Athens News Agency: Daily News Bulletin in English, 06-03-15

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

CONTENTS

[01] Karamanlis says Ecofin's opinion confirms credibility of Greek economic program

[02] FinMin: ECOFIN decision justifies govt's economic policies

[03] EU finance ministers' council welcomes Greek government's efforts to reduce deficit

[04] Greece's economic effort over past 2 years earns Almunia praise

[05] President Papoulias terms his visit to Libya a success

[06] Inner Cabinet approves operational plan for 4th CSF

[07] PM to meet Belgian counterpart in Athens

[08] PM holds talks with health minister

[09] Foreign minister briefs main opposition sector chief Papoutsis

[10] Gov't sharply attacks Papandreou, PASOK over recent comments

[11] Mitsotakis accuses PASOK leader of 'irresponsibility', PASOK retaliates

[12] ND eurodeputies on Schulz letter

[13] Gov't on phone-tap affair

[14] European Parliament ratifies creation of new emergency funding

[15] Education minister meets presidium of teachers' federation

[16] SYN leader meets with Athens Mayor

[17] EU transport, energy ministers meet in Brussels

[18] Trade unions call nationwide general strike on Wednesday

[19] Bank employee unionists call for government initiative for dialogue on collective labor agreement

[20] Pan-Hellenic Seamen's Federation recourses to Council of State

[21] PM's message for International Consumer Rights Day

[22] Consumer Service Sector receives about 20,000 complaints in three years

[23] Main opposition spokesman on rising prices, re-establishing the state

[24] Tsitouridis says Social Security Foundation will be impressively upgraded

[25] Real estate market vital to Greek economic growth, report

[26] Papandreou criticizes what he calls excessive bonuses for OTE executives

[27] Purchasing power of four-member Greek family down 350 euros last year, report

[28] Greek delegation to participate in AGRITECH exhibition in Israel

[29] Greek stocks end 1.24 pct lower

[30] Evros flooding at 'unprecedented' level, government says

[31] Supreme Court rejects appeal by former appeals court president for passive bribery

[32] Briton charged in parents' murder to face prosecutor on Wednesday

[33] Icons from Albania on display at Thessaloniki's Byzantine Museum

[34] Leonardo Da Vinci exhibit opens in Athens on Wednesday

[35] Documentary Festival organizes conference on Africa

[36] Cypriot President: G/C side relies on Annan for the preparation of talks

[37] Cypriot President briefs National Council

[38] PACE new rapporteur on Cyprus elected

[39] British MPs express concern over Turkish proposals in Early Day Motion

[40] Finnish Premier to pay official visit to Cyprus

[01] Karamanlis says Ecofin's opinion confirms credibility of Greek economic program

ATHENS, 15/3/2006 (ANA/MPA)

The feedback received from the European Union Finance Ministers, who convened earlier on Tuesday in Brussels, on the country's stability and growth program for the 2005-2008 period, shows that the reforms the government has been implementing will be sufficient without additional measures being necessary, Karamanlis said.

He said that the government's fiscal adjustments are being vindicated and that the government followed a strategy that is bearing fruit.

"These results are not just numbers to appear on the next budget, it is the justification of the efforts of all those who believed that public finances could be 'cleaned up' because it is the only way that the Greek economy can grow competitively and we will create the steady foundations needed for an environment that is socially just and prosperous for all," he said.

"Citizens for the first time can, after many years, be optimistic that serious efforts ensure a secure and better tomorrow for everyone," he added.

He noted that the government came into office inheriting a deficit in 2004 of 6.6% of GDP - or ¬ 11 billion - twice as much the maximum Eurozone limit and five times as high as the amount the previous government had forecast in the 2004 budget.

Karamanlis stressed that the government reduced the deficit to 4.3% in 2005, while the forecast for the end of 2006 is for the deficit to fall below 3%.

[02] FinMin: ECOFIN decision justifies govt's economic policies

ATHENS, 15/3/2006 (ANA/MPA)

Speaking to reporters after an ECOFIN meeting in Brussels, Alogoskoufis said the Council, with its decision, stressed that the Greek program was reliable and that the government strictly adhered to its 2005 budget provisions, fulfilling its commitments with the aim to reduce its fiscal deficit below 3.0 percent GDP by the end of 2006.

He added that total adjustment in the period 2005-06 was four percentage points of GDP compared with 2004. "This is a very significant adjustment," Alogoskoufis said, adding that 3.5 percentage points were attributed to the introduction of structural measures by the government.

"2005 was a difficult year for the Greek economy, since it followed the Olympic Games and we have had to avoid the danger of economic recession," Alogoskoufis said. "With the right mixture policy and structural reforms, Greece achieved a 3.7 pct growth rate in 2005, among the highest in Eurozone, it reduced unemployment and achieved a very significant fiscal adjustment."

"The Greek government's effort was even harder since revenues were down compared with forecasts early last year. The government, however, acted swiftly to combat tax-evasion and its moves already bring results". Alogoskoufis said, adding that budget revenues were up 6.4 pct last year, exceeding a 5.0 percent budget target for the year.

Alogoskoufis also said that country's fiscal deficit fell to 4.3 pct of GDP last year, while public revenues jumped 17.7 pct in January, with VAT proceeds up 18.1 pct in the same month.

Moreover, he said the government aimed to continue efforts for economic restructuring in 2007 and 2008 with the aim to bring its deficit to 1.7 pct of GDP in 2008, strictly through permanent measures.

The EU acknowledges that the structural adjustment, included in the Greek state budget, was exceeding 0.6 pct of GDP as required by the Council and that the country's public debt was adequately reduced. Alogoskoufis said the Council's recommendations urged Greece to fully implement structural initiatives aimed to cut its fiscal deficit with the need of additional measures.

Alogoskoufis said the government and Eurostat would continue technical consultations for at least two months to agree on fiscal data on insurance funds and municipal authorities, although he stressed that the significance of any decisions resulting from these consultations would be only fractional.

Finally, the minister said that "patriotic economic protection" instances (in France, Luxembourg, Italy, etc) to prevent the sale of state enterprises to foreign investors, was not in the benefit of a country like Greece.

[03] EU finance ministers' council welcomes Greek government's efforts to reduce deficit

BRUSSELS, 15/3/2006 (ANA-MPA/V. Demiris)

The Council's opinion notes that, generally speaking, the program is compatible with the correcting of the excessive deficit by 2006, on condition that the program is fully implemented and that fiscal data are not revised.

It requests from Greece to apply necessary measures of a permanent nature that will lead to the correcting of the excessive deficit by 2006 at the latest and to further decrease the structural deficit towards the medium-term target set by the program, capitalizing on the favorable economic conjuncture so as to reduce first-stage expenditures.

In addition, it requests backing for efforts to determine and control other factors, apart from loaning, that affect the amount of the debt, to check expenditures for pensions and to implement with determination reforms already agreed on the pensioning system to secure the long-term viability of public finances.

Lastly, it must further improve the gathering and processing of general governance statistical data, primarily by upgrading apparatuses securing the immediate and appropriate provision of budget data, particularly in the social insurance sector.

[04] Greece's economic effort over past 2 years earns Almunia praise

BRUSSELS, 15/3/2006 (ANA-MPA)

Speaking at the end of a meeting here of economy ministers representing "euro zone" countries, Almunia said progress was clear and was not simply due to the conclusion of Olympics-related expenditure but due to a greater effort.

He also said that Greek Economy Minister George Alogoskoufis, who represented Athens, briefed him on Monday over the "extremely positive course" of state revenues in the first two-months of 2006, a development he said causes he to believe that Greece will meet its goal this year of reducing the budget deficit to under 3 percent of GDP.

He added that he would publish a forecast for the Greek economy on May 8 after Athens submits final budget figures for 2005, while he warned that this year's figures could be altered if the country does not obtain Eurostat's approval to use various methods to trim its budget deficit.

"We have to consider whether the budgetary objectives are realistic or not … At first sight, my impression is positive. The first couple of months' revenue figures are very good."

PASOK spokesman comments on PM's statement on ECOFIN's assessment: Main opposition Pan-Hellenic Socialist Movement (PASOK) Spokesman Nikos Athanassakis on Tuesday night commented on a statement made earlier in the evening by Prime Minister Costas Karamanlis on ECOFIN's assessment of Greece's stability and economic growth program.

"Prime Minister (Costas) Mr. Karamanlis decided to appear this evening on a national network, to repeat what the finance minister said earlier and to what he himself repeatedly and monotonously says in every statement and speech he makes, in yet another desperate effort to sell hope and optimism for the future."

The PASOK spokesman added:" The New Democracy government, (National Economy and Finance Minister George) Mr. Alogoskoufis, artificially raised and with their own exclusive responsibility the deficit and now the prime minister is rejoicing that it reduced it, because they did not have Olympic Games expenditures and dramatically cut the Public Investments Program at the expense of the regions, at the expense of growth, at the expense of the citizens."

Retaliating to Athanassakis' comments, Minister of State and Government Spokesman Theodoros Roussopoulos said "Mr. Athanassakis would do well to admit, even now, the responsibilities of the PASOK governments on the enormous deficits which they created and the state of the economy they left behind." Roussopoulos added:" Until he does so, for himself and his party, what is valid is 'it's better to remain silent'."

[05] President Papoulias terms his visit to Libya a success

TRIPOLI, Libya, 15/3/2006 (ANA-MPA)

Summing up the results of his visit to Libya, he told reporters during his flight back to Athens where he arrived early afternoon, that indicative of the good climate which prevailed during the talks he had with Libyan leader Muammar al-Qaddafi, was the fact that Qaddafi will receive the Greek ambassador to Libya on Wednesday so as to discuss in further detail the issues which the Greek president and Qaddafi had talked about during their meeting on Monday night.

"I will also soon do the same with the Libyan ambassador in Athens," Papoulias told the reporters who accompanied him, while he disclosed that he directed an official invitation to Muammar al-Qaddafi to visit Athens.

As for the practical results of the visit, the president noted that Culture Minister George Voulgarakis and Deputy Foreign Minister Evripides Stylianidis on Monday signed agreements-framework with Libya in the education and tourism sectors.

On Tuesday morning, Papoulias, accompanied by the members of the Greek delegation, visited the house of Muammar al-Qaddafi, which was bombed on April 14, 1986 by American aircraft. Many people were killed during the bombardment, among them one of the daughters of Qaddafi who managed to escape.

The Greek president later laid a wreath at the Monument of the Unknown Soldier and was given a tour of the archaeological museum in the Libyan capital.

[06] Inner Cabinet approves operational plan for 4th CSF

ATHENS, 15/3/2006 (ANA/MPA)

The session was chaired by Prime Minister Costas Karamanlis.

On his part, Pavlopoulos reiterated that such a plan did not exist for the 3rd CSF, which resulted in delays in the education sector. Additionally, he said the plan now takes into account the EU directives and the "particularities" of the public administration in Greece.

On their part, Development Minister Dimitris Sioufas and Education Minister Marietta Yiannakou briefed the Inner Cabinet on the final implementation of a program, "Diodos", allowing free Internet broadband access for college students and university staff.

Before the Inner Cabinet meeting, Karamanlis met jointly with Foreign Minister Dora Bakoyannis and Defense Minister Vangelis Meimarakis.

Pavlopoulos: The inner cabinet convened under the chairmanship of Prime Minister Costas Karamanlis on Tuesday and ratified the strategic plan on upgrading public administration and local administration, in the framework of the 4th Community Support Framework, covering the 2007-2013 period which was presented by Interior, Public Administration and Decentralization Minister Prokopis Pavlopoulos.

The issue concerns the transformation of the organization and functioning of public administration with the purpose of maximizing its performance and effectiveness with the preparation of an Operational Program whose management responsibility will be in the hands of a private law agency of the broad public sector (in the form of an SA company) which will be completed by the end of May.

This agency will develop the necessary know-how and will follow activities to enable the complete and effective absorption of European Union funds that concern public administration.

"They are the sectors on which we must place particular emphasis for serving the citizen and for the country's development course. This plan was shaped also on the basis of EU requirements, such as the Lisbon strategy and the rest of the EU's parameters, in accordance with factors regarding the particularities of Greek public administration. The primary target is serving the citizen and transparency in public administration," the minister said.

[07] PM to meet Belgian counterpart in Athens

ATHENS, 15/3/2006 (ANA/MPA)

At 9:30 on Wednesday, the premier is scheduled to meet foreign minister Dora Bakoyannis.

[08] PM holds talks with health minister

ATHENS, 15/3/2006 (ANA/MPA)

Avramopoulos briefed the prime minister on bills remaining to be ratified concerning the health sector. On leaving the Maximos Mansion, he told reporters that his priority at the health ministry is to make the citizen feel close to the state and to treatment services.

The health minister's priorities also include solving all of the ministry's current issues, as well as handling bills regarding medicine and first-stage health care.

[09] Foreign minister briefs main opposition sector chief Papoutsis

ATHENS, 15/3/2006 (ANA/MPA)

The meeting covered the situation in the western Balkans, the broader southeast European area and its EU prospects, as well as Turkey's EU prospects and the Cyprus issue. Bakoyannis also briefed Papoutsis on her recent meeting with Turkish foreign minister Abdullah Gul.

After the meeting Papoutsis stressed that striving for consensus on major strategic areas and promoting foreign policy issues was a "political choice" made by PASOK and its leader George Papandreou.

At the same time, he underlined that consensus required full and substantial briefing of Parliament and the political parties, as well as "good and sincere cooperation".

PASOK's sector chief noted, also, that consensus was not a carte blanche and that the main opposition would continue to exercise criticism where it felt the government was not following the best strategy for national interests.

"By consensus we do not mean compliance over the country's demands, inertia and abandoning the gains made by the Greek foreign policy during the period of PASOK governments," he added.

[10] Gov't sharply attacks Papandreou, PASOK over recent comments

ATHENS, 15/3/2006 (ANA/MPA)

"The howls and insults by PASOK belie helplessness; an inability to express a positive, creative and responsible political message; an inability to express specific and realistic political proposals," alternate government spokesman Evangelos Antonaros said, in reply to earlier statements by the one-time foreign minister.

"As long as Mr. Papandreou invests in past delusions, in irresponsible populism, in bitterness and divisiveness, he's simply admitting that his vision for the future is nothing but an anachronism," the spokesman added during his regular press briefing.

[11] Mitsotakis accuses PASOK leader of 'irresponsibility', PASOK retaliates

ATHENS, 15/3/2006 (ANA/MPA)

Referring to the phone-tapping issue, Mitsotakis said the government's handling was wrong, saying that it should have announced it publicly from the first moment, that is, from March last year and to call the political leaders to brief them. Nevertheless, he added, the ND government was a victim in this affair and that it was determined to find the truth with the means at its disposal.

The former prime minister also referred at length to the issue of the social insurance system, stating that he was in favor of the opening of a dialogue, noting that the age limit for retirement will increase and pensions will decrease if this arises from the real data.

Commenting on Mitsotakis' statements, main opposition Pan-Hellenic Socialist Movement (PASOK) Spokesman Nikos Athanassakis said "we would have been particularly concerned if Mitsotakis said a good word about PASOK and its president."

He also commented on Mitsotakis' positions on economic and social policy.

Athanassakis said "these positions to a certain degree serve the government because Mr. Mitsotakis operates as an alibi for the government's present policy."

[12] ND eurodeputies on Schulz letter

STRASBOURG, 15/3/2006 (ANA/MPA)

The Greek eurodeputies' statement came in response to a letter Schulz sent to various prime ministers, including Greek Prime Minister Costas Karamanlis, urging them not to participate in an upcoming EPP summit in order to avoid showing support for Italian incumbent for the premiership Silvio Berlusconi.

"Every party in the European Parliament respects the activities of all other parties and avoids intervening in their inner workings. Respect on everyone's part is an essential prerequisite for parliamentary democracy. Mr. Schulz has probably not understood this," the ND eurodeputies said.

They acknowledged that Schulz has every right to disagree with whomever he chooses but he does not have the right to intervene.

In closing, they stated: "We can ignore Schulz' intervention. We can't however, forget it, since it shows excessive provacativeness and a lack of parliamentary ethos."

[13] Gov't on phone-tap affair

ATHENS, 15/3/2006 (ANA/MPA)

The spokesman was also asked to comment on remarks apparently made to reporters by Culture Minister George Voulgarakis while en route to Libya with President of the Republic Karolos Papoulias, in which the minister was allegedly dismissive of PASOK president George Papandreou, former New Democracy president Miltiades Evert and public prosecutor Ioannis Diotis, which were run in news reports on Tuesday.

Antonaros said that Voulgarakis had had a "relaxed, off-the-record conversation with journalists that was some media reported partially and in a distorted way," and accused the specific media of acting in an unethical way.

[14] European Parliament ratifies creation of new emergency funding

STRASBOURG, 15/3/2006 (ANA/MPA)

The relevant proposal was made by the Environment Committee with a report introduced by Greek Coalition of the Left party Eurodeputy Dimitris Papadimoulis. The plenum ratified the Papadimoulis report with 606 votes to 27 and 15 abstentions.

The new funding means concerns the 2007-2013 period and constitutes, in a way, the continuation of the EU political protection apparatus created in October 2001 and expiring at the end of 2006.

The Papadimoulis report pointed out that recent natural disasters, such as the tsounami in Asia, the strong tropical cyclone in Luisiana and Mississippi, disastrous floods, the drought and wildfires in Europe rendered the need for more effective and integrated reaction by the EU clear.

[15] Education minister meets presidium of teachers' federation

ATHENS, 15/3/2006 (ANA/MPA)

At the end of the meeting, both sides noted the good climate that prevailed during the discussion.

The education minister stressed that there are certain problems faced by teachers which can be solved but others which cannot be solved for the time being.

The teachers stressed that their main problem was economic, has not been solved.

The teachers, who will take part, along with professors, in Wednesday's nationwide strike declared by the General Confederation of Employees of Greece (GSEE) and the Civil Servants' Supreme Administrative Council (ADEDY), said that they will convene to assess all the answers given by the minister on all matters and later decide whether they will proceed on not in further strike action.

[16] SYN leader meets with Athens Mayor

ATHENS, 15/3/2006 (ANA/MPA)

Issues such as free open spaces, shop hours and garbage were discussed during the meeting, which Alavanos described as 'interesting.'

On his part, Bechrakis assured Alavanos that all the candidates in the upcoming mayoral election will have equal opportunities.

He said that he is in the process of briefing the country's political leaders of all the problems facing Athens and will request their help during the time he holds office.

SYN's candidate for mayor, Alexis Tsipras, was also present at the meeting.

Tsipras noted that Bechrakis is very familiar with Athens' problems, since he has served as municipal councillor for several years as well as president of the municipal council.

[17] EU transport, energy ministers meet in Brussels

BRUSSELS, 15/3/206 (ANA/MPA)

Greece was represented by Deputy Development Minister Anastasios Nerantzis, who stated in Brussels that Greece agrees with the priorities set by the European Commission on energy.

Addressing the Council meeting, Nerantzis said that the present strategy on Europe's energy policy must be based on the balance between the security of energy supply, competitive-ness and sustainable development.

According to the deputy development minister, existing institutional measures linked to the creation of an integrated European market are suitable and adequate, adding that what is lacking today is an "effective plan of coordination between member-states."

[18] Trade unions call nationwide general strike on Wednesday

ATHENS, 15/3/2006 (ANA/MPA)

Among the most visible participants in Wednesday's strike, which technically includes both the public and private sectors, will be public transport workers and hospital staff, with the latter only accepting emergency cases.

Also participating in Wednesday's strike action are journalists, who will not put out news between the hours of 8:00 until 12:00.

GSEE and ADEDY urged workers to attend a rally that will be held at Pedio tou Areos in central Athens at noon, while the Communist Party-affiliated trade union bloc PAME will hold a separate rally at Syntagma Square at 11:00.

Central to the demands made by unions is protection of the institution of collective agreements, while several classes of employees are demanding higher wage increases than those offered by employers. The finance ministry has announced 3 percent pay rises for the public sector, while employers have proposed a 2.8 percent pay rise on basic wages during negotiations for a general collective agreement.

A key source of contention is the refusal of bank managements to enter into negotiations with the bank workers' union OTOE concerning a collective agreement for the sector, which unions view as the harbinger of a general policy of questioning sector agreements.

They also object to the different labor and insurance rights enjoyed by older employees and those now entering the workforce, as well as issues arising through government reforms for state utilities, measures undermining the eight-hour day and reduced pay for overtime work that unions say has substantially decreased the income of workers.

Trade unionists are also concerned by the government's plans to open dialogue on social insurance reform, fearing that fundamental pension rights will be targeted. GSEE president Christos Polyzogopoulos and ADEDY president Spyros Papaspyrou have made it clear that trade unions will not participate in any dialogue on social insurance unless their terms concerning collective agreements and pay rises are met.

Public transport strikes, work stoppages on Wednesday: Commuters will have problems getting to work on Wednesday as a result of strikes and work stoppages in nearly all Athens public transport in support of a 24-hour nationwide strike declared by the General Confederation of Employees of Greece (GSEE). Major delays are also in store for Olympic Airlines passengers due to strikes by the Federation of Civil Aviation Unions OSPA.

Participating in the labor action are workers on the ETHEL buses, who will not be working from the start of their shift until 7:30 and from 22:30 until the end of their shift. ILPAP trolleys will also stay off the roads between 11:00 and 15:00 in the middle of the day.

The tram, Proastiako suburban railway, the overland electric railway and the metro will be closed throughout the day, with their staff on 24-hour strike.

Also on 24-hour strike are staff at the Greek Railways Organization, who will only carry out "social needs" services.

Olympic Airlines has been forced to make major changes to its flight schedule, cutting flights down to one a day per destination for domestic routes and one per country for international routes due to the strike. This had led to the cancellation of 47 flights on Wednesday and two on Tuesday and Thursday, while departure times have been changed for another four.

The airline has expressed regret for the inconvenience to its passengers, stressing that the company is not responsible.

Aegean Airlines flights will be carried out as normal.

SYN leader on strike, social security reform: Coalition of the Left, Movements and Ecology (SYN) President Alekos Alavanos called on all workers to participate in Wednesday's strike organized by trade union GSEE and the civil servants' union ADEDY.

Alavanos said that for SYN, the priority is unemployment, particularly youth unemployment, as well as issues regarding a social state, labor agreements by sector and working hours.

As for social security reform, Alavanos said that the government has no intention of engaging in dialogue, but rather "a monologue of intimidation which aims at extending the time to retirement, smaller pensions and replacing social security with private insurers."

[19] Bank employee unionists call for government initiative for dialogue on collective labor agreement

ATHENS, 15/3/2006 (ANA/MPA)

According to OTOE President Dimitris Tsoukalas, a relevant development might be taking place next week. Speaking after the meeting, Tsoukalas said that "bankers' excesses" regarding labor legislation, such as in the case of unpaid overtime work, have cost the sector at least 5.5 thousand jobs.

Unionists said that there was concern during the discussion with Tsitouridis on the way of implementing legislation on the Unified Bank Employee Insurance Fund, but no specific proposals and commitments were made.

Tsitouridis made no statements on these issues after the meeting.

[20] Pan-Hellenic Seamen's Federation recourses to Council of State

ATHENS, 15/3/2006 (ANA/MPA)

The PNO said that through the civil mobilization of seamen, the international and European legislative framework, and the Greek Constitution as well, was violated.

[21] PM's message for International Consumer Rights Day

ATHENS, 15/3/2006 (ANA/MPA)

"We are constantly intensifying the rate of political intervention to boost consumer consciousness, the continual upgrading of the role of consumers, the operation of a modern and friendly market," he said.

Karamanlis stressed that important steps with visible results had been made in the two years of New Democracy's "new governance".

"Existing institutions were strengthened and new ones created. All public utilities are now drawing up, as demanded by a recent law, a Charter of Obligations Toward Consumers. Inspections to ensure the quality of products and services and avert adulteration, profiteering and fraud are continuing at an undiminished rate," he said.

The premier also pointed to the government's support of consumer organizations and said that legislation was in the wings that would give them greater powers, responsibilities and a role in informing and mobilizing consumers.

[22] Consumer Service Sector receives about 20,000 complaints in three years

ATHENS, 15/3/2006 (ANA/MPA)

According to data provided by EETT on the occasion of Wednesday's World Consumer Day, a considerable increase in complaints received by TEK takes place every year in the region of 130 percent, which shows the contribution of EETT towards solving consumers' problems.

Most issues regarding mobile and fixed-line telephony concerned the questioning of bills, service commitments and the quality and availability of specific services.

[23] Main opposition spokesman on rising prices, re-establishing the state

ATHENS, 15/3/2006 (ANA/MPA)

"Soothing words will neither reduce prices nor make wages grow," he said, referring to the rising cost of living.

He noted that according to recent surveys, only 2.8% of those surveyed believe that prices fell during New Democracy's term in office.

Regarding statements made by Pavlopoulos during the inner cabinet meeting earlier on Tuesday, Athanassakis said that "the minister has announced 10 times that the state will be re-established, which in practice means re-establishing the 'partisan state', while programs such as Information Society remain stagnant."

PASOK deputy slams gov't on high cost of living: Main opposition Pan-Hellenic Socialist Movement (PASOK) deputy Anna Diamantopoulou, speaking during a visit on Tuesday to the Association of Greek Food Industries, said that "the Greek government is obliged to look to the future and this future is Greek businesses and their role in the Balkans."

Diamantopoulou, who headed a PASOK delegation, added that "only two years was enough for the Development Ministry and the ministers to lose the sense of reality and attempt to convince the Greek people that there is no high cost of living."

She said the state is obliged not only to deal with the issue of the protection of the consumer, but also to support Greek businesses.

[24] Tsitouridis says Social Security Foundation will be impressively upgraded

ATHENS, 15/3/2006 (ANA/MPA)

Tsitouridis made the statement during the presentation, along with IKA Governor Ioannis Vartholomeos, of the foundation's housing program for the five year-period 2006-2011.

Tsitouridis underlined that "IKA is building its future without loans" because as assured by Vartholomeos, IKA does not owe any money to the banks.

Tsitouridis said that during the next five years, 47 of the foundation's builings will be erected or completed at the cost of 232 million euros and the result of these projects will be a qualitative upgrading of IKA's services to the more than five million people insured at the foundation.

[25] Real estate market vital to Greek economic growth, report

ATHENS, 15/3/2006 (ANA/MPA)

The report said housing prices more than doubled in the period 1995-2004, recording a 134-percent rise in the last decade, with the highest increases recorded in the period 1999-2002, a development attributed both to a stock market boom and to a significant decline in domestic interest rates. Home prices rose 164 percent in Athens in the period 1999-2002, and by 111 percent in other urban regions around the country.

The annual growth rate in home prices, however, slowed to 2.2 pct in the first nine months of 2004, from 6.2 pct in 2003, with Athens recording a 0.9-pct fall in the corresponding period.

Rental prices showed wide variations, depending on the quality characteristics of each region, with squares, streets, parks, easier access pushing prices higher. The average rental price in Attica ranged from 6 euros per square meter to 16.5 euros per square meter.

IOBE said rising real estate prices did not reflect a similar increase in construction costs, with the latter recording a 4.4 percent rise in the period 1997-2001, leaving home builders with higher profit margins. In 1998 and 1999, the number of available homes increased by 13.4 pct and 23.9 pct, respectively, a development that put a lid on price increases. On the other hand, the number of available homes fell by 37 percent in 2001 pushing prices higher again.

The report said Athens offered an office space reserve of around 3.1 million sq, although a large part of this space was either up to 250 sq or of lower quality inadequate for certain users.

The most expensive retail commerce areas in Athens are Ermou St, Panepistimiou St, Stadiou St and Tsakalov in Kolonaki, with the upscale Kifissia (north) and Glyfada (southeast) districts reporting strong demand.

Leasing prices rose slightly in the period 2001-2002 at around 2,460 euros per sq. meter. IOBE added that the Greek market lacked modern shopping malls, compared with the rest of Western Europe.

[26] Papandreou criticizes what he calls excessive bonuses for OTE executives

ATHENS, 15/3/2006 (ANA/MPA)

Papandreou, who spoke to the coordinating body of PASOK's Parliament group, said the action was indicative of the government's choices, while citing what he called the "fraudulent" fiscal audit, the mobile phone tapping affair, efforts to manipulate the justice system and to abolish collective bargaining agreements.

In an unrelated development, Papandreou announced that a PASOK delegation will tour flood-ravaged Evros prefecture.

[27] Purchasing power of four-member Greek family down 350 euros last year, report

ATHENS, 15/3/2006 (ANA/MPA)

The consumers' organization, in an announcement to the press, stressed that Greek consumers were worried over defective goods, a sign that the domestic market needed more inspections.

Meanwhile, the political leadership of the Development ministry jointly rejected main opposition PASOK party's criticism over increasing prices in domestic markets. Development Minister Dimitris Sioufas said the ministry cared about quality and prices 365 days a year and urged the services, commerce and manufacturing sectors to follow the road to quality and low prices. He underlined the significance of intensifying inspections in the market.

[28] Greek delegation to participate in AGRITECH exhibition in Israel

ATHENS, 15/3/2006 (ANA/MPA)

Israel's latest achievements in the agricultural sector will be presented at the exhbition, including biological cultivations, poultry farming, greenhouse cultivations, dairy produce, biotechnology, irrigation systems, floriculture and the management of water resources.

The AGRITECH exhibition is organized in Israel every three years. The latest exhibition took place with the participation of 263 exhibitors and drew 65,000 visitors from all over the world.

[29] Greek stocks end 1.24 pct lower

ATHENS, 15/3/2006 (ANA/MPA)

Turnover was a moderate 323 million euros. Sector indices suffered losses with the Travel and Leisure (2.80 pct), Media (2.54 pct), Constructions (2.44 pct) and Technology (2.28 pct) recording the biggest percentage losses of the day. The Chemicals (1.46 pct), Food-Beverage (0.91 pct), Personal and Home Products (0.66 pct) and Financial Services (0.53 pct) scored gains.

The Big Cap index fell 1.46 pct, the Mid Cap eased 0.73 pct and the Small Cap index dropped 2.56 pct.

Broadly, decliners led advancers by 219 to 67 with another 35 issues unchanged.

The stocks with the highest turnover were National Bank of Greece, Hellenic Petroleum, Piraeus Bank, Alpha Bank and OPAP.

Selected shares from the FTSE/ASE-20 index

closed in euros as follows:

Derivatives Market Close: DEH top in stock futures trade

Equity Index Futures: