Athens News Agency: Daily News Bulletin in English, 06-10-05

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

CONTENTS

[01] PM reiterates determination to carry on with reforms

[02] PASOK leader attacks PM over teachers' strike

[03] Communist party tables question on education, slams PM's address

[04] Minority issues important for Turkey's EU progress, Rehn says

[05] KKE leader Aleka Papariga tours Nikea

[06] First cache of NH90 helicopters to enter service in next few months

[07] Turkish warplanes violate Greek national air space

[08] Armenian DM supports peaceful solution for Nagorno Karabakh problem

[09] SEB chief: Greek state's 'cartel' the biggest obstacle for economy, society

[10] Barrot spokesman: Commission awaits implementation of decision for OA

[11] Greek energy sector in a transitional phase, report

[12] Greece could attract another 5 mln tourists from cruises, industry source says

[13] Finance minister addresses conference on brand products

[14] Russian markets to open for Greek wines, minister says

[15] Hellenic Bank plans network expansion in Greece

[16] N. Greece industries' report on research, tech legislation

[17] Group representing disabled people requests tax breaks, lower VAT

[18] Athens Bourse Close: Stocks rise

[19] New Modern Art Museum in Athens

[20] PM inaugurates 'Aristotelis Onassis' exhibition

[21] Greek Radio and Television Corporation general director holds contacts in U.S.

[22] Goethe Institute events in Thessaloniki

[23] Group of Somali illegals arrested on Samos

[24] Man arrested for transporting illegal immigrants in truck

[25] House President: No trade-offs with Turkey's EU obligations

[26] Irish President to pay official visit to Cyprus

[01] PM reiterates determination to carry on with reforms

ATHENS, 5/10/2006 (ANA/MPA)

At the same time, Karamanlis stressed the party's political profile, saying that ND was the party that, with its choices, strengthened the unity and unanimity of the Greeks. "We are a party with timeless principles and values that determine our course and will continue to do so for many decades. We are the leading political force in the Greek society. And all these entail responsibility, and obligations.

They entail demands from all of us, from all the members of the government, from the entire parliamentary group, from all who assume posts of political responsibility," Karamanlis said, warning that "deviations are not allowed in any instance or at any level".

"I am making myself clear, and I am absolute on this," he added.

"No government wants to be disagreeable, especially to a sector such as the teachers, who are linked to the future of our children," the prime minister said, adding however that "governments are judged on their decisions", and stressing that he would not give benefits that the country could not endure and which would lead the economy to new impasses.

"The road of responsibility has no detours, it is straightforward, and we are following it with consistency," the premier said.

He stressed that changes needed to be made in the field of institutions of higher education in order to make them competitive, and for implementation of that which was in effect in other countries. "We want credible degrees that ensure work, we want an environment of security and confidence for the youth," he added.

Karamanlis noted that an extensive dialogue was taking place in the relevant parliamentary committee, adding that the government was open to new proposals and thoughts because it was not characterized by obstinacy, obsession, or a sense of infallibility.

Those who reject the changes, who refuse the dialogue, also reject the democratic procedure, Karamanlis said, adding that those who demand dialogue from a zero basis where asking for "nothing to being, for changes not to be made".

"But the necessity for changes is something that we do not negotiate," he continued.

Turning to the October 15 municipal and prefectural elections, he said the party's choices were known and binding for all, and distancing from these choices was incomprehensible. The goal was the interest and progress of the local societies, continuation of the developmental process in every prefecture and each and every city, thus actively putting aside the notion of "one or another Greece".

Referring extensively to the issue of corruption, the prime minister said that "we proved that we are in a constant and all-out clash with corruption, the regime of tolerance that has ended definitively". Wherever corruption networks existed, they would be broken out, he said, warning that "no attitude will be tolerated that complies with self-serving interests...no discounts will be made for anyone, regardless of who he is or where he comes from". He also outlined the steps the government has taken and was continuing to take, which he said rendered the cost of corruption unbearable for the culprits, and cited such steps as the charting of land usage, the revision of the rules government procurements in the public sector, the simplification of the procedures for the founding and licensing of enterprises, the reinforcement and institutional shielding of the Competition Commission, the upgrading of the audits on the 'source of wealth' statements of public administration officials, and the constitutional reform with the government's proposals aimed at increasing transparency.

The changes and reforms will continue, Karamanlis stressed, adding that the draft 2007 budget tabled in parliament earlier this week proved that the government was following the structural changes with consistency, continuity and efficiency, and made specific reference to the completion of the taxation reform with a reduction of taxation on natural entities, the revision of the developmental law, the continuation of privatizations and capitalizations, and the search for a strategic partner in the Hellenic Telecommunications Organization (OTE).

The premier further mentioned the plan for the restructure and merger or abolition of redundant public services, the policy for strengthening the social insurance system, changes to the health system, and the policy on combating the black economy, tax evasion, and contribution-evasion.

Karamanlis said that ND was functioning as a 'force of reform of the modern social center'. "We rejected the road of cheap populism, empty argument, and we will not take part in practices that divide the society," he warned.

Earlier in his address, marking the 32nd anniversary of the party's founding, Karamanlis said that "we honor October 4, 1974, we honor the party's founder Constantine Karamanlis, the leader who, under adverse conditions, led the country from dictatorship to the strongest democracy, who realized the vision for accession into the European Union". He also made references to his predecessors at the ND helm: George Rallis, Evangelos Averof, Constantine Mitsotakis, and Miltiades Evert.

"We honor all the historic cadres of the party who are no longer with us, but who left us a legacy of principles and values, dignity, consistency, and ethos. We also honor all the citizens who, for years have supported our political struggles. We honor and have faith in all the Greek women and men," Karamanlis concluded.

[02] PASOK leader attacks PM over teachers' strike

ATHENS, 5/10/2006 (ANA/MPA)

Speaking after a meeting of PASOK Parliamentary Group coordinators and the primary school teachers' union, Papandreou said Karamanlis was responsible for ensuring that schools reopened in such a way that teachers did not feel defeated by the outcome.

PASOK's leader called for dialogue "with common values, common goals and relations of respect and trust" to resolve the problems.

According to Papandreou, the prime minister had swung from a pre-electoral slide into populism to a path of intransigency and autocracy while in power, and from high-flung rhetoric about equality to systematically supporting injustice and favoritism for party cronies and the powerful after the elections.

For New Democracy, the economy had unlimited leeway for its own and the powerful few but none at all for working people, he added.

The teachers' indignation was justified and was a result of their having been led on by the government, while the premier was refusing to meet them, Papandreou said.

During his address to the PASOK parliamentary coordinators, the main opposition leader criticized the government's performance on a broad range of issue, from foreign policy to economics, accusing it of mismanagement and apathy.

[03] Communist party tables question on education, slams PM's address

ATHENS, 5/10/2006 (ANA/MPA)

According to the question, which is signed by all KKE MPs and party leader Aleka Papariga, the strike's extended duration has highlighted not only the teachers' justified demands but also the deeper problems in education.

KKE accuses the two main parties, ruling New Democracy and main opposition PASOK, of following identical policies that have downgraded teachers and led to the privatization of education. The party demands substantial pay rises for teachers in accordance with their demands and the incorporation of the various benefits into their basic pay.

A separate KKE announcement, meanwhile, targets the speech made by Prime Minister Costas Karamanlis to New Democracy MPs:

"The prime minister's claim that the government supposedly supports the social alliance with workers for the continuation of reactionary changes must be answered: the indignation of the broad popular masses, the displeasure with the policies of ND and PASOK, must be translated into votes against the anti-working-class policy. Otherwise, ND and PASOK will use the votes in their favor to pass even tougher measures," the party said.

[04] Minority issues important for Turkey's EU progress, Rehn says

ANKARA, 5/10/2006 (ANA/MPA)

The Commissioner also noted delays in reforms required by the EU, as well as problems with the implementation of the reforms already carried out, and referred once more to Turkey's obligation to open its ports and airports to Cyprus-flagged ships and airplanes under the Ankara Protocol.

"Turkey has carried out bold reforms but problems are being observed in certain areas of their implementation. In the last year, the process has delayed," Rehn said, emphasizing particularly the "very negative developments in the area of freedom of expression".

The Commissioner highlighted EU concerns over article 301 in the Turkish penal code which refers to 'insulting Turkishness', pointing out that there had been 69 court cases based on this article in the past year and that this restricted freedom of expression.

Unless progress on this was made, this would have a negative impact on the EU progress report for Turkey, he stressed.

Asked what would happen if Turkey refused to do open its ports and airports to Cyprus traffic before the end of the year, given that the Turkish government has refused to back down unless the isolation of Turkish-Cypriots is first lifted, Rehn urged reporters "not to dwell on the worst outcomes" and pointed to current efforts by the Finnish presidency of the EU to overcome the impasse.

"We are making efforts around the issue of direct trade, as well as on creating the right conditions for talks [on the Cyprus issue] to be resumed," he added.

Regarding the Finnish presidency's initiative for the Ankara Protocol, Rehn repeated that neither side has so far rejected the plan outright or leaked it to the press.

[05] KKE leader Aleka Papariga tours Nikea

ATHENS, 5/10/2006 (ANA/MPA)

"The failed educational system in general appears even more clearly at night schools, where the children of poor working classes come, children that are obliged to work, children with special social and personal problems," she said.

Papariga added that the situation at night schools is unacceptable, since sensitivity towards the children of families facing serious problems is not taken into consideration even in a fundamental manner.

Lastly, the KKE leader stressed that her party is determined to support the struggles of working people, while priority will be placed on working class children.

[06] First cache of NH90 helicopters to enter service in next few months

ATHENS, 5/10/2006 (ANA/MPA)

Greece has ordered 20 such helicopters with an option to buy another 14. The contract, valued at 657 million euros for the 20 aircraft, was signed by the previous Simitis government on Aug. 29, 2003.

Sixteen of the 20 helicopters are described as "tactical transports" and will be included in the Hellenic Army's fleet, while the other four will be modified for use by airborne special forces. According to a press release issued by the manufacturer, all of the helicopters can also be easily modified for use as "medevac" units.

An off-set agreement includes the creation of a manufacturing unit for portions of the helicopter at the state-run Hellenic Aerospace Industry (HAI) facilities in Tanagra, northern Attica prefecture.

The first helicopter destined for delivery to Greece made its first test flight in July 2005.

[07] Turkish warplanes violate Greek national air space

ATHENS, 5/10/2006 (ANA/MPA)

In all cases, the 33 Turkish aircraft were recognized and intercepted by Greek air force jets. Ten of the Turkish planes were armed.

The Turkish aeronautical exercise codenamed Sevik Pens is currently taking place.

[08] Armenian DM supports peaceful solution for Nagorno Karabakh problem

ATHENS, 5/10/2006 (ANA/MPA)

Speaking during a press conference at the Armenian embassy in Athens, the Armenian defense minister said he favors relations of good neighborliness with all countries in the region, since they benefit all the peoples in the region, as well as stability and peace.

The minister also expressed certainty that Armenia's participation in the Defendory International exhibition taking place in Athens will be effective and thanked the Greek defense minister both for his acceptance of an invitation to visit Armenia and our country's support for Armenia's efforts to modernize its armed forces and join Euro-Atlantic structures.

[09] SEB chief: Greek state's 'cartel' the biggest obstacle for economy, society

ATHENS, 5/10/2006 (ANA/MPA)

SEB president Dimitris Daskalopoulos, who previously headed the Delta Group Holdings (today's Vivartia), one of SE Europe's largest dairy products manufacturers, charged that the Greek state itself and its affiliated public sector comprise the primary "pathogenesis" afflicting the economy and Greek society.

"The state-supported economy doesn't answer to anyone, and the costs are paid by the taxpayers; it corrodes competition, increases unemployment and corruption. There's a need for us to pass from the state-supported to the competitive economy," Daskalopoulos stressed.

In answer to a question regarding recently unveiled portions of the 2007 draft budget by the government, the SEB president said the draft budget was in "the right direction ... correct, from a management standpoint, but lacking in terms of reforms."

[10] Barrot spokesman: Commission awaits implementation of decision for OA

BRUSSELS, 5/10/2006 (ANA-MPA)

The spokesman also noted that the Commission is awaiting proof from Greek authorities that the money, upwards of 300 million euros, has been returned to state coffers, whereas legal recourses could reach the European Court's docket if past decisions are not implemented soon.

[11] Greek energy sector in a transitional phase, report

ATHENS, 5/10/2006 (ANA/MPA)

This environment, currently forming, creates the necessary conditions to mobilize private investments towards boost renewable energy sources, the report noted, adding that investments in the industry totaled more than 900 million euros by the end of 2005, rising by an average annual rate of 60 percent over the last three years.

The report noted that revenues by the 230 enterprises included in the report rose rapidly in the last three years. Specifically, the 74 enterprises that have already began commercial activities reported revenues totaling 126.7 million euros with an annual average growth rate of 36 percent in the three-year period, although the majority of enterprises in the industry was loss-making in 2005, since most were currently in the developing process.

The sector's foreign to total capital rate was 30 percent, despite bank borrowing totaling 270 million euros by enterprises.

Hellastat said the medium- and long-term targets of the industry was to free the Greek economy from negative effects of rising oil prices, protecting the environment, reducing polluting energy products, improving the productivity of the production/supply system and better services to consumers.

[12] Greece could attract another 5 mln tourists from cruises, industry source says

ATHENS, 5/10/2006 (ANA/MPA)

Speaking to reporters, Evangelou said the port of Piraeus has all the capabilities of duplicating, in eastern Mediterranean, the role that Barcelona plays in the western Mediterranean, while he underlined that a decisive factor was a climate of stability and security in Greece.

HATTA's head said the Mediterranean was the most rapidly growing sea cruise region in the world, with growth prospects capable of exceeding even the Caribbean, which showed signs of saturation. He also underlined the intention of large sea cruise companies to "anchor" in Greek ports and to begin cruises around the Mediterranean using Greece as a hub.

The sea cruise industry attracts more than 11 million customers each year, with this number steadily growing. Around 3.2 million customers hail from Europe, while the United States remained the largest source of cruise tourists (totaling 9.1 million annually).

Around 14,000 Greek nationals boarded a ship for a sea cruise last year, while a total of 1.2 million cruise passengers made transit passages to Piraeus.

[13] Finance minister addresses conference on brand products

ATHENS, 5/10/2006 (ANA/MPA)

Alogoskoufis also said that the structures of Greek businesses are improving, but have not adjusted themselves adequately to the current overseas consumer needs. He further said that companies do not have considerable capital for research and development, or for their autonomous entry into markets abroad.

The minister pointed out that the government has helped and is helping companies to improve their products, while stressing that the National Exports Council has been upgraded, a pilot program worth six million euros is under way for the promotion of Greek olive oil in the market of the United States and other similar programs will be implemented in other countries.

[14] Russian markets to open for Greek wines, minister says

ATHENS, 5/10/2006 (ANA/MPA)

"The Russian market is opening to Greek wines," he said after a meeting with visiting Russian Agriculture Minister Aleksey Gordeyev in Athens that was also attended by Greek wine makers and officials from the ministries of foreign affairs, economy, development on both sides, as well as representatives of the Hellenic Foreign Trade Board (HEPO).

The meeting was held one day before the arrival of Russian premier Mikhail Fradkov in Athens and sought to assess the results of the work done over the past year, since the visit to Russia by the largest business delegation ever sent by Greece in September 2005, in which 170 Greek businesses were represented.

Greek exports to Russia rose 24 percent in the first half of 2006, officials reported, while tourism from Russia is estimated to have increased 100 percent after the summer, after increasing by 41.8 percent in the first half of 2006. Investments are also increasing rapidly in both Russia and Greece, led by the energy sector and the imminent construction of the Burgas-Alexandroupolis oil pipeline.

As a first step in the bid to break into the Russian wine market, HEPO announced an event to promote Greek medium and high-quality wines in Moscow on November 28-29, with the participation of 20-25 wine-making companies.

Stylianidis expressed satisfaction with the progress made over the past year to Gordeyev, stressing that Greece and Russia were building up "strong economic cooperation", while the Russian minister noted that the two countries had succeeded in "changing the development of their economic relations in a positive direction" and to build up ever increasing trust in each other.

The meeting between Fradkov and Greek Prime Minister Costas Karamanlis on Thursday would confirm the excellent climate in their relations and give a new boost for reaching their targets, Stylianidis added.

The Greek minister also expressed conviction that outstanding problems between Greece and Russia would be led to resolution, such as the agreement in April for Russian overdue debts to Greece that would be finally settled during the Russian premier's visit, or the solution of problems faced by Greek companies based in Russia, among them Karelias, Hellascom and Chipita.

Other issues addressed by Stylianidis were plans initiated at the Black Sea Economic Cooperation (BSEC) organization to construct a ring road dubbed the 'Road of the Argonauts' that will circle the Black Sea, beginning and end in the northern Greek city of Alexandroupolis - a project proposed by Greece and agreed on at a BSEC transport ministers' meeting with Russia in the chair.

He pointed out that such a road would coincide with an electric power ring described by Russian President Vladimir Putin and, in conjunction with the pipeline network, will create a unified and strong Black Sea market that will boost trade and tourism.

[15] Hellenic Bank plans network expansion in Greece

ATHENS, 5/10/2006 (ANA/MPA)

"Hellenic Bank is thoroughly examining every strategic partnership that could ensure the maximizing and the interests of the group," Keravnos said, adding that the bank also carefully designed its presence in existing or emerging markets.

The bank said Greece was the ideal starting point for its entry in the Balkan markets. Keravnos said the bank aimed at raising its pre-tax profits to 56.2 million euros in 2008 from 50.1 mln this year and gradually reducing its expenses/revenues index to 64.7 percent in 2008 from 72.4 pct in 2004.

[16] N. Greece industries' report on research, tech legislation

ATHENS, 5/10/2006 (ANA/MPA)

In a recommendation sent to development ministry's agencies, the Federation said the main weakness of the draft law was the lack of a description of a National Program for Research and Technology and in particular the priorities of the program and the agency to decide on budget and earmarking of funds.

The Federation said research by the Agricultural Development ministry and affiliated organizations should be included in the program and noted that a clear link between the program, the National Plan for Regional Development and the Public Investments Program must be ensured. It also urged for a more fundamental participation of the private sector to a new regulatory framework and the right to appoint distinguished researchers as members of a scientific department of the National Council of Research and Technology.

Northern Greece's industries, in their recommendations, said that all research programs -of basic research- should have a maximum duration of two years, and funding ceiling of 50,000 euros from 10,000 currently.

[17] Group representing disabled people requests tax breaks, lower VAT

ATHENS, 5/10/2006 (ANA/MPA)

Alogoskoufis noted that the government was examining the requests as part of an ongoing tax reform initiative.

[18] Athens Bourse Close: Stocks rise

ATHENS, 5/10/2006 (ANA/MPA)

The FTSE/ASE-20 index for high capitalization shares ended 1.26% up; the FTSE/ASE-40 for medium cap stocks 1.88% higher; and the FTSE/ASE-80 for small cap shares finished 0.58% up.

Of stocks traded, advances led declines at 175 to 76 with 53 remaining unchanged.

Stock Futures: