgarian counterpart Lyubomir Kyuchukov will sign a relevant inter-state agreement.

    The new Ilinden-Exochi crossing will link the northern Greek town of Drama with neighboring Bulgarian district of Goce Delcev.

    The tunnel's construction was co-financed by the EU's Interreg program and the Greek state.

    The initial agreement for the opening of the new border crossing was signed in 1995. It is the first of three new border checkpoints between Greece and Bulgaria provided for in the bilateral agreement, aimed at alleviating congestion at the other busy border posts between the two countries. Besides the actual tunnel, another 800 meters of roadway, state-of-the-art customs posts as well as related administration buildings were constructed.

    Two new border crossings are expected to link Komotini, further to the east, with Kurdzhali, as well as the Thracian town of Xanthi with Rudozem.

    [06] Greek President sees EU 'social deficit' midway to Lisbon targets

    ATHENS, 9/12/2005 (ANA)

    The European Union was suffering from a 'deficit' in its social sector and the unemployment problem was acute, Greek President of the Republic Karolos Papoulias said on Thursday as he received members of Greece's Economic and Social Committee (OKE).

    "We have reached the mid-way point from Lisbon and we cannot be very satisfied," Papoulias said, while congratulating the OKE members of their work in a difficult time.

    "The struggle is joint, you are the frontrunners and we stand at your side," he added.

    OKE president Nikos Analytis said the meeting, which had been requested by OKE, had focused on the issue of social consensus.

    [07] PASOK leader continues contacts with social partners Thursday

    ATHENS, 9/12/2005 (ANA)

    Main opposition PASOK leader George Papandreou on Thursday continued a round of contacts with the social partners, in view of the upcoming debate on the 2006 budget in Parliament.

    Following meetings with the main trade union organizations the day before, Papandreou met groups representing farmers, employers, industry and commerce on Thursday.

    Starting at the farmers' umbrella union PASEGES, Papandreou was briefed by PASEGES President Tzanetos Karamihas on the budget's shortcomings for the farming community, such as the reduction of OGA farming pensions, rising oil prices, as well as a special consumption tax and VAT payments that burdened farmers both as producers and consumers.

    At the General Confederation of Light Industry and Commerce of Greece (GSEBEE), the main opposition leader was briefed on concerns about new direct and indirect taxes, reduced funds for the GSEBEE social insurance fund and rising taxes for some 630,000 small businesses, as well as steadily shrinking family incomes.

    After a later meeting with the National Trade Confederation (ESEE), Papandreou slammed the government's economic performance and said that the budget did not reflect the true needs of the country and again criticized the government's decision to conduct a general 'audit' of state finances at the start of its term.

    "We don't see reforms, the bill for public utilities (DEKO) is not a serious reform in our eyes and it moves along lines that do not have a developmental character, nor will it contribute to a plan for the modernization and competitiveness of state services and market reform," he added.

    Replying to a statement by the president of the Union of Greek Industry (SEB) Odysseas Kyriakopoulos, meanwhile, PASOK's leader stressed that collective labor agreements were a very important issue.

    He underlined that peace in labor relations was an important element of stability and growth, which the country and the social partners had succeeded in creating over the past years.

    [08] Greek representative at UN comments on UNFICYP

    NEW YORK, 9/12/2005 (ANA/P. Panayiotou)

    Greece's permanent representative at the UN Adamantios Vassilakis, speaking to reporters on Thursday, said that the building of a bridge by Turkish troops at Ledra Street on the buffer zone in Nicosia provides the occupation army with military advantages.

    Vassilakis was speaking after Wednesday's in camera consultations by the Security Council, during which the members of the House were briefed by the assistant UN Secretary General Haid Anabi on the content of UN Secretary General Kofi Annan's report on his proposal on a six-month extension for the Peacekeeping Force in Cyprus.

    ""The building of a bridge by the Turkish troops at Ledra street in Nicosia gives the occupation army military advantages in the specific region and does not help the building of trust, to which the opening of yet another corridor must aim at," the representative said.

    "The report by the Secretary General, in general, is good, simple and it describes the situation. We have made certain observations regarding the presence of Turkish troops, which continues to constitute a threat for peace and security. We believe that the proposal by the Secretary General on the extension for six months of UNFICYP's term, with the present form and duties, is correct," he added.

    Lastly, the permanent representative at the UN (Greece is a non-permanent member of the Security Council over the 2005-2006 period), replying to a relevant question, clarified that on December 14, when the decision on the six-month renewal of UNFICYP's term will be adopted by the members of the Security Council, the issue of the corridor in Ledra street will not be discussed.

    [09] Yiannakou opens int'l conference in Paris on digital technology in schools

    PARIS, 9/12/2005 (ANA/O. Tsipira)

    Education and Religious Affairs Minister Marietta Yiannakou on Thursday opened the 6th international conference on the introduction of digital technology in schools. Yiannakou was the official guest of her French counterpart Gilles De Robien.

    Taking part in the conference, titled "EMINENT", are 27 European countries and attracts in its two-day sessions more than 200 experts on logistics, digital technology and training.

    Speaking to reporters, Yiannakou referred to the positive role which this conference can play in the general effort, noting that "it would not be harmful if Europe could also acquire a special satellite which would concern training in all of Europe instead of proceeding through conventional lines."

    The "Learning" prizes will be awarded on Friday. Information on the participations and awards will be published on the website http://elearningawards.eun.org.

    [10] Seminar for SE Europe deputies for combatting of organized crime begins in Thessaloniki

    9/12/2005 (ANA)

    A two-day seminar for deputies of countries from Southeast Europe, with the purpose of offering information on issues regarding human trafficking, illegal immigration, immigration aimed for employment, visas, asylum and the struggle against organized crime began in Thessaloniki, Macedonia, on Thursday at the initiative of the European Commission, the alternative headquarters of the Stability Pact and the King Baudouin Foundation.

    As stressed by the rapporteurs, they are topics which have been described by the European Union as being of particular importance in the EU's relations with the region's countries.

    In his introduction, the head of the headquarters of the Pact in Thessaloniki, Veniamin Karakostanoglou noted that the criminal elements which are active in the region have exploited the progress in technology and stressed that the answer must be overall, as, the combatting of organized crime is necessary for the growth of the region's countries.

    Karakostanoglou presented the Pact's initiative on the issue, making also particular reference to the initiatives being taken by Greece as presiding country of the initiative of Southeast Europe, among them being the ministerial meeting which will be held in Loutraki, in the prefecture of Corinth, on February 8. The meeting will be preceded a week earlier by a seminar for the heads of police, public prosecutors and of the customs authorities of the region's countries for the combatting of the trafficking of narcotics and people.

    Christiane Kirchbaum presented the general principles of the procedure for decision-taking in the European Union, while Jelena von Heldoff, on behalf of the King Baudouin Foundation, summed up the course of European policy up to the summit at The Hague in 2004.

    [11] U.S. State Department avoids comment on November 17 group

    WASHINGTON, 9/12/2005 (ANA - T. Ellis)

    Deputy U.S. State Department spokesman Adam Ereli, speaking at a regular press briefing on Thursday, avoided making any public statement on whether the leader of the November 17 terrorist group and all the members of the organization have been arrested.

    Speaking in general, Ereli said "what is important is that all of us who are threatened by terrorism must do all that we can to act with determination against terrorist organizations."

    [12] Protection of minority rights a problem in Albania, European Commission finds

    BRUSSELS, 9/12/2005 (ANA/M. Spinthourakis)

    The European Commission finds protection of minority rights to be problematic in Albania, while the country's authorities refuse to carry out a new census as requested by the European Union, European Commissioner for Enlargement Olli Rehn said on Thursday.

    Rehn's comments were made in response to ruling New Democracy MEP Costas Hatzidakis' question regarding the status of minority groups in Albania.

    According to a statement by Hatzidakis, the Greek minority in Albania continues to face problems despite national authorities' promises to address them.

    It is for this reason that the MEP called on the Commission to state its position on four issues of major importance for Albania: compliance with the treaty of the Council of Europe regarding minorities; education; a new census; and returning property to its rightful owners.

    Commenting on Rehn's answers, Hatzidakis said that "Albania's European course has certainly contributed to safeguarding certain basic rights of the Greek minority. However, there is definitely much room for improvement as are requirements in the specific sector. What is certain, is that there will be no European prospect for Albania if it does not learn to respect and support minority rights."

    [13] High-profile attorney/MP to meet with magistrate probing trial-fixing charges on Monday

    ATHENS, 9/12/2005 (ANA)

    Noted defense attorney and independent MP Petros Mantouvalos on Thursday was given an extension until Monday to appear before a special appellate-level magistrate heading an unprecedented trial-fixing investigation that have so far implicated more than a dozen judges and lawyers.

    Mantouvalos, elected on ruling New Democracy's ticket in the March 2004 from Piraeus' 1st election district before resigning recently from the party's Parliament group and declaring himself an independent, was stripped of his Parliamentary immunity from prosecution last week. Mantouvalos, in fact, called on fellow deputies to vote in favor of the lifting, stressing that he wanted to clear his name in any subsequent investigation.

    The well-known attorney came under scrutiny after judicial investigators discovered that a lawyer/associate employed at Mantouvalos' law firm deposited roughly 7,000 euros into the bank account of a judge, Evangelos Kaloussis, who was later cashiered and is currently jailed on bribery and trial-fixing charges.

    Mantouvalos is being investigated for bribery and money laundering charges.

    [14] Amendment for possibility of cremation in Greece submitted by 10 deputies

    ATHENS, 9/12/2005 (ANA)

    An amendment favoring the enactment of the possibility of cremation in Greece, for those whose religious convictions did not forbid this while they were alive, was submitted on Thursday by 10 deputies of the ruling New Democracy, main opposition PASOK and Coalition of the Left parties.

    According to the amendment, the lack of a cremation centre for the dead in Greece constitutes a violation of article 13 of the constitution on the inviolability of religious freedom, as well as of international treaties on human rights that Greece has signed.

    The possibility is being proposed for permission to be granted for cremation of a person, whose religious convictions permitted this while he was alive, on condition of the "unreserved and without terms and conditions explicit declaration by the person himself while he was alive, or an official declaration by the next of kin of the deceased that this was his expressed desire."

    The amendment was signed by the ruling New Democracy party Deputies Miltiades Evert, Kyriakos Mitsotakis and Nikos Georgiadis, the Deputies of the main opposition PASOK party Maria Damanaki, George Floridis, Nasos Alevras, Theodoros Pangalos and Panayiotis Sgouridis, the President of the Coalition of the Left, Movements and Ecology party Alekos Alavanos and the party's Deputy Fotis Kouvelis.

    [15] Finmin sanguine about economy's outlook in address to ND MPs

    ATHENS, 9/12/2005 (ANA)

    Finance Minister George Alogoskoufis was firmly upbeat about the outlook of the Greek economy in his address to New Democracy's parliamentary group on Thursday, predicting that 2006 would see the public deficit dropping to below 3 pct in GDP and a rise in both productivity and employment.

    Taking the stand after Prime Minister Costas Karamanlis, Alogoskoufis stressed that the government - in spite of the "huge difficulties" and "hidden deficits" inherited from its predecessors - had successfully implemented a policy of mild adjustment and managed to reduce the deficits without confirming the main opposition's dire predictions of recession and rising unemployment.

    Instead, with a performance unprecedented in the recent history of the EU, the Greek economy had achieved a notable growth rate of 3.6 pct in 2005 while unemployment had dropped by half a percentage point, he added.

    According to Alogoskoufis, the coming year was even more crucial and the government's priorities would be to reduce the public deficit to below 3 pct of GDP, to increase productivity and competitiveness through structural reforms and to increase employment with targeted activities for the reduction of social exclusion risks.

    He said the immediate goals of the 2006 budget were to reduce the deficit to 2.6 pct of GDP and to further reduce public debt, while reinforcing growth and social cohesion. He also stressed the government's determination to deal with tax evasion, which he described as a chronic structural problem of the Greek economy, with the use of new technologies.

    The minister stressed that the government would continue its policy of reforms in order to restructure the Greek economy:

    "We are moving things forward and placing the country in a cycle of long-term and sustainable development, creating the conditions for individual and social prosperity," Alogoskoufis added.

    [16] Development minister stresses energy policy

    ATHENS, 9/12/2005 (ANA)

    Addressing the parliamentary group after Alogoskoufis, Development Minister Dimitris Sioufas emphasized the government's energy strategy and stressed that the present government was now making notable progress in several international energy projects, such as the Greek-Turkish natural gas pipeline, an undersea pipeline to Italy or the Burgas-Alexandroupolis oil pipeline.

    Sioufas stressed that Greece had "escaped" from the inertia and inaction of the past and that during its 20 months in power, the present government had begun building a "human-centered model for growth that was not built in 20 years of PASOK governments".

    Noting that these policies were now beginning to yield results, Sioufas said that the climate was changing and that Greece was now entering a "new developmental track" and "an era of great opportunities".

    Mixed messages from employers, trade unions: The parliamentary group meeting was also addressed by employer associations and trade union organizations, with one side pressing for more reforms while the other highlighted the problems faced by workers, farmers and low-income groups.

    The head of the General Confederation of Employees of Greece (GSEE) Christos Polyzogopoulos criticized the government, stressing that the problems of workers were increasing and remained unsolved, while he accused ministers of failing to respond to calls for dialogue and claimed that "not everything" reached the ears of the prime minister.

    According to the president of the civil servants' union ADEDY Spyros Papaspyros, meanwhile, the 2006 budget would lead to smaller incomes and more taxes for employees and greater difficulty in meeting rising living costs.

    The Union of Greek Industry, on the other hand, said society was ripe for more reforms and that the government should not hesitate and called for further curbs to public spending. This was also supported by Greece's National Trade Confederation (ESEE) President Dimitris Armenakis, who said the program of reforms could be more daring and called for bolder privatizations.

    General Confederation of Light Industry and Commerce of Greece (GSEBEE) President Dimitris Asimakopoulos, meanwhile, underlined the need to incorporate new technologies in the Greek economy and stressed that Greece spent less on research than any other developed country.

    [17] PPC barred from tender for 900MW power stations, minister confirms

    ATHENS, 9/12/2005 (ANA)

    Development Minister Dimitris Sioufas on Thursday confirmed that the Public Power Corporation (PPC), Greece's state-run power utility that has monopolized the domestic electricity market up until now, will be barred from the tender for the construction of 900MW private power stations.

    Speaking at the 10th National Energy Conference "Energy and Development 2005" organized by Southeast Europe Energy Institute, Sioufas pointed out that the ban had also been imposed by the previous government and was necessary, otherwise Greece faced legal action from the EU.

    He denied that the PPC was barred from the construction of new power units in general, saying that there was nothing preventing the power utility from building new lignite plants in Drama or Elassona where there were lignite deposits, provided it met the legal requirements.

    Sioufas said that the terms of the tender for 900MW power stations will be made public and that a draft bill setting up a National Council for Energy Strategy will be tabled in Parliament next week.

    The minister stressed that the priorities in energy policy were to deregulate the markets and build infrastructure that will make Greece an energy junction, while reducing dependence on oil and enhancing energy savings.

    The conference was also addressed by main opposition PASOK MP Yiannos Papantoniou, a former finance minister, who stressed that he was a "fanatical supporter" of deregulating markets. He criticized the government's handling of the PPC, however, noting that under the previous PASOK government it had been highly profitable and was now caught up in a storm of scandal-mongering and disputes among its top management.

    [18] EU Commission to probe state aid to Greek vehicle industry ELBO

    BRUSSELS, 9/12/2005 (ANA V. Demiris)

    The European Commission on Thursday decided to launch a formal investigation into state aid received by Hellenic Vehicle Industry (ELBO) in the past and whether this was compatible with Community directives and rules.

    The investigation will examine the impact of a government decision in 1999 to write off the company's debts to the public sector, which came to 3.5 million end had accumulated between 1988 and 1998.

    According to Greece, this assistance only favored ELBO's military production and thus falls under articles in EC treaties that allow derogations from the general ban on state aid for reasons that are directly linked with essential interests of national security.

    This claim is disputed by the Commission, however, which questions whether the debt write-off can have exclusively favored the company's activities on behalf of the military and asserts that the civilian production also benefited as a result.

    "The EC Treaty ensures that Member States can protect their legitimate national security interests. But this safeguard cannot be used as a pretext for granting illegal state aid to civilian activities. We have to examine such cases with care in order to prevent distortions of competition on markets for civilian products" Competition Commissioner Neelie Kroes said.

    ELBO is the main supplier of motor vehicles to the Greek army, with around 750 employees and an annual turnover of about ¬ 150 million. In addition to military vehicles, such as tanks and armored vehicles, ELBO produces civilian vehicles and products that can be used for military as well as civilian purposes, such as jeeps and spare parts. In 1999, when the aid measure was adopted, ELVO's civilian production constituted a substantial part of its total turnover.

    The Commission claims that Greece has failed to provide arguments supporting its claim that the aid favored military production only and the Commission has therefore concluded that only part of the aid falls under the scope of national security articles, while the rest has to be examined under state aid rules.

    [19] Salagoudis in Sofia to attend meeting on SE Europe Energy Community

    ATHENS, 9/12/2005 (ANA)

    Deputy Development Minister George Salagoudis was due to depart for Sofia on Thursday to take part in the sessions of the Ministerial Meeting in the context of the Treaty for the Founding of Southeast Europe's Energy Community.

    Analyzed at the meeting, for approval, will be the conclusions which have been adopted by the High Level Group established in Vienna in July, 2005.

    The agenda of the meeting includes issues such as the Strategic Plan for natural gas, the approval of the Energy Infrastructures Plans and their funding by the Regional Funds, the approval of the social matters related to the transitional stage of the energy sector in the region, the approval of the status of Observer for Ukraine and the reconfirmation of the status of observer for Norway and Moldova.

    [20] Gov't wants banks to curb rolling rate cost down to public

    ATHENS, 9/12/2005 (ANA)

    The government is to ask banks to show restraint in rolling the cost of higher euro interest rates down to customers, Deputy Finance Minister Petros Doukas said on Thursday.

    Banks would also be asked to set clear-cut terms in contracts with borrowers, Doukas told parliament.

    He was replying to a question from the Coalition of the Left, Movements and Ecology on the impact of a rate rise by the European Central Bank.

    [21] Monitoring Committee of 3rd Community Support Framework holds meeting

    ATHENS, 9/12/2005 (ANA)

    The absorption of funds from the 3rd Community Support Framework (CSF) amounts to 35.3 percent, while legal commitments undertaken amount to 56 percent of funds, according to data provided by the Monitoring Committee of the 3rd CSF.

    As mentioned during the Monitoring Committee's meeting, if proclamations already publicized, which are expected to be turned into contracts in the near future, are also taken into consideration, then the percentage of commitments exceeds 60 percent. It was pointed out that the remaining 40 percent will have to be turned into contracts by the end of 2006.

    Referring to the course of the 3rd CSF during the meeting, Deputy Finance and Economy Minister Christos Folias said that through the revision of the CSF a further 205 million euros were transferred to regions and that major road projects are being carried out in regions, while expressing regret because 13 technical consultants who will assist the implementation of the projects have not yet been established.

    [22] PASOK party cadre comments on 3rd Community Support Framework

    ATHENS, 9/12/2005 (ANA)

    Main opposition PASOK party Economy Sector chief Vasso Papandreou spoke of a "tragic failure in utilizing European Union funds" in referring to data on the course of the 3rd Community Support Framework (CSF) as they were presented at the 8th Monitoring Committee on Thursday.

    "The government is proving incapable of absorbing the funds and our country is being led to huge losses of EU funds with mathematical precision," she said.

    According to Papandreou, the absorption of funds in 2004 decreased by 4.2 percent compared to 2003 while in 2005, until November 15, by about 40 percent, and as a result Greece must absorb almost 7 billion euros a year over the next three years, while this year, until November 15, less than 2 billion euros had been absorbed.

    [23] Papoulias opens exporters' conference

    ATHENS, 9/12/2005 (ANA)

    President of the Republic Karolos Papoulias on Thursday inaugurated an international conference organized by the national society of exporters on the occasion of the 60th anniversary of the group's founding.

    In a brief address, Papoulias said a more export-driven economy is a national target, especially in an increasingly competitive global market. He also said 12.3-percent rise in Greek exports over the Jan-Sept 2005 period -- in comparison with the corresponding period in 2004 -- was particularly encouraging.

    [24] Greek products hold third place in American consumers' preference, U.S. ambassador says

    ATHENS, 9/12/2005 (ANA)

    U.S. Ambassador to Greece Charles Ries, addressing the conference of the Panhellenic Exporters Association on Thursday, said that Greek products hold third place, after the French and Italian ones, in the American consumers' preference, according to a survey carried out recently in his country.

    The ambassador stressed the fact to show that possibilities exist for the speedy infiltration of the U.S. market by Greek products, in cooperation with major retail dealers.

    Referring to the investments environment in Greece, Ries said that considerable improvements have been made but a further effort is necessary in such sectors as taxation, bureaucracy, energy deregulation, etc.

    He also noted that what remains a stumbling block for investments activity in Greece is the country's low reputation regarding transparency. Corruption must be combated because investing businesses want a stable and clear environment.

    [25] Transport Minister meets with Bulgarian counterpart

    ATHENS, 9/12/2005 (ANA)

    Transport and Communications Minister Michalis Liapis and his Bulgarian counterpart Petar Mutafchiev on Thursday discussed the promotion of the luxury-train connecting Sofia and Thessaloniki as well as the Greece's proposal, as President of the Southeast European Cooperation Process (SEECP), to create a luxury-train network among southeast Europe's major cities.

    The two ministers signed a joint declaration agreeing to: upgrade transportation infrastructure along Pan-European Axis IV and particularly the Axis IV rail network (Thessaloniki-Sofia-Vidin Kalafat) by 2011; to build a highway by 2013; and to link Thessaloniki with the Bulgarian city of Lom by road and by rail, by 2013.

    [26] Coalition leader visits power plant in Megalopoli

    9/12/2005 (ANA)

    The leader of the Coalition of the Left, Movements and Ecology (Synaspismos) Alekos Alavanos on Thursday paid a visit to a power plant in Megalopoli belonging to the Public Power Corporation (PPC), Greece's state-run power utility.

    He said the visit aimed to signal that the PPC was not made up of the few people, like former PPC president Ioannis Paleokrassas or PPC managing director Stergios Nezis, who had dominated the news in the past week but also tens of thousands of ordinary employees working in difficult and often hazardous conditions.

    Alavanos stressed that 85 PPC employees had been killed and dozens of workplace accidents had occurred at the PPC over the past 10 years alone, while he strongly criticized government attempts to strip away rights acquired by the workforce and expressed concern at a draft bill to deregulate the energy market.

    He also asserted that the government's bill for public utilities and state enterprises, known as DEKO in Greece, effectively abolished collective agreements and he urged all wage-earners to participate in the strike called by trade union organizations on December 14.

    The Coalition's leader underlined, meanwhile, that an attempt was being made to carve up the PPC and give it to private interests, along with company infrastructure that had been built with the money of Greek taxpayers.

    [27] Foreign banking groups may find Greek partners

    ATHENS, 9/12/2005 (ANA)

    Major foreign banking groups may enter Greece through alliances with one or more of the country's top five banks, the chairman of Marfin Bank, Andreas Vyenopoulos, said on Thursday.

    He was addressing a banking conference in Athens arranged by The Economist business magazine.

    [28] Credit Agricole to take part in Emporiki's share cap rise

    ATHENS, 9/12/2005 (ANA)

    Credit Agricole is to take part in a share capital increase planned by Emporiki Bank, management of the Athens-quoted Greek credit institution said on Thursday.

    The French bank in a strategic investor in Emporiki and owns 10% of its stock.

    [29] Greek exports to Balkans rise

    ATHENS, 9/12/2005 (ANA)

    Deputy Foreign Minister Euripides Stylianidis said on Thursday that Greek exports to the Balkans had risen by 10%, leading to a decline in the trade deficit with the region.

    The minister was addressing a conference arranged by the Panhellenic Exporters Association to celebrate 60 years since its foundation.

    Stylianidis laid emphasis on the government's drive to boost economic diplomacy, including in the energy sector.

    Also speaking at the event was Development Minister Dimitris Sioufas, who outlined moves the government had taken to increase exports.

    Rise in Greek exports to Romania: Greek exports to Romania rose by 5.3% in January-October against the same period a year earlier to total 296 million euros, according to the Greek embassy in Bucharest.

    The value of Romanian imports to Greece fell by 10.79% to 441.56 million euros, the embassy's bureau of economic and trade affairs said in a report.

    The trade deficit for Greece with Romania narrowed by about 57.4% to 102.46 million euros, the report noted.

    [30] OA launches e-check in for domestic flights

    ATHENS, 9/12/2005 (ANA)

    Olympic Airlines has launched online check-in for its domestic flights in an effort to upgrade its services, the company announced on Thursday.

    The new service allows passengers traveling on domestic flights and without baggage to check-in electronically and choose their seat from between 24 to 4 hours before departure.

    [31] Athens Bourse Close: Stocks drop

    ATHENS, 9/12/2005 (ANA)

    The Athens share index closed at 3,512.02 points, showing a decline of 0.65%. Turnover was 203.0 million euros.

    The FTSE/ASE-20 index for high capitalization shares ended 0.75% down; the FTSE/ASE-40 for medium cap stocks closed 0.61 lower; and the FTSE/ASE-80 for small cap shares finished 0.43% up.

    Of stocks traded, declines led advances at 148 to 120 with 131 remaining unchanged.

    Stock Futures:

  • Most Active Contract (volume): OTE (2448)

  • Total derivatives market turnover: 85.8 million euros

    Bond Market Close: Buyers match sellers

  • Greek benchmark 10-year bond (exp. 20.7.2015): 3.57% yield

  • German benchmark 10-year bund: 3.36%

  • Most heavily traded paper: 10-year bond, expiring 20.7.2015 (800 mln euros)

  • Day's Total Market Turnover: 2.4 bln euros

    Foreign Exchange Rates: Friday

    Reference buying rates per euro released by the European Central Bank:

    U.S. dollar 1.185

    [32] Court rules against broadcast of N17 appeals trial

    ATHENS, 9/12/2005 (ANA)

    A five-judge appeals court on Thursday rejected defense motions requesting television coverage or videotaping of proceedings at the second instance trial of 15 "November 17" terrorists and two defendants acquitted in the first instance trial.

    The ruling follows a recommendation by the bench prosecutor against the motion, as well as objections by at least one N17 defendant and the majority of attorneys representing the ultra-leftist terror gang's numerous victims and relatives of victims.

    The decision, nevertheless, caused the ire of one of the most notorious convicted N17 terrorists, arch-assassin and self-described beekeeper Dimitris Koufodinas, who told the court that "prohibiting the broadcast (of proceedings) means, in essence, exclusion of the people".

    [33] Missing passenger ferry found

    ATHENS, 9/12/2005 (ANA)

    Italian authorities found the small, Honduran-flagged passenger ferry, along with its eight-member crew, that had been reported as missing by its owner, sailing east of Catania, Sicily on Thursday.

    The Greek coast guard had been conducting searches for the Africa Star when it was informed by Texas Shipping that it had gone missing while sailing west of the island of Cephalonia.

    No passengers were aboard the ferry that departed from Piraeus for Gibraltar on Wednesday.

    [34] Parliament to organize exhibition on political cartoons

    ATHENS, 9/12/2005 (ANA)

    President of the Republic Karolos Papoulias is to inaugurate an exhibition on "Political Cartoons" that will open in Parliament's exhibition space on Mitropoleos and Philellinon streets on December 12, 2005. It will be open daily from 10:00 to 20:00 and entry is free.

    The exhibition features the works of 29 Greek political cartoonists that have appeared in Athens daily and Sunday newspapers over the years.

    Special emphasis is given to Mentis Bostantzoglou (Bost), who also stood out for his work as a painter and theatrical comedies, and Vassilis Christodoulou, who was first published in 1948 and continues to produce cartoons to the present day, having created more than 140,000 cartoons over his long career.

    Christodoulou will be awarded a medal by Parliament President Anna Psarouda-Benaki for his contribution.

    [35] Athens Mayor hosts city's senior citizens

    ATHENS, 9/12/2005 (ANA)

    More than 2,000 senior citizens in the Greek capital and members of the Friendship Clubs attended the luncheon hosted by Mayor of Athens Dora Bakoyannis on Thursday, on occasion of the upcoming holiday season.

    "For all of us at the municipality of Athens you are our primary concern and our first, great love," Bakoyannis said.

    "Since we started work at the municipality one of the first goals we set was to renovate existing Friendship Clubs [for senior citizens] and create new ones. The goal has been achieved and we have already allocated funds in our budget for the creation of 12 new clubs to be added to the existing 19, the majority of which have been renovated," she added.

    Finally, Bakoyannis congratulated Deputy Mayor Tonia Kanellopoulou for her work in this area.

    [36] Greek-Turkish 'Games without borders' children's festivity in Ankara

    ISTANBUL, 9/12/2005 (ANA/A. Kourkoulas)

    On the occasion of "World Children's Day" on December 11, the Greek Embassy in Ankara, in cooperation with the Foundation "Sevda-Cenap and Muzik Vakfi", is organizing a festivity for children on the theme "Games without borders", according to a press release by the Greek Embassy in Ankara on Thursday.

    The festivity will comprise many artistic activities and will be held with the contribution of the children's choir of Ankara's district of Akyurt and by children of Greeks living in Ankara.

    The program will include paintings, theatrical and musical games, traditional games of the two countries and the performance of songs from the Akyurt children's choir.

    The festivity will be hosted at the Greek Embassy complex.

    [37] President Papadopoulos says Cyprus problem an EU-Turkey issue

    NICOSIA, 9/12/2005 (CNA/ANA)

    President of the Republic of Cyprus Tassos Papadopoulos said on Thursday that the continued occupation of Cyprus' northern third by Turkey cannot be relegated into a non-issue in the relations between Turkey and the EU and expressed hope that Turkey will rise to the challenge and, realizing its resulting obligations, will prove to be a reliable partner throughout its accession process and later within the Union.

    Receiving the credentials of the new Ambassador of the Republic of Portugal to Cyprus Antonio Jorge Jacob de Carvalho, President Papadopoulos expressed the conviction that the prospect of membership should provide an incentive for Turkey to cooperate on finding a fair and just settlement on Cyprus, based on European principles and values.

    Presenting his credentials, the Portuguese Ambassador said that ''today, as in the past, a consistent vision and a pragmatic leadership, motivated by the eternal values of each other's

    understanding and respect, and cemented by a permanent predisposition to engage in dialogue and to make compromises, are considered indispensable to overcome this new and troubled phase of transition in the history of mankind.''

    ''For at least the last half century, this attitude has been the essence and the cornerstone of the successful process of economic and political integration in which the Europeans are engaged, a true partnership for peace and progress that has always been oriented by the realistic principle of cohesion and the humanistic value of solidarity,'' he said.

    Replying, President Papadopoulos said Cyprus and Portugal maintain fruitful relations and belong to the same family of nations of the EU, adding that the government of Cyprus ''attaches particular

    importance to the maintenance and to the further strengthening of the close bonds of friendship and cooperation that already exist between our two countries on bilateral, European and global issues.''

    President Papadopoulos expressed the sincere appreciation and gratitude of the people of Cyprus and himself ''for Portugal's continuous support towards the efforts of finding a just and viable solution to our political problem.''

    ''Despite our continuous and genuine efforts throughout the years to reach a viable settlement, the Cyprus problem remains unresolved,'' he said, and reiterated his commitment to ''a solution of a bizonal, bicommunal federation that will bring about the reunification of our country and its people.''

    ''We remain committed to working constructively for such a solution that will serve the legitimate interests of the people of Cyprus as a whole. It is my sincere hope that it will eventually be acknowledged that, on the 24th of April 2004, the Greek Cypriots rejected the particular Plan on offer and not the solution of the Cyprus problem,'' he pointed out.

    Referring to Turkey's EU aspirations, President Papadopoulos said both countries have been strong supporters of Turkey's European perspective.

    ''It is our sincere belief that a 'European' Turkey will be to the benefit of all countries in the area, first and foremost its immediate neighbors. It was in this spirit, and in the face of a new wave of provocative statements by the Turkish government, that my government, in spite of such provocative attitude by Turkey, adopted a positive stance during last December's European Council,'' he said.

    The president added that ''our support of Turkish membership has been exhibited once again during the days prior to the launch of accession negotiations, in the face of continued Turkish refusal to recognize Cyprus.''

    ''Within the framework of this policy, we approach positively all developments that may enable the settlement of the problem, including the European aspirations of Turkey,'' he assured, but noted that ''it becomes more and more evident that Turkey does not opt for a similarly constructive stance.''

    He pointed out that the government of the Republic of Cyprus is ''extremely sensitive to any action, conduct or attitude of friendly governments or of their accredited representatives in Cyprus which may symbolically or otherwise encourage separate 'acknowledgement' of the secessionist and illegal regime in the occupied area,'' noting that ''this type of attitude also proves to be a counter-incentive to a solution of the problem of Cyprus, to the reunification of the country, its society, economy, territory and institutions.''

    President Papadopoulos noted that ''the continued occupation of our country cannot be relegated into a non-issue in the relations between Turkey and the EU'' and expressed hope that ''Turkey will rise to the challenge and, realizing its resulting obligations, will prove to be a reliable partner throughout its accession process and later within the Union.''

    ''We firmly believe that the prospect of membership should provide an incentive for Turkey to cooperate on finding a fair and just settlement on Cyprus, based on European principles and values,'' he said.

    [38] COREPER adopts text on Turkey's revised partnership

    BRUSSELS, 9/12/2005 (CNA/ANA)

    COREPER adopted in Brussels on Thursday the text of the revised partnership with Turkey, to be ratified on Monday by the General Affairs Council.

    The implementation of the customs union agreement with all the EU member states in 2006, the normalization of relations with Cyprus, the necessity to recognize the Republic of Cyprus, and the non obstruction of the accession of member states to international organizations are the fundamental terms set out for Turkey by the EU.

    On the Cyprus problem, Turkey is called on to guarantee the continuing support to efforts for a comprehensive settlement. COREPER furthermore notes that the solution should be within the UN framework and along the lines of the principles on which the EU is founded.

    Regarding Greek-Turkish relations, Ankara is called on to refrain from any activities that would cause problems to the peaceful settlement of differences with Greece. It is also called on to fully guarantee the rights of the Ecumenical Patriarchy.

    [39] Cyprus president says failure of talks would be devastating

    LARNACA, 9/12/2005 (CNA/ANA)

    President of the Republic of Cyprus and Democratic Party (DIKO) President Tassos Papadopoulos said on Thursday that the consequences from a failure of talks on the Cyprus problem that would not be well prepared for would be devastating, and expressed hope that the UN Secretary General would soon undertake an initiative on Cyprus.

    He added that the government was faithfully following the policy drafted by former presidents of the Republic Archbishop Makarios III and Spyros Kyprianou.

    Addressing a DIKO gathering in Larnaca, he said ''we have been constant and we have no transmutations or differentiations, we request a solution that will truly bring about the reunification of Cyprus.''

    President Papadopoulos reiterated that the Greek Cypriot community rejected the UN-sponsored solution plan in a referendum but not the solution of the problem, adding that ''we want a solution of the Cyprus problem and not the closure of the problem, we want a solution that will not be shaky and will not survive.''

    Referring to the concerns of the Greek Cypriot side, he reiterated that specific demands and changes to the plan proposed by UN Secretary General Kofi Annan were presented to the UN, in order to meet the concerns of the people.

    ''It is not up to us to undertake initiatives but mainly up to the UN Secretary General,'' President Papadopoulos said and expressed hope that Annan would launch an initiative to create the appropriate climate to resume the talks.

    He noted however that the consequences from a failure of talks that would not be well prepared for would be devastating.

    [40] Government proposes 'way forward' for Ledras street

    NICOSIA, 9/12/2005 (CNA/ANA)

    The Cyprus government proposes the immediate freezing of all activities currently going on in the area of Ledras and Ermou streets related to the crossing point and the initiation by UNFICYP of consultations with a view to determining the arrangements needed for the opening of a new unimpeded crossing point.

    In a proposal aiming to break the current deadlock, titled ''the way forward'' the government also notes the hope for the opening of Ledras Street, "as this will facilitate the development and general revitalization of the area, as well as economic integration and increased contacts between Greek Cypriots and Turkish Cypriots, as per the 26 April 2004 EU GAERC conclusions."

    It considers that in any practical arrangement for the opening of the crossing point all new structures to the south of Ermou Street and on both sides of Ledras Street must be removed, noting that "the passageway must be at a ground- level and hurdle-free, which in practice means the removal of the bridge."

    It further suggests that UNFICYP consider during the proposed consultations the defining of an area which would include the section of Ledras Street from Ermou Street up to the National Guard post as a civil-use area. In this framework, the Nicosia Masterplan team, within a period of six months to one year could be requested to submit a proposal for the restoration of buildings in this civil-use area.

    The government undertakes to ask the European Union to fund the projects, the proposal adds.

    Other elements which the government considers as minimum for the opening of the checkpoint is safety, noting that the area must be demined and buildings must be checked.

    Military forces and armaments on both sides within the vicinity of the prospective crossing point, must be withdrawn, the proposal concludes as the government suggests that UNFICYP will monitor compliance to this measure including "prohibition of any military presence in that area at any time."

    [41] UNFICYP says Turkish works at Ledra Street must cease

    NICOSIA, 9/12/2005 (CNA/ANA)

    The UN Peacekeeping Force in Cyprus (UNFICYP) notes that construction works undertaken by the Turkish side to open a crossing point at Ledra Street should cease, and that unilateral initiatives are incompatible with the spirit of the confidence building measures.

    In a press release on Thursday, UNFICYP states that it is ''unable to support or facilitate the opening of the proposed crossing at Ledra Street in the absence of the consent of both parties,'' adding that ''the mission's view is that while the construction undertaken by the Turkish side is outside the buffer zone, being to the north of the ceasefire line, it should cease.''

    ''Both sides should resume efforts to find mutually acceptable arrangements for the opening of Ledra Street crossing,'' UNFICYP notes.

    It adds that it has ''protested the fact that, even as the Security Council met on Wednesday in New York to discuss the Secretary General's report on the renewal of the mission's mandate, Turkish Cypriot workers seeking to clear rubble from an area adjacent to the construction site crossed into the buffer zone.''

    ''Last month, despite repeated cautionings by UNFICYP and other UN officials not to raise hopes unnecessarily, representatives on both sides persisted in proclaiming that the Ledra Street crossing could be open by Christmas. This presupposed the parties' mutual agreement on a work plan and schedule and a joint commitment to proceed.

    Instead, the Turkish Cypriot side opted to act preemptively to execute this project, and persists unilaterally toward an objective that by definition must be bilateral,'' UNFICYP notes.

    It also points out that ''regrettably, unilateral initiatives are incompatible with the spirit of the confidence building measures that have driven the carefully coordinated effort since April 2003 to promote and ensure the orderly opening of crossing points on the island.''

    ''UNFICYP is reviewing the proposal submitted by the Greek Cypriot side. The mission remains ready to facilitate a process whereby the two sides cooperate in good faith with each other and with the UN to open a crossing for civilian use in the Ledra Street area,'' it concludes.


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