Athens News Agency: Daily News Bulletin in English, 05-12-13

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

CONTENTS

[01] Papandreou says PASOK's credibility a primary criterion for victory in next election

[02] Gov't spokesman responds to PASOK's criticism

[03] Former OEK president denies charges, gov't seeks investigation

[04] Labor minister meets Supreme Court Prosecutor over Emfietzoglou charges

[05] EU foreign ministers take no decisions on fiscal prospects

[06] EU foreign ministers council takes no decision on FYROM accession candidacy status, foreign ministry announcement says

[07] Bomb blast outside ELTA on Syntagma Square causes extensive damage, three people injured

[08] Government on Syntagma blast, police response

[09] Gov't will not tolerate corruption, ND secretary says

[10] Cabinet, KYSEA meetings to take place on Tuesday

[11] Greece united in foreign policy on Turkey, former PM Mitsotakis says

[12] Independent MP Mantouvalos appears before investigator probing trial-fixing ring

[13] Municipal and prefectural elections have general political character, KKE leader says

[14] Country has entered austerity cycle of indeterminable duration, Coalition party leader says

[15] Central bank urges more structural change to the economy

[16] Average harmonized inflation at 3.5% in 2005

[17] Trade unions stage strikes protesting gov't reform

[18] Civil aviation workers to join 48-hour strike

[19] Development minister discusses energy, trade cooperation with Israeli, Chinese, Ukraine, Bosnia-Herzegovina envoys

[20] National Bank president urges businessmen in northern Greece to continue what they are doing successfully

[21] Ignorance key cause of problems in IFRS adoption

[22] Six of 10 Greek workers employed in Attica in 2004, Hellastat finds

[23] Aegean Airlines buys eight Airbus A-320

[24] Macedonia-Thrace minister inaugurates Polis Convention Centre in Thessaloniki

[25] Coca-Cola HBC may launch offer for Cyprus franchise

[26] Athens Bourse Close: Stocks rise

[27] Top N17 terrorist again files motion to recognize 'political dimension' of committed crimes

[28] November 17 terror group still a threat, former premier Mitsotakis says

[29] Mitsotakis tours Papageorgiou hospital, calls it 'model' for health service

[30] President Papoulias inaugurates political cartoon exhibit

[31] Forces of evil acting in undermining way in country, Archbishop Christodoulos says

[32] Seminar focuses on intellectual property theft

[33] Onassis Foundation to host significant post-Byzantium exhibition in NYC

[34] Greek Olympic Games know-how in Beijing

[35] EU text on Turkey calls on Ankara to fulfill obligations

[36] Cyprus closely monitors Turkish actions, says government

[37] Cyprus to enter Eurozone provided social state is not sacrificed

[38] EU Commission: opening Ledra street important measure

[39] UN: Construction at Ledra Street should cease

[01] Papandreou says PASOK's credibility a primary criterion for victory in next election

ATHENS, 13/12/2005 (ANA)

Speaking at a Foreign Press Association of Greece luncheon, the former foreign minister said the current Karamanlis government's "untrustworthiness" is demonstrated by the fact that it has not fulfilled its pre-election promises since coming to government in March 2004, while charging that the government is also rudderless.

In answer to several topical questions, he said a high-profile draft bill being forcefully promoted by the government to reform and restructure various state-run utilities is not a reform but only part of cursory measures. Additionally, he said the ND government's reforms so far have failed, while adding that the reform packages disrupt labor relations.

He again referred to what he called a "Scandinavian model" for state sector enterprises, saying he's in favor of both "flexibility and security", whereas whatever changes must be implemented with negotiations.

The government recently unveiled a draft bill that, among others, ends civil servant-like tenure for new hirings at state-run utilities (telephony, power, water etc.) that are both listed and not listed on the bourse.

In response to a bevy of questions involving church-state relations, Papandreou said each side's role should be distinct, whereas his PASOK party will soon be in a position to table proposals delineating each side's role. Along those lines, he again expressed his opposition to a recent decision upgrading church-run tertiary education institutions.

Meanwhile, asked about his party's position regarding the prospects of allowing the marriage of gays in the country -- an idea that has generated a caustic reaction by the Church of Greece -- Papandreou said PASOK is studying a proposal for a future "cohabitation pact" that will relate to heterosexuals as well as homosexuals.

Asked about recent high-profile statements over his party's "renewal" -- a phrase initially inferred as affecting a handful of top PASOK cadres that held top ministerial positions in the previous Simitis governments - Papandreou said every cadre is judged by his political presence. He added that PASOK, in government between 1981-1989 and 1993-2004, has proceeded with more radical internal changes than the ND government has made during its 11 years as the main opposition.

[02] Gov't spokesman responds to PASOK's criticism

ATHENS, 13/12/2005 (ANA)

"Serious politics are constructive not destructive, they provide solutions to citizens' and society's problems," Roussopoulos said.

"It's completely irresponsible to say 'yes' - in general and vaguely - to change and reform without defining the changes and reforms nor explaining how you intend to accomplish them," he added.

[03] Former OEK president denies charges, gov't seeks investigation

ATHENS, 13/12/2005 (ANA)

Economopoulos, who resigned over the weekend in the wake of the press reports, stressed that he had personally asked Labor Minister Panos Panayiotopoulos to ensure that the public prosecutor initiated an in-depth investigation into the affair.

He said that he had resigned for reasons of propriety and in order to facilitate the work of the minister and the government.

Concerning the substance of the charges, Economopoulos said that all OEK projects had been assigned to contractors through tenders in which all legal procedures had been observed and that none had been assigned directly.

The same was true for the construction firm "Mechaniki" run by Prodromos Emfietzoglou, who had won a contract through a tender for a project that was now being carried out normally under the supervision of a team of civil engineers, the former OEK chief added.

Economopoulos said that he had asked OEK's accounts office to prepare a full report on the invoices submitted by Athens-listed Mechaniki and all cheques paid out to the company, in order to fully demolish the fabricated claim that payments had been delayed.

He also denied that there had been any complaint from Mechaniki or that Emfietzoglou had at any time either contacted or requested anything of him, while hinting that political scheming lay behind the attack against him.

[04] Labor minister meets Supreme Court Prosecutor over Emfietzoglou charges

ATHENS, 13/12/2005 (ANA)

As he left the Supreme Court in the morning, the minister stressed that neither he nor the prime minister's office had received any letters from Emfietzoglou or his company complaining about Economopoulos.

Commenting on the affair during the regular press briefing, meanwhile, government spokesman Theodoros Roussopoulos reiterated that no letter of complaint from Emfietzoglou had been received by the government, which he said was following its standard policy of ensuring a full investigation into all allegations, indications or evidence of corruption.

"A government would be lacking in seriousness if it pretended not to understand, not to hear and did not investigate. If some have become used to such practices, it is not the way of New Democracy's government," he stressed, saying that Panayiotopoulos had "an obligation" to investigate the matter.

[05] EU foreign ministers take no decisions on fiscal prospects

BRUSSELS, 13/12/2005 (ANA - M. Spinthourakis)

In the first case, the British EU presidency postponed the presentation of new proposals on EU budgets for the 2007-2013 period until Wednesday. In the second case, France raised reservations, considering that at the present stage necessary economic and institutional conditions which would allow the EU to enter the process of a new enlargement. Consequently, both issues will be discussed at the EU summit do not exist.

As regards the FYROM issue, diplomatic sources said that Greece listened favorably to France's objections, despite the fact that EU documents related to FYROM's European prospects have included Greek aims on the issue of finding a mutually acceptable solution to the problem of the country's name and although speaking on the issue during the meeting, British Foreign Minister and Council President Jack Straw made a statement that was very satisfactory for Greece.

Straw pointed out in his statement, which was recorded in the meeting's official minutes, that until a final solution to the problem is found the only name acceptable for the EU is Former Yugoslav Republic of Macedonia.

[06] EU foreign ministers council takes no decision on FYROM accession candidacy status, foreign ministry announcement says

ATHENS, 13/12/2005 (ANA)

The announcement said that Greece will make its decision in the framework of its wider policy on the Balkans, jointly considering all parameters during the upcoming European Council at the same time.

Wider concern existing in Europe on the policy of further EU enlargements is known, the announcement added.

The foreign ministry's announcement pointed out that in any case, however, FYROM will need the support of every member-state, and evidently that of Greece as well, during its long and difficult European course.

[07] Bomb blast outside ELTA on Syntagma Square causes extensive damage, three people injured

ATHENS, 13/12/2005 (ANA)

The three injured persons were taken to Erythros Stavros Hospital. Two of them have been released, while the third - more seriously injured - remains in hospital where he underwent surgery. However, his condition is not critical, according to doctors.

The strong explosion occurred at 6:08 a.m. on the corner of Mitropoleos and Nikis street, outside the ELTA branch, following a call at 5:40 a.m. by an anonymous caller to the Athens daily Eleftherotypia warning of an impending powerful explosion "at a ministry on Syntagma Square". The newspaper immediately alerted the Athens security police operations centre, which urgently alerted in turn the police guards outside the Finance ministry and cordoned off the wider surrounds.

The caller did not claim responsibility for the attack on behalf of any organization.

As the wider area around the ELTA and next-door ministry were immediately cordoned off, no serious injuries resulted from the powerful explosion. Early reports said that two persons -- a man cleaning a store window and a woman passer-by -- were lightly injured by glass shards. Police said the explosion and ensuing soundwave shattered the windows of cars and shops and buildings -- as high as the 8th floor -- in the area.

Eyewitnesses told police that at 5:00 a.m. two young men left a fast-food delivery motorcycle outside the ELTA building. The home-made explosive device was hidden in the motorcycle's metal box in which food deliveries are transported.

According to the Fire Department's investigators, the mechanism did not appear to be connected to several propane canisters which had been left out on the street near the spot of the explosion throughout the night. Exposed propane canisters are usual in the area, as they belong to the shops and are left outdoors for pickup by companies that supply the shops with new canisters.

The area continued to be cordoned as of late Monday morning as police bomb disposal experts and Fire Department experts combed the area for clues and evidence.

Two subsequent callers phoned Eleftherotypia after the explosion, but no claim of responsibility has been made on behalf of any group.

[08] Government on Syntagma blast, police response

ATHENS, 13/12/2005 (ANA)

He stressed that the police had made announcements and that an investigation was continuing.

Roussopoulos underlined that the attack was an "important issue" and that police had intervened promptly after they were alerted to the bomb's presence.

He pointed out that the warning call received by the newspaper "Eleftherotypia" had reported that the bomb was placed outside the Finance ministry, which was on Karageorgi Servias street, while the bomb had actually been placed outside the Economy ministry that was on Nikis Street.

[09] Gov't will not tolerate corruption, ND secretary says

ATHENS, 13/12/2005 (ANA)

"No matter how many cases [of corruption] there are, they do not reverse the political volition of [Prime Minister] Costas Karamanlis and of New Democracy for zero tolerance of such phenomena," he said.

"The government's political volition is a given and its quick reflexes reinforce New Democracy's image for zero tolerance," he added.

[10] Cabinet, KYSEA meetings to take place on Tuesday

ATHENS, 13/12/2005 (ANA)

According to government spokesman Theodoros Roussopoulos, the cabinet meeting will be followed by a meeting of the Government Council for Foreign Affairs and Defense (KYSEA) to discuss ratification of the procurement of 30 F-16 fighter aircraft by the air force.

[11] Greece united in foreign policy on Turkey, former PM Mitsotakis says

ATHENS, 13/12/2005 (ANA)

He said that Greece has unity in its foreign policy, with respect to Turkey, adding that the disagreements existing between the two mainstream parties -- ruling ND and main opposition PASOK -- were on matters of tactics and not on the crux of the policy line.

"I consider it a great benefit, and I am certain that Greece will continue with this policy, regardless of the internal developments in Turkey," the former premier said.

Mitsotakis spoke well of Turkish prime minister Recep Tayyip Erdogan, but indirectly advised Greece's prime minister Costas Karamanlis not to schedule his planned official visit to Ankara at the present time, given the conjunctures, noting that, during his own tenure as prime minister, he had not gone ahead with his scheduled visit to Turkey because, "although everything had been prepared, I had set progress in the Cyprus issue as a prerequisite for the visit, which was not forthcoming from the Turkish side".

Mitsotakis further opined that Karamanlis was continuing on the road he had himself forged in Greek-US relations, recalling that in his days in government the US would seek Greece's opinion on regional issues in addition to bilateral matters, although they did not employ the term "strategic partner" at the time.

[12] Independent MP Mantouvalos appears before investigator probing trial-fixing ring

ATHENS, 13/12/2005 (ANA)

In exiting the courthouse, Mantouvalos appeared unfazed by the development, saying he expects "at least an apology by those that implicated me..."

Earlier, Volos-area lawyer Nikos Emmanouilidis was ordered to remain in the country after posting a 40,000-euro bond following his appearance before the same judicial investigator. The probe has so far focused on nearly a score of 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 felony bribery of a judicial officer and money laundering allegations.

[13] Municipal and prefectural elections have general political character, KKE leader says

ATHENS, 13/12/2005 (ANA)

Papariga stressed the need for the two mainstream New Democracy and PASOK parties to lose strength in the local elections for the benefit of tickets to be supported by KKE.

The KKE leader pointed out that a political atmosphere will be created in this way that will allow the disengagement of forces from the big parties and a popular counter-attack.

[14] Country has entered austerity cycle of indeterminable duration, Coalition party leader says

ATHENS, 13/12/2005 (ANA)

"The budgets in this country, particularly since the early '90s, obey a tough antisocial doctrine: they support profits and capital accumulation firmly, they privatize public enterprises and services, increase social inequalities, downgrade social expenditures, dissolve labor relations, swell unemployment and widen poverty," he said.

The Coalition party leader spoke of an unreliable budget that lacks transparency and has chronic structural problems.

Alavanos said that austerity begins from public administration and the wider public sector, but also spreads to the private sector as well and deals a blow at public investments and the social state, meaning the social and development functions of the state which should be supported.

[15] Central bank urges more structural change to the economy

ATHENS, 13/12/2005 (ANA)

"Both the current government and its predecessor took major steps in this area, although this has not been enough," Garganas said in Thessaloniki, where the Bank of Greece's general council held a meeting, also hosting a luncheon for northern business representatives.

"The unemployment rate remains unacceptably high despite the fact that the average rate of growth in the last six years is 4.0%. This shows that the problem is structural, that is to say linked to a lack of flexibility in the economy," he noted.

Joblessness was running at an average 10% in the first half of 2005.

The central bank governor also said that the current account deficit was disquieting.

"According to the new presentation of data, which excludes the capital transfer balance, it had fallen last year to 6.3% of gross domestic product from 7.2% in 2003, and is expected to increase again this year to touch 7.5% of GDP. A figure around 7.0% of GDP for a number of years shows that the country has a major competitiveness problem," the governor said.

Beyond strengthening competitiveness and productivity, emphasis must be laid on timely measures to tackle the problem of an ageing population.

"This means a policy is needed to increase the birth rate," he noted.

A high public debt, which was 109.3% of GDP in 2004, coupled with an anticipated increase in spending linked to the ageing population, made fiscal adaptation imperative.

The public debt as a proportion of GDP is targeted to fall to 60% by 2015 at the soonest, when spending on pensions will begin to rise as a percentage of GDP.

[16] Average harmonized inflation at 3.5% in 2005

ATHENS, 13/12/2005 (ANA)

But core inflation, which excludes energy and non-processed foodstuffs, would fall slightly to 3.2% from 3.4% in 2004.

"Concerning GDP in terms of the data currently at our disposal, we estimate a figure of about 3.5% this year," the central bank governor said.

Finally, he sent a message to the government and to unions on upcoming wage negotiations.

"It is especially important that both government incomes policy for state workers and collective bargaining between the social partners in coming months should contribute to nominal increases of average gross earnings in the private and public sectors in 2006-2007 that are compatible with the need to attain price stability," Garganas said.

Speaking on the sidelines of the bank's council meeting, the head of the Federation of Greek Industry, Odysseas Kyriakopoulos, reported that major problems for business included red tape, a lack of town planning, and delays in issuing permits.

[17] Trade unions stage strikes protesting gov't reform

ATHENS, 13/12/2005 (ANA)

The two trade unions have announced a nationwide strike on Wednesday, while GSEE has called a 24-hour strike exclusively at DEKO on Thursday.

Wednesday's strike means inconvenience for mass transport users. With the exception of the electric railway ISAP and the Metro, which will operate from 11 a.m. until 6 p.m., all other means of public transport will not service passengers.

The unions are opposed to the bill aimed at overhauling state-run enterprises, and are particularly opposed to article 14 which does away with collective bargaining.

The bill will be debated in Parliament on Tuesday.

[18] Civil aviation workers to join 48-hour strike

ATHENS, 13/12/2005 (ANA)

Also taking part are staff at Olympic Airways.

Air traffic controllers are to stage a four-hour work stoppage on Wednesday.

Severe disruption is expected in flights.

[19] Development minister discusses energy, trade cooperation with Israeli, Chinese, Ukraine, Bosnia-Herzegovina envoys

ATHENS, 13/12/2005 (ANA)

With Israeli ambassador Ram Aviram, Sioufas discussed cooperation in the sectors of research and technology, and energy.

During his meeting with Chinese ambassador Tian Xuejan, Sioufas also discussed prospects for further development of industrial cooperation between the two countries, in view of preparations for Greek Prime Minister Costas Karamanlis' imminent visit to China in January 2006. In that framework, it was agreed that further meetings would take place with all the agencies involved in order to examine the sectors presenting prospects for further cooperation.

The Chinese ambassador stressed Greece's role as an energy hub and as a springboard to the Balkans, SE Europe and the EU member countries for Chinese enterprises.

With Ukraine ambassador Valeriy Tsybukh he discussed cooperation in the natural gas sector, and the envoy briefed the minister on the agreement reached for the transport of Russian natural gas via Ukraine.

The Ukraine, Tsybukh said, places special importance on Greece as a strategic partner, especially in the energy sector.

With the new Bosnia-Herzegovina ambassador Milovan Blagojevich, Sioufas discussed prospects for the development of bilateral economic and trade relations. The new envoy placed great importance on the establishment of the Energy Community and Greece's particular role in the completion of negotiations and the signing of the Treaty on October 25 in Athens.

[20] National Bank president urges businessmen in northern Greece to continue what they are doing successfully

ATHENS, 13/12/2005 (ANA)

Arapoglou was addressing an event in Thessaloniki, Macedonia, on the official presentation of the five-volume book titled "History of enterprise in Thessaloniki", while speaking to reporters he also expressed the view that Thessaloniki can become the economic centre of the wider region.

"This cannot be done with offices and employees but with funding control and with strategic and appropriate coordination," he added.

[21] Ignorance key cause of problems in IFRS adoption

ATHENS, 13/12/2005 (ANA)

According to Zafiropoulos, Greek companies failed to prepare for adoption of IFRS despite an extension which pushed back the 2003 deadline as set by a European Union directive.

However, he noted that Greece is not alone in this since most countries around the world have faced similar problems.

Zafiropoulos explained that the adoption of IFRS is mandatory only for companies listed on the stock exchange and their subsidiaries, but added that in Cyprus, after a relevant agreement, all companies have adopted the international standards.

Constantinos Karamanlis, member of the Accounting Standards Council and president of the relevant legislative committee, provided an overview of the benefits companies can look forward to as a result of IFRS, such as a reduction in the cost of borrowing, data analysis, and training, while company information will become more reliable.

He added that the adoption of IFRS will not significantly affect small companies or accountants.

On his part, auditor Manos Pilidis referred to the difficulties companies face, such as insufficient literature available on the subject in Greek, an increase in the volume of accountancy work and confusion resulting from frequent revisions to existing IFRS.

[22] Six of 10 Greek workers employed in Attica in 2004, Hellastat finds

ATHENS, 13/12/2005 (ANA)

The study was carried out using a sample of 550,000 employees, or roughly 20 per cent of the total of employees throughout the country.

It also found that the Attica-based businesses in question accounted for 75 per cent of total earnings by 'Societe Anonyme' (A.E.) and 'Limited Liability' (E.P.E) companies in Greece and 87 per cent of total profits in the year 2004.

According to the study, there was a significant concentration of both the workforce and employment in Attica, given that unemployment figures in and around the capital were lower, in spite of efforts to boost enterprise and employment in other regions of Greece.

Excluded from consideration by the study were banks, insurance companies and state-run public utilities like Hellenic Telecommunications Organization (OTE), the Public Power Corporation (PPC) and Hellenic Petroleum (ELPE) because of their great size and the geographic dispersion imposed by their activities - even though these companies also showed significant concentration in the Attica prefecture. Altogether, these employed more than 50,000 people in 2004, the majority of which worked within the Attica prefecture.

Presenting the survey, Hellastat also noted that eight out of 10 of the businesses surveyed employed 50 people or less in 2004 - one of the criteria used by the European Union to define small or very small businesses, the other being businesses with an annual turnover less than ¬ 10 million.

Businesses based in Attica also enjoy higher average return on capital - estimated at around 3.7 pct for 2004 - relative to their country cousins and the rest of the Greek economy, where the average rate of return on capital is about 2.5 pct.

In some regions and sectors, meanwhile, this average can drop to negative figures. The service sector on Crete and the Ionian islands, for instance, recorded average returns on capital of -4.1 pct and -8.5 pct in 2004, respectively, which were chiefly due to poor performance by hotels.

[23] Aegean Airlines buys eight Airbus A-320

ATHENS, 13/12/2005 (ANA)

"This is one of the largest purchases in Greece's air transportation sector. It was preceded by many months of negotiations on the terms of the contract and on the choice of engines," Aegean's chairman and managing director, Theodoros Vasilakis, told a news conference.

Delivery of the jets, which are gradually to replace Aegean's existing fleet of Boeing 737s, will begin in 2008.

Neither Vasilakis nor Airbus' chairman and managing director, Gustav Humbert, revealed the purchase price. According to Vasilakis, the reference price for each aircraft is 58 million US dollars, but a discount was awarded.

[24] Macedonia-Thrace minister inaugurates Polis Convention Centre in Thessaloniki

ATHENS, 13/12/2005 (ANA)

Speaking to the Athens News Agency-Macedonian Press Agency, the managing director of the Polis SA company Evripidis Karavassilis said that the project's total budget amounted to 10 million euros, while procedures to expand the existing centre with a new wing will begin during the next 10 months. It will be an investment totalling seven million euros that will be completed in a period of 18 months.

The new convention centre in Thessaloniki is located at a distance of six kilometers from Macedonia international airport and 15 kilometers away from the city's centre. It has space covering a total area of 6,000 square meters; it has a capacity of 3,000 people and provides outdoor parking facilities for 500 motorcars.

[25] Coca-Cola HBC may launch offer for Cyprus franchise

ATHENS, 13/12/2005 (ANA)

Lanitis is engaged in the production, distribution and sales of commercial beverages and holds the franchise for products of The Coca-Cola Company in Cyprus. It also has a range of fruit juices, dairy products and other beverages, the Greek firm said in a statement.

Lanitis has been listed on the Cyprus Stock Exchange since October 2001.

Coca-Cola HBC, which said that it expects to make a further announcement concerning the possible offer by December 15 2005, is one of the world's largest bottlers of products of The Coca-Cola Company and has operations in 26 countries serving a population of approximately 540 million people.

Its shares are listed on the Athens Exchange, with secondary listings on the London and Australian Stock Exchanges; and the firm has American Depositary Receipts listed on the New York Stock Exchange.

[26] Athens Bourse Close: Stocks rise

ATHENS, 13/12/2005 (ANA)

The FTSE/ASE-20 index for high capitalization shares ended 0.74% up; the FTSE/ASE-40 for medium cap stocks closed 0.75 higher; and the FTSE/ASE-80 for small cap shares finished 0.79% up.

Of stocks traded, advances led declines at 153 to 128 with 50 remaining unchanged.

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