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Athens News Agency: Daily News Bulletin in English, 06-07-06

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

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

July 6, 2006

CONTENTS

  • [01] Prospects for new Cyprus initiative by UN discussed by Bakoyannis, UN's Gambari
  • [02] UN's Gambari, PASOK leader discuss prospect of new Cyprus talks
  • [03] Turkish FM meets U.S. Secretary of State Condoleeza Rice at State Department
  • [04] Parliament president meets Cyprus' Sarris, reiterates Athens support on Cyprus issue
  • [05] Premier to meet with Iraqi FM Zebari on Thursday
  • [06] Bakoyannis to meet Iraqi counterpart on Thursday
  • [07] PM and tourism minister discuss tourism policy, China trip
  • [08] PM meets with PASOK-backed mayoral candidate for Athens
  • [09] PM meets with easyGroup founder
  • [10] PASOK leader has telephone contacts with Cyprus president, Palestinian leader
  • [11] SAE president meets with Papandreou
  • [12] Bakoyannis meets defense minister
  • [13] Greek ambassador holds contacts with Vojvodina officials
  • [14] Papoulias begins official visit to Iceland
  • [15] Greek experts to assist probe into Cyprus military helicopter crash
  • [16] Finance, culture ministers discuss financial state of cultural institutions
  • [17] KKE slams gov't, PASOK over positions regarding Palestinians
  • [18] Yiannis Panagopoulos elected as new GSEE president
  • [19] ND seminar on upcoming local gov't elections
  • [20] PASOK party suspends 18 members
  • [21] Presentation of proposals by Economic and Industrial Research Foundation on 'effective state'
  • [22] Interior, economy ministers address conference on 'effective state'
  • [23] Presentation of gov't proposals on research and technology institutional framework
  • [24] Gov't says no intent to change retirement age
  • [25] Greek economic growth to slowdown in 2006-07, PwC report
  • [26] Greek enterprises' profits down 6.8 pct in 2005, report
  • [27] Basiakos signs contracts for promotion of farm exports
  • [28] Bank's rights issue 1.6 times oversubscribed
  • [29] Bank employee federation calls 24-hour nationwide strike
  • [30] Greek stocks down 1.98 pct on Wednesday
  • [31] Local authorities press for removal of prisons from Korydallos
  • [32] Transport ministry to fund history of railroad project
  • [33] Hadjikyriakos-Ghikas exhibition opens on Syros
  • [34] Discussion held on 'Europe and the Left'
  • [35] Two suspects, including policeman, arrested in scam attempt
  • [36] Police arrest gang suspected of 100-plus burglaries
  • [37] Gambari to hold two separate meetings with Papadopoulos - Talat
  • [38] Cypriot President: too early to make assumptions on cause of crash
  • [39] Geneva professor proposes new method for resolving the Cyprus issue

  • [01] Prospects for new Cyprus initiative by UN discussed by Bakoyannis, UN's Gambari

    ATHENS, 06/07/2006 (ANA)

    Greek Foreign Minister Dora Bakoyannis met here on Wednesday with visiting United Nations UN Under-Secretary-General Ibrahim Gambari, as the latter is in the midst of a three-nation tour -- Greece, Turkey and Cyprus -- in order to gauge prospects for another UN initiative vis-à-vis the long-standing Cyprus problem.

    Gambari told reporters after his 45-minute meeting with Bakoyannis that his mission aims to consider options and ideas for resuming negotiations towards a comprehensive solution to the Cyprus issue.

    He added that conditions at present are not yet at the point of restarting negotiations, as he is now exploring whether there is "political volition and flexibility" to restart talks.

    After Athens, Gambari will travel to the island republic, where he will meet separately with Cyprus President Tassos Papadopoulos and Turkish Cypriot leader Mehmet Ali Talat. A briefing of UN chief Kofi Annan will follow the completion of his tour.

    On her part, Bakoyannis said she outlined Athens' positions to the UN official, noting that the organization's latest initiative - following a recent meeting in Paris between Annan and Papadopoulos - is particularly significant.

    "Efforts aimed at allowing the operation of (bilateral) technical committees must proceed," Bakoyannis said, adding that a specific timetable and agenda of substantive issues (i.e. property, a population census) is necessary.

    Conversely, Bakoyannis said Gambari did not convey to Athens any specific letter by the UN chief, reminding that his mission is "exploratory".

    More importantly, she said the so-called Annan peace plan is not on the table following its rejection by a large majority of Greek Cypriots during a referendum in 2004.

    In echoing standing policy by Athens, she said any new initiative towards a Cyprus solution must be based on three parameters: UN resolutions; efforts to date by successive UN general secretaries and the present "European reality", given that Cyprus is a full member of the European Union.

    Gambari later attended a working lunch hosted by Deputy Foreign Minister Yiannis Valinakis.

    In later comments, a government spokesman merely reiterated that any new initiative for Cyprus must be well-prepared in order to lead to a positive result.

    In an unrelated development, Bakoyannis expressed her condolences over the same-day military accident in Cyprus, where two helicopter pilots were killed when their aircraft crashed while on a training mission.

    [02] UN's Gambari, PASOK leader discuss prospect of new Cyprus talks

    ATHENS, 06/07/2006 (ANA)

    Greece's main opposition PASOK party stressed its willingness to support a new initiative to solve the Cyprus issue, provided there was a clear framework and evident political will for a solution, following a meeting in Athens on Wednesday between United Nations Undersecretary-General Ibrahim Gambari and PASOK leader George Papandreou.

    "We had a long and interesting conversation, and Mr. Papandreou stressed our support for every initiative that might be launched and bring a Cyprus solution closer but with one condition: that there is a clear framework and substantial and clear-cut political will for finding a solution," PASOK Political Council member Christos Papoutsis told reporters.

    Gambari appeared restrained in his statements as he left the meeting with Papandreou, stressing that the UN was currently sounding out if the climate was appropriate for relaunching political negotiations on the Cyprus issue.

    The UN official is currently carrying out a three-country tour taking in Greece, Turkey and Cyprus that seeks to gauge whether the right conditions exist for launching a new UN-sponsored initiative to solve the Cyprus problem.

    Earlier on Wednesday, he was received by Greek Foreign Minister Dora Bakoyannis, who outlined the views of the Greek government.

    Apart from the Cyprus issue, Gambari's talks with Papandreou also covered developments in the Middle East, Iran and Iraq, including the results of a recent visit by Papandreou to the region to promote a Socialist International peace initiative, as well as issues concerning Africa and Europe.

    Clarifying on PASOK's position, Papoutsis underlined that the framework for negotiations must be crystal clear and leave no room for ambiguity or misinterpretation and that it must take into account the United Nations and its past resolutions for Cyprus, as well as European treaties, standards and rules.

    He stressed that the Cyprus Republic was now a member of the European Union and this created a new situation in Europe and had an important influence on developments.

    [03] Turkish FM meets U.S. Secretary of State Condoleeza Rice at State Department

    WASHINGTON, 06/07/2006 (ANA-MPA/T. Ellis)

    Turkish Foreign Minister Abdullah Gul received assurances from U.S. Secretary of State Condoleezza Rice that the United States will intervene with European countries with the purpose of avoiding a rift in relations between Turkey and the European Union in October, during their meeting at the State Department on Wednesday.

    American diplomacy will be activated, seeking a compromise formula that will prevent a rift in Ankara's relations with the EU in autumn due to Turkey's insistence not to open its ports and airports to Cypriot ships and aircraft.

    It was decided in the framework of American activation, that Assistant Deputy Secretary of State for Europe and Eurasia Mathew Bryza will travel next week to Ankara, Athens and Nicosia.

    During the meeting, that included a working luncheon, the two ministers agreed on a "shared vision and structured dialogue to advance a strategic partnership" that covers many issues: from the Kurdish issue to relations with Iraq, the nuclear program of Iran and developments in the Middle East to the energy sector, the accession course of Turkey to the EU and the Cyprus question.

    As regards the latter, Rice and Gul support a mutually acceptable solution under the auspices of the UN and in the framework of the solution they call for an end to the isolation of the Turkish Cypriots.

    It is the first time after the rejection of the Annan plan, that the United States and Turkey do not call for an immediate end to the isolation of the Turkish Cypriots but place this development in the framework of the solution.

    The point in the announcement concerning the "shared vision and structured dialogue" says that "supporting the achievement of a just and lasting, comprehensive and mutually-acceptable settlement of the Cyprus question under the auspices of the UN and in this context ending the isolation of the Turkish Cypriots."

    [04] Parliament president meets Cyprus' Sarris, reiterates Athens support on Cyprus issue

    ATHENS, 06/07/2006 (ANA)

    Cyprus can depend on receiving Greece's full support for its efforts to find a just and viable solution to the Cyprus issue, Greek Parliament President Anna Psarouda-Benaki said on Wednesday during a meeting with visiting Cyprus Finance Minister Michalis Sarris, a Parliament announcement said.

    Psarouda-Benaki also referred to the Cyprus Republic's advanced economic development that allowed it to become a full and equal member of the European Union and stressed that cooperation between Greece and Cyprus was expanding on both a bilateral level and in the framework of the European Union and international organizations.

    She also relayed to Sarris the positive climate toward Cyprus among European parliamentarians, which she ascertained during a recent conference of EU member-states Parliament presidents held in Copenhagen.

    Sarris noted that this was a crucial time for developments in the Cyprus problem and stressed that close cooperation between Greece and Cyprus created favorable conditions for using opportunities that arose, so that there was full implementation of European rules and standards for the benefit of security, stability and development in the general region.

    He also referred to the national aspect of economic progress, the very good cooperation between Greece and Cyprus in the business sector and thanked the Greek Parliament president for the Greek Parliament's unstinting support of Cyprus.

    [05] Premier to meet with Iraqi FM Zebari on Thursday

    ATHENS, 06/07/2006 (ANA)

    Prime Minister Costas Karamanlis will meet with visiting Iraqi Foreign Minister Hoshyar Mahmud Zebari on Thursday morning in Athens while later in the afternoon he will attend the opening ceremony for the 6th World Congress of Pontian Hellenism, alternate government spokesman Evangelos Antonaros told a press briefing on Wednesday.

    [06] Bakoyannis to meet Iraqi counterpart on Thursday

    ATHENS, 06/07/2006 (ANA)

    Foreign Minister Dora Bakoyannis will be meeting her visiting Iraqi counterpart Hoshyar Mahmud Zebari on Thursday, a foreign press release said on Wednesday.

    The talks will be followed by statements to the press.

    [07] PM and tourism minister discuss tourism policy, China trip

    ATHENS, 06/07/2006 (ANA)

    Prime Minister Costas Karamanlis and Tourism Development Minister Fani Palli-Petralia held a meeting to discuss tourism policy on Wednesday, during which Petralia also briefed the premier on the results of her recent trip to China.

    After the meeting, the minister said they had discussed a cooperation agreement for the tourism sector signed with China's government and she stressed the prime minister's lively interest in tourism-related issues.

    Petralia also stressed the need to make favorable impressions on the wave of visitors to Greece, saying that this created an obligation to provide good services while avoiding excessively high prices and price-gouging.

    "Tourism is the strong point of the economy, tourism means modern Greece," Petralia noted in statements to reporters, adding that "we are all working together in this direction".

    [08] PM meets with PASOK-backed mayoral candidate for Athens

    ATHENS, 06/07/2006 (ANA)

    Prime Minister Costas Karamanlis and main opposition PASOK-backed candidate for mayor of Athens Costas Skandalidis met at the Maximos Mansion government headquarters in Athens on Wednesday and discussed local administration issues.

    Skandalidis, a former PASOK minister, told reporters after the meeting that he presented to the prime minister his views on metropolitan local government, metropolitan operation and the role of the municipality of Athens within this framework. He added that the prime minister was skeptical and had his own views. Among the issues discussed was also the future of major projects in the wider Athens area.

    Skandalidis referred to the proposal by ruling New Democracy-backed candidate Nikitas Kaklamanis for measures to make the citizens' life easier when demonstrations take place in the center of Athens. Skandalidis stated that an institutional framework already existed, and stressed that there should be consultation with the interested parties but, in any case, the democratic rights of the people should be protected.

    [09] PM meets with easyGroup founder

    ATHENS, 06/07/2006 (ANA)

    Prime Minister Costas Karamanlis received easyGroup founder, entrepreneur Stelios Haji-Ioannou, at the Maximos Mansion government headquarters on Wednesday morning.

    After the meeting, Haji-Ioannou told reporters that within the next two years his company easyCruise intends to expand its activities to Greece's cruise sector.

    Asked if he is interested in (acquiring) the national carrier Olympic Airlines, he responded that he had not discussed the issue with the prime minister, adding that he was not interested because his easyJet airline and OA are rival companies.

    [10] PASOK leader has telephone contacts with Cyprus president, Palestinian leader

    ATHENS, 06/07/2006 (ANA)

    Main opposition Panhellenic Socialist Movement (PASOK) leader George Papandreou on Wednesday held separate telephone conversations with Cyprus President Tassos Papadopoulos and Palestinian President Mahmoud Abbas.

    Party spokesman Nikos Athanassakis said that Papandreou had contacted Papadopoulos before his meeting with United Nations Undersecretary-General Ibrahim Gambari the same day in Athens, while their talks focused on latest developments in the Cyprus issue.

    The PASOK leader was briefed by the Palestinian president on the "latest crucial developments in the Middle East", Athanassakis added. Papandreou has recently proposed the convening of a four-party conference to deal with the Palestinian issue, during a trip in the Middle East.

    [11] SAE president meets with Papandreou

    ATHENS, 06/07/2006 (ANA)

    Main opposition party PASOK leader George Papandreou and World Council of Hellenes Abroad (SAE) president Andrew Athens met in Athens on Wednesday and discussed ways to support the Greeks of the Diaspora, who in some US regions face certain problems, in order for them to be able to help Greece and Cyprus.

    [12] Bakoyannis meets defense minister

    ATHENS, 06/07/2006 (ANA)

    National Defense Minister Evangelos Maimarakis met on Wednesday evening with Foreign Minister Dora Bakoyannis. The meeting focused on NATO Secretary General Jaap de Hoop Scheffer's visit to Athens on Friday.

    Scheffer is visiting Athens in the framework of preparations for the NATO Summit to be held next November in Latvia.

    [13] Greek ambassador holds contacts with Vojvodina officials

    BELGRADE, 06/07/2006 (ANA)

    Greek Ambassador to Belgrade Christos Panagopoulos reiterated Greek support for Serbia's efforts to approach the European Union and to enter its ranks during a meeting held on Wednesday with the President of the Executive Council and the President of the Parliament of Vojvodina Boyan Paitic and Boyan Kostres respectively, the Tanjug news agency said.

    Panagopoulos referred to the great investments opportunities presented by the region of Vojvodina to Greek investors, stressing that it was the most developed part of Serbia and the country's "bridge" with the EU.

    Kostres said on his part that Vojvodina must examine in the future and in detail the development of the sectors of the petrochemical industry and agricultural production and stressed that the main target of the region's administration is the development of its economic potential.

    [14] Papoulias begins official visit to Iceland

    REYKJAVIK, 06/07/2006 (ANA-MPA/N.Megadoukas)

    President of the Hellenic Republic Karolos Papoulias arrived here late Wednesday afternoon local time for a four-day official to Iceland at the invitation of President Olafur Ragnar Grimsson.

    Papoulias, who is accompanied by Deputy Foreign Minister Thodoros Kasimis, will be meeting Grimsson on Thursday morning. On Friday Papoulias will hold talks with Iceland's Prime Minister Geir H. Haarde while on the same day an agreement on avoiding double taxation will be signed.

    Papoulias returns a visit to Greece by Grimsson in September 2001.

    [15] Greek experts to assist probe into Cyprus military helicopter crash

    NICOSIA, 06/07/2006 (ANA-MPA - A. Viketos)

    Experts sent by the Greek defense ministry are to assist in the investigation into the crash of a Cyprus National Guard helicopter earlier on Wednesday. The decision was made after a telephone call between the defense ministers of Cyprus and Greece, Phoivos Klokaris and Vangelis Meimarakis, respectively.

    Meimarakis also sent a letter of condolence to his Cypriot counterpart over the deaths of the helicopter's two operators.

    The Cyprus defense ministry announced that the two dead men are Russian flight trainer Yuri Oleinik and his Cypriot co-pilot, Andreas Papasozomenos.

    The MI-35 helicopter that fell on Wednesday was one of 12 fighter helicopters of the same type that the National Guard bought from Russia in 2001. They are each equipped with anti-tank missiles, rockets and twin 30-mm machineguns.

    According to a National guard spokesman, these helicopters have carried out numerous training flights, such as the one that ended so tragically on Wednesday, without presenting any problems.

    [16] Finance, culture ministers discuss financial state of cultural institutions

    ATHENS, 06/07/2006 (ANA)

    The financial state of cultural institutions was discussed in a meeting between Finance Minister George Alogoskoufis and Culture Minister George Voulgarakis on Wednesday.

    In particular, they discussed the Greek National Opera issue with the goal to settle its debts and manage spending, and decided to appoint former SEB (Federation of Greek Industries) president Odysseas Kyriakopoulos as its chairman, responsible for finances.

    [17] KKE slams gov't, PASOK over positions regarding Palestinians

    ATHENS, 06/07/2006 (ANA)

    The Communist Party of Greece (KKE) on Wednesday expressed its solidarity with the Palestinian people, as it noted, while referring to the Greek government's position as being "of equal distances" and "imperialistic", while saying main opposition PASOK was following a "provocative silence".

    "...as Israel's armed state violence intensifies, adding new pages of barbarity and horror against the Palestinian people," a KKE announcement added.

    The party also called on the Greek people to resist the government's position of calling on the "attacker and the defender to exercise 'self-control'."

    KKE is organizing a demonstration in central Athens on Thursday to protest Israel's policy.

    Meanwhile, a Coalition of the Left (Synaspismos) delegation met with Palestinian authority ambassador in Greece Samir Abou Ghazaleh on Wednesday, where the party expressed its solidarity to the Palestinian people, while calling Israel's actions unacceptable and in violation of International Law.

    [18] Yiannis Panagopoulos elected as new GSEE president

    ATHENS, 06/07/2006 (ANA)

    Veteran trade unionist Yiannis Panagopoulos on Wednesday took over the helm of Greece's largest trade umbrella group, GSEE, from Christos Polyzogopoulos, as the latter left the union's presidency in order to assume an organizational position in main opposition PASOK party.

    Polyzogopoulos, who on Wednesday detailed his 10-year tenure as GSEE president, called for unity amongst the trade union movement, saying it was the only way to ensure the effectiveness of labor actions.

    He also referred to a strategy aimed at ensuring unions' autonomy from political parties and distinctive roles between political cadres and trade unionists.

    In his statements, Panagopoulos, who hails from the PASOK-affiliated grouping within GSEE, also defended the concept of unions' autonomy.

    [19] ND seminar on upcoming local gov't elections

    ATHENS, 06/07/2006 (ANA)

    Ruling New Democracy party on Wednesday held a one-day seminar on upcoming municipal and prefectural elections, with Interior and Public Administration Minister Prokopis Pavlopoulos as well as ND secretary Lefteris Zagoritis stressing that the primary criteria for the party's election strategy is local communities' needs and not petty political partisanship.

    At the seminar, organized by the Constantine Karamanlis Institute for Democracy, Zagoritis said ND's policy, as enunciated by Prime Minister Costas Karamanlis, emphasizes the interests of local societies, "which are not politically colored for us. We do not sacrifice those societies' interests on the altar of an artificial division."

    On his part, Pavlopoulos sharply attacked PASOK, saying the main opposition party aimed to table a draft law making the new five-year "Theseus" developmental program for local governments more transparent, charging:

    "In other words, those who misappropriated (funds from the program) over seven years are now asking us why we didn't immediately reimburse what they misappropriated. This is hypocrisy," Pavlopoulos said.

    [20] PASOK party suspends 18 members

    ATHENS, 06/07/2006 (ANA)

    The main opposition PASOK party's Charter and Certification Committee convened under the chairmanship of George Anomeritis on Wednesday and decided to suspend the party member capacity of 18 of the party's members who have announced that they will contest a municipal post against the candidates supported by PASOK.

    The suspended members include the brother of Anomeritis, Leonidas, who has announced that he will contest the municipality of Alimos in the Attica prefecture.

    According to an announcement by the Committee, the suspensions will become finalized as soon as those concerned proceed with an official submission of their candidacy, leaving open a window for an understanding to be reached in this way.

    [21] Presentation of proposals by Economic and Industrial Research Foundation on 'effective state'

    ATHENS, 06/07/2006 (ANA)

    Proposals made by the Economic and Industrial Research Foundation (IOBE) were presented during an event held on Wednesday on "an effective state."

    Some of the proposals are the re-establishment of the Supreme Public Services Council as an independent authority, the safeguarding of the autonomy and self-rule of higher education foundations and the establishment of budget transparency and control procedures.

    IOBE President Mihalis Kortesis said in his inaugural address that the demand for an effective state has matured, society accepts it and the political forces are seeking it.

    "Despite all this, the changes that will bring the target closer are taking place at a slow pace or at a slower rate that what is necessitated by conditions. However, society in its entirety needs these changes. For this reason, the contrast between the necessity for reforms and of the hesitant pace with which they are being carried out must be lifted," he said.

    Kortesis added that IOBE's proposals were shaped through a long process of view exchanges as representatives from a wide spectrum of economic life and the academic community, responding to the Foundation's invitation, participated in small work groups that met repeatedly over the past six months.

    [22] Interior, economy ministers address conference on 'effective state'

    ATHENS, 06/07/2006 (ANA)

    Interior, Public Administration and Decentralization Minister Prokopis Pavlopoulos, addressing a conference organized by the Economic and Industrial Research Foundation (IOBE) where its proposals on an "effective state" were presented, said that the government is implementing a strategy of reorganizing the structures and infrastructures of the state.

    He said that public administration has functioned so far bureaucratically, with untrasparency and very often at the expense of the citizen, stressing that its role should be strengthening entrepreneurship, competitiveness and healthy competition.

    Economy and Finance Minister George Alogoskoufis, noting the government's adherence to the policy of reforms for a better and more effective state, referred on his part to reforms promoted by the government, such as tax reform, fiscal restructuring, the new investments law and the new law on the restructuring of public utilities, adding that a great deal remains to be done since it is not easy for mistaken practices and mentalities accumulated over a period of two decades to change in only two years.

    Main opposition PASOK party Deputy Theodoros Pangalos agreed with the largest part of proposals made by IOBE on an effective state, pointing out that these proposals can be implemented today since the Greek society and economy have progressed and the surrounding ideological world has changed.

    [23] Presentation of gov't proposals on research and technology institutional framework

    ATHENS, 06/07/2006 (ANA)

    The government's proposals on the restructuring of the institutional framework on research and technology were presented on Wednesday by Development Minister Dimitris Sioufas, Education Minister Marietta Yiannakou and Deputy Development Minister Yiannis Papathanasiou.

    Sioufas spoke of transparency, evaluation and objectivity in evaluating and funding of research centers, stressing that the proposals on restructuring the institutional framework are aimed at closer cooperation between science and industry, a strong scientific base, a unified national strategy on research and technology and a decrease in the technological gap with the European Union.

    Yiannakou said on her part that the main target is the internationalization of the system and the return of Greek scientists from abroad, while Papathanasiou stressed that the standard of Greek scientists is high. However, the utilization of the results of research is not what had been expected.

    The government's proposals cover three entities: research and technology administration organs, the agencies conducting research and international cooperation.

    The proposals were publicized for public comment to facilitate the preparation of the bill to be tabled in Parliament.

    [24] Gov't says no intent to change retirement age

    ATHENS, 06/07/2006 (ANA)

    Labor and Social Protection Minister Savvas Tsitouridis on Wednesday said that no one eligible for early retirement would lose this right, while stressing that the government's goal is the consolidation of a climate of labor sector security in the country.

    Speaking to reporters after a meeting with Economy and Finance Minister George Alogoskoufis, Tsitouridis said everyone who wished - and is eligible- could enjoy early retirement, while he noted that the government would seek to create the necessary environment to encourage employees to remain at work. Moreover, he said the government does not seek to change the retirement age.

    Alogoskoufis announced two inter-ministerial meetings -over the next two weeks- one to discuss a restructuring program in public sector enterprises and a second to discuss the sale of Emporiki Bank.

    [25] Greek economic growth to slowdown in 2006-07, PwC report

    ATHENS, 06/07/2006 (ANA)

    Greek economic growth is expected to slowdown in the period 2006-2007, after enjoying strong growth rates in the previous year, a report by PricewaterhouseCoopers said on Wednesday.

    The report, however, stressed that Greek economic growth rates would exceed the Eurozone average. PricewaterhouseCoopers said the country's GDP would grow by around 3.25 percent this year and 3.0 percent in 2007 as a result of a stricter fiscal policy, while the Eurozone's average growth rates are projected at 2.0 pct in 2006 and 1.75 pct in 2007.

    PwC's analysts said investments would continue recovering helped by a series of legislative reforms such as a corporate taxation, offering of incentives and rising public spending on infrastructure projects. On the other hand, consumer spending is projected to slow because of rising oil prices, while rising interest rates could also hurt credit quality in the country, the report said.

    The report said that an improving tourism sector would further strengthen the country's services sector, while a continuing decline in competitiveness could raise hurdles in the contribution of external trade in economic growth over the next two years. High oil prices and high wage pay increases would maintain Greek inflation above the EU's average, although the gap is expected to ease slightly, PwC said.

    The country's budget deficit is projected to fall further this year, enabling Greece to meet Stability and Growth Pact's criteria, although PwC's analysts predict that the fiscal deficit would rise again in 2007.

    [26] Greek enterprises' profits down 6.8 pct in 2005, report

    ATHENS, 06/07/2006 (ANA)

    Greek enterprises grew by 1.44 percent in 2005, a rate sharply down compared with a 4.88 pct increase in the period 2003/04 and a 4.6 pct rate in 2002/03, while net profits fell significantly by 6.8 percent per enterprise, a report by Hellastat said on Wednesday.

    Hellastat's annual report on Greek enterprises, based on the results of 21,000 enterprises in the period 2002-2005 using both Greek and International Accounting Standards, said that despite the fact that 2/3 of enterprises reported profits in 2005, only one in three managed to improve its profits compared with 2004, while one in 10 reported losses in 2004, after reporting profits in 2004 and another 12 percent expanded their losses.

    Enterprises in the commerce sector reported the worse performance, with the average growth rate in the period 2002/04 of 5.9 pct falling to -0.17 pct in the period 2004/05 and operating profits falling -5.6 pct (after increases of 6.5 pct in 2004 and 10.3 pct. Electronic and telecoms equipment (-11 pct), office equipment (-6.2 pct), textile wholesale (-5.7 pct) suffered the heaviest losses, while the fuel-lubricants (14 pct), pharmaceuticals-medical equipment (4.8 pct) and alcohol (4.7 pct) reported the best performance in 2005.

    The services sector -- excluding banks and insurance companies -- continued growing, raising its participation in the country's GDP. The sector grew by 3.4 pct in 2004/05, exceeding a 2.7 pct growth rate in 2003/04. The average enterprise in the services' sector raised its profits by 0.76 pct. Other sectors reporting high growth rates are car leasing (8.9 pct), real estate management (12.1 pct), telecoms (6.96 pct), tourist services (6.6 pct), healthcare services (8.3 pct), cleaning and waste management (13.7 pct), hotels (6.2 pct), Cafes-Restaurants (-2.56 pct) and information (-0.28 pct) reported negative growth rates.

    The average manufacturing enterprise grew by 1.2 pct in 2005, with net profits falling an average 6.8 pct, up from 5.6 pct in 2002/04. Textiles, underwear manufacturers, spinning mills, leather and travel accessories reported the worse performance in 2005.

    Commerce enterprises, with an annual turnover of 300,000 to one million euros, reported a 4.7 pct drop in revenues last year, after a -0.8 pct in the 2003/04 period, and an 11 percent fall in net profits. Smaller enterprises reported even worse results in 2005.

    [27] Basiakos signs contracts for promotion of farm exports

    ATHENS, 06/07/2006 (ANA)

    Agriculture Minister Evngelos Basiakos on Wednesday signed three contracts amounting to 14.4 million euros for the promotion of farm products to third countries.

    The promotion programs concern exports to Russia, Ukraine, U.S. Canada and Australia.

    The 14.4 mln euro programs will be covered by national and community funds.

    [28] Bank's rights issue 1.6 times oversubscribed

    ATHENS, 06/07/2006 (ANA)

    National Bank, Greece's largest financial institution, on Wednesday announced the successful completion of its 3-billion-euro rights issue to finance the purchase of Turkey's Finansbank.

    The bank said the rights issue was 1.6 times oversubscribed. Details over the issue will be officially released on Thursday.

    National Bank agreed in April to buy 46 percent in Finansbank's equity capital. The new group to be created after completion of the deal will have total assets of 69 billion euros, it would operate a branch network of 1,059 units -of which 45 percent outside Greece- while consolidated pre-tax profits would reach 1.3 billion euros (based on 2005 results).

    [29] Bank employee federation calls 24-hour nationwide strike

    ATHENS, 06/07/2006 (ANA)

    The Federation of Bank Employee Unions (OTOE) is responding to the bankers' refusal to attend negotiations for the signing of a collective labor agreement in the sector with a 24-hour nationwide strike on Monday.

    Following Wednesday's meeting of the Federation's general council, unionists are speaking of "arbitrariness and intransigence" on the part of bankers as well as of "political inadequacy" on the part of the government which, as they stress, "should have obliged bankers to respect the laws and the constitution."

    OTOE that if until Monday's strike no positive development takes place with bankers attending a brief and effective dialogue on the collective labor agreement, the "struggle will be escalated and will exceed the banking sector through coordination with the General Confederation of Workers of Greece (GSEE) and the other major federations."

    [30] Greek stocks down 1.98 pct on Wednesday

    ATHENS, 06/07/2006 (ANA)

    Greek stocks plunged 1.98 percent in the Athens Stock Exchange on Wednesday as investors took profits after a three-week rally of prices.

    The composite index ended at 3,620.02 points, down 198 percent, with turnover a moderate 257 million euros.

    [31] Local authorities press for removal of prisons from Korydallos

    ATHENS, 06/07/2006 (ANA)

    Justice Minister Anastassios Papaligouras on Wednesday received the heads of Piraeus local authorities seeking the removal of the prisons from the southwestern Athens suburb of Korydallos.

    Among them were Athens-Piraeus Super-prefect Fofi Gennimata, Piraeus Prefect Yiannis Mihas and Korydallos Mayor Stefanos Christou.

    In statements after the meeting, Papaligouras stated that 400 prisoners were being transferred from the Korydallos men's prisons to a new prison in Trikala and other correctional institutions throughout the country within the next few days.

    Another four new prisons will be completed in the coming months, including those of Domokos, Grevena and at the start of 2007 the prisons of Elaiona and Drama, he added.

    According to the minister, the prison population at Korydallos will have been reduced by about half by the start of 2007, so that it would be entirely a remand prison. Its final removal from the now densely populated Korydallos suburb would take place when construction of another five prisons now underway had been completed, Papaligouras said.

    Gennimata said that removal of the prisons would be a positive step and that Korydallos had to stop being an "imprisoned town". She said the local authorities had asked the ministry to hand over part of the prison facilities to the municipality when the prisoners were all removed, in order to create a park.

    [32] Transport ministry to fund history of railroad project

    ATHENS, 06/07/2006 (ANA)

    The Transport and Communications ministry on Wednesday announced that it had secure funding for a project to record the history of Greek railroads,

    This will include funds for the preservation, documentation and promotion of museum and archival material collected by the "Friends of the Railroad" association, that had been included in the Information Society Operational Program, the announcement said.

    The aim of the project, estimated to cost ¬ 600,000, will be to be create digital archives, an electronic library regarding the development of Greek railroads and digital educational materials for young people seeking to learn about so-called "industrial archaeology", which is part of Greece's cultural and industrial heritage.

    [33] Hadjikyriakos-Ghikas exhibition opens on Syros

    SYROS, 06/07/2006 (ANA)

    An exhibition representative of the lifetime work of eminent painter, sculptor, engraver, iconographer, writer and academic Nikos Hadjikyriakos-Ghikas (1906-1994) is being hosted by the Cyclades Gallery at Ermoupolis, on the Aegean island of Syros, on the occasion of the 100th anniversary of the artist's birth.

    The exhibition "Ghikas: Modernism and tradition" will be inaugurated on Saturday, July 8, organized by the municipality of Ermoupolis and art collector Costas Ioannidis within the framework of the Ermoupolia 2006 events in cooperation with the Benaki Museum - Ghikas Gallery.

    The exhibition, which will be open until August 28, features a total of 77 works dating from 1931 to 1992-93, the majority of them coming from the collection of the Benaki Museum in Athens. Among the exhibits are paintings, two tapestries and a carpet, all representative works of the artist dating back to the 30s, 50s and 60s. A study of a ballet theater set and 35 drawings, some of them made for Nikos Kazantzakis' Odyssey (1938-1958), are also being exhibited.

    Nikos Hadjikyriakos-Ghikas' works are featured in the National Gallery in Athens, the Musee d' Art Moderne in Paris, the Tate Gallery in London, the Metropolitan Museum of New York and in private collections worldwide. His aim was to focus on the harmony and purity of Greek art and deconstruct the Greek landscape and intense natural light into simple geometric shapes and interlocking planes.

    [34] Discussion held on 'Europe and the Left'

    ATHENS, 06/07/2006 (ANA)

    The contribution of the Left to the shaping of a strategy on the economy and the political recovery of Europe, as well as methods for the implementation of necessary changes to overcome the crisis in the European Union were examined during an open discussion held at the foreign ministry's auditorium with the participation of French former economy minister and Socialist Party Deputy Dominique Strauss-Kahn (founder of "The Left in Europe" movement), the Belgian president of the "Reformist European Left" Bruno Libaberg and main opposition PASOK party Deputies Yiannos Papantoniou, Evangelos Venizelos and Andreas Loverdos.

    Speaking during the discussion, Strauss-Kahn made the ascertainment that Europe is currently experiencing a crisis due to the rejection of the European constitution and to hasty enlargement and that it is seeking its identity in the conditions of globalization and its repercussions on the economy, society, employment and the role of the national state.

    The French politician also said that the "third path" of Tony Blair did not work, there was "an overall turn to religion and that we are before an energy revolution with the end of the era of oil." He also underlined the need for a "single identity of Europe".

    Bruno Libaberg said on his part that Europe stood before a dilemma, that is, whether it wanted to become a power constituting a "second world pole" or to accept a hegemony of the US.

    [35] Two suspects, including policeman, arrested in scam attempt

    ATHENS, 06/07/2006 (ANA)

    Two local men, including a police officer assigned to Parliament, were arrested on Wednesday and charged with forgery and attempted fraud after a Moldova man accused the pair of trying to con him out of 30,000 euros.

    According to reports, the suspects used forged documents, featuring Parliament's emblem and National Bank of Greece's letterhead, in a bid to get the man to invest the money in a bogus mutual fund.

    The two men, both 34, were arrested following a police sting operation.

    [36] Police arrest gang suspected of 100-plus burglaries

    ATHENS, 06/07/2006 (ANA)

    Police on Wednesday said they had arrested four out of five suspected members of a gang held responsible for more than 100 burglaries and thefts in the past three years. The four suspects in custody were arrested on June 15, while the fifth was still being sought, a police announcement said.

    The loot taken by the gang includes mobile phones, jewellery, cash, electrical appliances and electronic goods, credit cards and other valuable items. They are also believed to have used the stolen cards to withdraw money from banks in the Paleo Faliro area, where they were arrested.

    Their victims were scattered throughout the richer eastern suburbs of Athens, including Glyfada, Iraklio, Paleo Faliro, Neo Psychiko, Alimos, Halandri, Nea Smyrni, Voula, Maroussi, Pefki, Vrilissia, Melissia and Ilioupoli.

    [37] Gambari to hold two separate meetings with Papadopoulos - Talat

    NICOSIA, 06/07/2006 (CNA/ANA-MPA)

    UN Under-Secretary-General for political affairs Imbrahim Gambari will have two separate meetings with each of the leaders of the two communities in Cyprus during his visit to the island from 6-9 July, the UN announced here Wednesday.

    According to the program of his visit, released by the United Nations Peacekeeping Forces in Cyprus (UNFICYP), Gambari arrives on Thursday morning at Larnaca Airport and at 12.00 he will meet President of the Republic Tassos Papadopoulos at the Presidential Palace.

    At 15.00 on the same day, he will meet Turkish Cypriot leader Mehmet Ali Talat at Talat's office in the Turkish occupied north of Cyprus.

    On 7 July at 08.30, Gambari will meet again President Papadopoulos and at 10.00 he will meet leader of the opposition Democratic Rally party Nicos Anastasiades, at the latter's office in Nicosia. At 11.00 Gambari will meet Speaker of the House and AKEL General Secretary Demetris Christofias.

    On Saturday, 8 July at 12.15, Gambari will meet Huseyin Ozgurgun, President of the UBP, at Ozgurgun's offices and at 13.00 he will hold his second meeting with Mehmet Ali Talat at Talat's offices. He departs from Cyprus on Sunday morning, from Larnaca Airport.

    [38] Cypriot President: too early to make assumptions on cause of crash

    NICOSIA, 06/07/2006 (CNA/ANA-MPA)

    Cypriot President Tassos Papadopoulos said here Wednesday it was too early to ascertain the cause of Wednesday's

    crash of a National Guard helicopter, in the Paphos district, on the west.

    In statements after being briefed at the National Guard head-quarters in Nicosia about the incident, President Papadopoulos said "preliminary reports indicated it was difficult to come to conclusions".

    The president expressed "deep sorrow for the tragedy that struck again the National Guard and Cyprus". "I express my sympathy to the relatives of the instructor and the trainee officer", he added.

    President Papadopoulos said that he has conveyed his "sincere condolences to the parents" of the victims and to the Russian embassy for the death of the Russian flight lieutenant who was training the Cypriot airmen.

    The crash occurred during a training exercise of the Russian-designed Mi-35 helicopter Wednesday morning.

    The helicopter crashed near the Paphos-Limassol highway. It was one of two National Guard helicopters which had taken off from the "Andreas Papandreou" military airbase in Paphos.

    [39] Geneva professor proposes new method for resolving the Cyprus issue

    ATHENS, 06/07/2006 (ANA)

    A new approach in the method for resolving the protracted Cyprus problem is needed if one wants to make Cypriots "a subject and not an object" of the process of finding a solution, Professor of Constitutional Law at the University of Geneva, Andreas Auer told an international conference in Delphi on Wednesday.

    The conference, organized by the Delphi European Cultural Centre, focuses on the United Nations role in the 21st century.

    Speaking on behalf of an international eight-member group of experts from seven countries collaborating with the Athens based "Committee for a European Solution to the Cyprus issue", Auer said the proposed process would be realized in three phases: In the first phase, he said, the two communities on the island, Greek and Turkish, should adopt, through separate referenda, what he called "the rules of the game", the process, the manner of electing the members of the Convention, the duration of its works and its decision making process.

    Another two referenda should take place for the endorsement of the results of the convention. The United Nations and the European Union should encourage the process and contribute to the holding of referenda, Auer said.

    Such a method, he added, was the only way for Cypriots to elaborate a solution to their problem and prepare a new constitution. The proposal, Auer underlined, aimed at reversing the process: Instead of having a solution "imposed from above", a solution stemming from the Cypriots themselves would be achieved. In this way, he added, Cypriots themselves will assume the responsibility for the solution.


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