Athens News Agency: Daily News Bulletin in English, 06-12-06

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

CONTENTS

[01] PM analyses Greek economy at Hellenic-American Chamber of Commerce conference

[02] Cabinet approves stiffer penalties under new Traffic Code

[03] Papandreou addresses PASOK's Parliamentary Council

[04] Russian defense minister in Greece on official visit

[05] FM briefs President on foreign policy issues

[06] EU education ministers discuss common vocational training system

[07] Petralia met with visiting Nashville mayor Bill Purcell

[08] Prosecutor to seek evidence from Germany, Switzerland on Siemens case

[09] Deputy FM Stylianidis and U.S. Ambassador Ries to address 'Development Aid Policy'

[10] KKE leader holds talks with former Coalition party leader Nikos Konstantopoulos

[11] KKE leader Aleka Papariga addresses event at Athens University Law Faculty

[12] Reforms have helped improve Greek banking system, Finmin says

[13] Finmin sees leeway for narrower bank spreads

[14] Gov't defends plans for ports; PASOK calls for immediate halt

[15] Development Minister Dimitris Sioufas outlines initiatives in energy sector

[16] Deputy FM Evripidis Stylianidis concludes visit to Kuwait

[17] Greek officials see fairly swift convergence for Bulgaria, Romania

[18] Cyprus, Athens bourses welcome joint platform

[19] Athens Bourse Close: Stocks decline

[20] UN unanimously adopts 'cultural property return' Resolution tabled by Greece

[21] Athens-Sparta - 8th-5th Century BC exhibition in NY

[22] Accused in MEVGAL blackmail scandal released on bail

[23] Cave discovered in Nestorio, northwest Greece

[24] Olympiakos Piraeus draws 1-1 with Shakhtar Donetsk in Champions League match

[25] FM expresses disappointment over Turkey thwarting Cypriot accession in Open Skies Treaty

[26] Vanhanen says Commission recommendation good foundation for discussion

[27] Deliberations begin Friday at SC on UNFICYP resolution

[28] Cyprus fulfills fundamental convergence criteria for adopting euro

[01] PM analyses Greek economy at Hellenic-American Chamber of Commerce conference

ATHENS, 6/12/2006 (ANA/MPA)

"The reformist strategy is continuing steadfastly, undeviatingly and intensively. It is continuing with the demand and support of society," Karamanlis said.

"We are not yet in the state we want and that the country is entitled to. Continuity and consistency is necessary with the reforms we have started, what is necessary is an increasing rapid pace," he added.

Karamanlis then referred to the paramount reform in economic policy, tax reform, which is now entering its second phase. He explained that the tax-free margin is increasing, tax percentages are decreasing for private persons and social care measures are being enacted, while a considerable simplification of the accounting books and data code is anticipated at the same time so as to curb bureaucratic procedures and reduce the cost they entail.

He further noted that the continuation of privatizations is a basic element in the new economy.

The prime minister criticized previous governments for the state of the economy that they delivered and underlined the results of the reformist strategy scheduled by the New Democracy government.

Karamanlis stressed that the country's growth rate is one of the highest in the eurozone, reaching 4.4 percent in the third quarter of the current year. After a five-year downward trend, tourism is registering a considerable increase in arrivals that amounted to 7 percent last year. Despite the unfavorable impact from international oil prices, inflation dropped to below 3 percent. Direct foreign investments increased almost tenfold during the first eight months compared to last year, exceeding 3.5 billion euros, while total investments have increased by more than 10 percent during the first half of the year.

The prime minister also made special reference to Greek-U.S. economic and trade cooperation, stressing that in 2005 imports from the United States totaled one billion euros, while exports reached 700 million, adding that despite the fact that there is a deficit of 300 million euros in the trade balance the American market provides great opportunities for Greek businesses.

PASOK leader addresses conference: PASOK can guarantee the social pact, reached through social dialogue, which is necessary in order to make the major changes the country needs, main opposition PASOK leader George Papandreou said Monday night, addressing the opening session of a two-day Greek Economy Conference organized by the Hellenic-American Chamber of Commerce at a central Athens hotel.

Papandreou also stressed that he will use all the experience he has accumulated to promote Greece's interests abroad and attract foreign capital to the country.

He launched a fierce criticism on the government policy, which he said results in missed opportunities despite the fact that it came to power at a time when the Greek economy was at its best moment in recent history.

Papandreou also referred to foreign policy issues and particularly EU-Turkey relations, stressing that the likelihood of sanctions on Turkey for not meeting its obligations toward the EU will constitute palpable proof of the fact that efforts to bring Turkey closer to the EU have failed and, at the same time, the effect on Greek-Turkish relations will also be decisive.

He said that the impasse could have been avoided if Greece had continued the serious efforts for the solution of the continental shelf issue at the appropriate time and had exercised serious policy when handling Turkey's EU Customs Union Protocol issue back in 2004 or 2005.

Referring to the economy, the PASOK leader stated that in 2007 or 2008 the EU will decide on lifting the fiscal supervision status imposed on Greece, stressing that again nothing will change if the economic policy model followed today remains the same.

Papandreou also referred to five priorities that have to be backed by bold changes. Namely, providing equal access to quality education for all and incentives to boost entrepreneurship and innovation, investing in the workers' dexterities and vocational training, creating a new social state and making the environment a competitive advantage.

The PASOK leader stated that there are certain necessary preconditions in order to meet the objectives mentioned above.

Decentralization and state reform was one of them, he said, adding that privatizations were not an end in itself but should be part of an overall planning.

He stressed that the creation of a new macro-economic and fiscal framework was necessary and added that he disagreed with the indiscriminate taxation rate cuts on corporate profits.

The PASOK president also stressed that the problem with the taxation system was not high taxation rates but the fact that it lacked credibility.

Papandreou further referred to the need to build a healthier relationship between political and economic forces, between political power and the mass media, and stressing that specific businessmen or mass media should stop enjoying preferential treatment.

[02] Cabinet approves stiffer penalties under new Traffic Code

ATHENS, 6/12/2006 (ANA/MPA)

Liapis said that the aim of the new traffic code was to act as a deterrent in the hope of preventing many of the fatal accidents that put Greece at the top of the league for per capita road accident deaths in the European Union, while at the same time creating a mentality that favored safe driving habits.

To this end, the minister noted that the fines for dangerous driving would increase but speed limits would also be slightly raised.

He pointed out that the last revision of the traffic code was carried out in 1999 and that the government's present proposals were developed by a team of experts and scientists, while they had been unveiled for public debate six months earlier.

Liapis urged MPs to intervene and voice their opinions on this major issue, one which claims hundreds of lives on Greek roadways each year, stressing that he welcomed dialogue on his proposals.

He also described the draft bill prepared by his ministry as a "breakthrough" and expressed hope that there would be cooperation and broader consensus with the opposition.

Responding to reporters' questions about the sharp increase in the amount of the fines, Liapis denied that this was another method of 'milking' the public to boost government coffers.

"That occurs when something is imposed on you against your will. No one obliges anyone to go through a red light, ignore right of way or to illegally traverse a guarded level crossing," Liapis pointed out.

The minister also stressed that wearing a seatbelt was obligatory and that the measure was now being extended to taxis, where passengers in the front seat will be obliged to wear a seatbelt, as well as to passengers on inter-city buses.

Asked whether the government intended to reduce high rates of VAT currently imposed on motorcycle helmets, which are treated as luxury goods for tax purposes, Liapis said that he had raised the issue with European Commissioner for transport Jacques Barrot but had not yet received any reply.

In comments on the draft bill during Tuesday's regular press briefing, government spokesman Theodoros Roussopoulos said that the traffic code was not just a legal text but also a rule for life.

He stressed that the government's goal was to protect human life more efficiently, given that Greece occupied one of the worst positions in the EU in terms of road safety.

The spokesman said the transport ministry, following dialogue with the qualified bodies, had settled on a modern framework of dealing with traffic violations, particularly those that placed human life at risk.

This included the decriminalization of certain minor offences and misdemeanor-type violations, better collection of fines, an upgrade of the point system and a rationalization of fines, he added.

[03] Papandreou addresses PASOK's Parliamentary Council

ATHENS, 6/12/2006 (ANA/MPA)

He stressed that the key to the success of the newly created body would be to present a united front and take dynamic action against the government, while defending and promoting PASOK's positions and decisions.

On the issue of the budget, Papandreou said that PASOK would ensure that it highlighted the under-funding of education, health, the undermining of social security and the government's lack of sensitivity toward families.

Commenting on the government's tax reforms, meanwhile, PASOK's leader said that it was actually a harsh redistribution of income from the many to the wealthy few, which was socially unfair and did not lead to development.

He also stressed that the members of the Parliamentary Council each bore "personal responsibility" for the sector that they had undertaken and the actions they decided to take, urging them to mobilize all citizens and party members on the issues discussed during the meeting.

[04] Russian defense minister in Greece on official visit

ATHENS, 6/12/2006 (ANA/MPA)

On his arrival he met with Greek Foreign Minister Dora Bakoyiannis and was later received by President of the Hellenic Republic Karolos Papoulias, while a meeting with Prime Minister Costas Karamanlis is scheduled for Wednesday morning.

Papoulias greeted the visiting Russian official with particular warmth, underlining the long ties of friendship between Greece and Russia.

"I am aware of this and want to contribute to developing them even further," Ivanov replied.

The Greek president underlined the close cooperation between Greece and Russia in handling international affairs and issues concerning their immediate neighborhood, as well as matters of mutual interest in the Mediterranean and the Balkans, while Ivanov pointed to the two countries cooperation in the Black Sea region.

Papoulias also commented on relations between Russia and the European Union, describing Russia as a major European power.

"I do not think that any European can think that there is a future for the EU without Russia. And I think that you also have a particular regard for developing ties with the EU," he added.

Russian DM Sergei Ivanov visits Archbishop of Athens and All Greece Christodoulos: Russian Vice President and Defense Minister Sergei Ivanov visited Archbishop of Athens and All Greece Christodoulos at noon on Tuesday.

"We feel joy because we are offering you hospitality not as a stranger but as a brother. The Church of Greece maintains close relations with the Church of Russia and the personality of Patriarch Alexiy is respected and loved. We are counting on these relations because we are aiming at the benefit of our Orthodox peoples," Archbishop Christodoulos said and thanked Ivanov for his second visit to the Church of Greece.

Ivanov underlined the historic bonds existing between the Orthodox peoples which, as he said, facilitate communication and cooperation between them. He also noted the crucial and decisive role played by the Orthodox faith in the modern world for the prevalence of peace and the significance of the Orthodox Church for the Russian people, the state and the armed forces of his country.

The Russian defense minister conveyed a letter to Archbishop Christodoulos from the Patriarch of Moscow Alexiy in which he stresses that "you are contributing considerably to the strengthening of friendship and cooperation between our Churches, countries and peoples."

[05] FM briefs President on foreign policy issues

ATHENS, 6/12/2006 (ANA/MPA)

Speaking to reporters after the meeting, Bakoyannis said that the main topic of discussion had been the decisions to be taken by the European Union, either at foreign ministers' level or by the EU Summit on 14-15 December, on Turkey's EU accession prospects.

She said they further discussed the situation in the Middle East on which, according to Bakoyannis, the President expressed particular concern.

Asked to comment on a main opposition PASOK party statement that a prospective crisis in EU-Turkey affairs would also affect Greek-Turkish relations, the foreign minister said that the EU-Turkey issues naturally also influenced bilateral relations.

However, she added, the EU needed to maintain a uniform stance, to send a clear message to Turkey, while at the same time preserving the European lever of pressure on Turkey.

"It is not easy to have consensus within the European Union, but we will strive for it," she said.

[06] EU education ministers discuss common vocational training system

HELSINKI, 6/12/2006 (ANA-MPA)

Commenting on the results of the meeting, Yiannakou noted that creating a single system for vocational training in Europe would mean activating all the interested parties in such a way that vocational education and training became an integral part of each country's education system.

The EU ministers agreed to focus their policies in this area on issues concerning the quality of knowledge and skills provided, so as to make the system more attractive to those seeking to acquire qualifications for the job market.

They also agreed to work on developing common tools to lead to a unified vocational training and education area in Europe.

[07] Petralia met with visiting Nashville mayor Bill Purcell

ATHENS, 6/12/2006 (ANA/MPA)

Following the meeting, Petralia stated that joint actions will be undertaken to boost tourist flow between Greece and Nashville, stressing that this city of the American south is the Athens of the United States, referring to the full-scale replica of the Parthenon built in the city. An estimated 10 million tourists visit Nashville each year.

The Nashville mayor also referred to the joint actions aimed at boosting tourism and expressed his admiration for the Greek culture.

[08] Prosecutor to seek evidence from Germany, Switzerland on Siemens case

ATHENS, 6/12/2006 (ANA/MPA)

[09] Deputy FM Stylianidis and U.S. Ambassador Ries to address 'Development Aid Policy'

ATHENS, 6/12/2006 (ANA/MPA)

The event will take place at the Foreign Ministry's "Yiannos Kranidiotis" Auditurium, 1 Academias Street on Friday at 10:30-12:00 noon.

[10] KKE leader holds talks with former Coalition party leader Nikos Konstantopoulos

ATHENS, 6/12/2006 (ANA/MPA)

Papariga said that the position of KKE is, apart from the effort to achieve rules concerning ethics and the effort to utilize constitutional revision, that what is important is the development of social criticism.

Konstantopoulos said on his part that "the political life of the country cannot and must not become a silent viewer of certain programs that want to manipulate political developments, disorientate public opinion, erode the political system and, at the same time, exercise demagoguery on the institutions' existing problems of weakness or inadequacy."

[11] KKE leader Aleka Papariga addresses event at Athens University Law Faculty

ATHENS, 6/12/2006 (ANA/MPA)

Papariga said that the aim of KKE is to help strengthen developments in the popular movement. Referring to teachers' mobilization, she said that it is important since it brought attention to the issue of education, also expressing indignation over developments taking place in society.

In parallel, she added, it highlighted a known problem, the state of crisis existing in the sector and in the trade union movement in general, while accusing the main opposition PASOK party of capitalizing on the teachers' struggles before the elections.

[12] Reforms have helped improve Greek banking system, Finmin says

ATHENS, 6/12/2006 (ANA/MPA)

According to the minister, banking was a healthy, productive sector and banks were introducing innovative services. Noting increasing competition within the sector that benefited businesses and households, he said this progress was largely due to the sector's heightened competitiveness.

He attributed this to structural changes and reforms, a series of privatizations and the restructuring of the Agricultural Bank of Greece (ATE). He also pledge to continue reforms with the further privatization of the Post Offices Savings Fund and ATE, while pointing to the government's support of National Bank of Greece (NBG) in its expansion to Turkey, which he described as a historic event.

The minister also referred to the marked progress of the Greek economy, with the improvement of fiscal indicators, falling unemployment, rising exports and increasing interest displayed by foreign investors.

He pledged to continue the government's reform program without wavering, noting that the first cycle of reforms was coming to a close at the end of the government's four-year term and that New Democracy would seek the electorate's mandate to embark on a new cycle of reforms in the next four years.

[13] Finmin sees leeway for narrower bank spreads

ATHENS, 6/12/2006 (ANA/MPA)

Banks often still showed high operating costs due to problems of the past, reflected in rate margins, the minister replied to a reporter's question on the sidelines of a forum in Athens arranged by The Economist magazine.

Cenbank seeks reform of banking regulation

Central bank governor Nikos Garganas said on Tuesday that he wanted to see reform of banking regulation.

"There are cases in which banks abuse their power. That is why we must be able to intervene through a suitable statutory framework," Garganas told a banking forum in Athens arranged by the The Economist business magazine.

Under the current regime, regulation of the sector is carried out by mainly by the Bank of Greece, with the development ministry handling competition and market operation.

Garganas also noted that the domestic banking system was stable with a low exposure to credit and market risk; and capital adequacy was satisfactory.

Furthermore, the market had also grown in strength from a recent wave of mergers and acquisitions.

However, risk was involved in investing in southeastern Europe and Garganas reported that he was seeking tighter regulatory controls in the region.

He welcomed the contribution of Greek banks to the transition of southeast European countries to free market economies, and a resulting shift towards the European Union.

Greek banks employ 15,000 people in 1,000 outlets in Bulgaria, Romania, the Former Yugoslav Republic of Macedonia, Serbia, Albania and Turkey, Garganas added.

[14] Gov't defends plans for ports; PASOK calls for immediate halt

ATHENS, 6/12/2006 (ANA/MPA)

Government spokesman Theodoros Roussopoulos also denied rumors that the prime minister's faith in Merchant Marine Minister Manolis Kefaloyiannis had been shaken or that he had refused a meeting requested by the minister.

Regarding the problems created at the port of Piraeus by dockworkers boycotting overtime work in reaction to the government plans, Roussopoulos said the merchant marine minister had taken steps to overcome the problem, talking with the interested parties in open dialogue.

The spokesman also stressed that the government's goal was to improve the efficiency of the country's two largest ports - Piraeus and Thessaloniki - on multiple levels so that they attained the same standards as ports in European countries.

At the same time, he repeated that the labor rights of dockworkers would not be affected by the measures and that a mistaken impression was being created in the media on this issue.

Quoting PASOK leader George Papandreou, however, main opposition party spokesman Petros Efthymiou said that the consequences of the concessions that the government intended to offer would be "unacceptable and disastrous" for the country.

"Our disagreement is absolute," Efthymiou added.

Addressing the first meeting of his party's Parliamentary Council earlier that day, Papandreou stressed that on issues of major importance, such as this one, responsibility did not lie solely with the merchant marine minister but also the premier.

The government plan calls for the privatization of several port services through 30-year concessions that it intends to put up for tender. The move has angered the dockworkers union, which feels that the labor rights of its members are threatened and has responded with a 'go-slow' that has seriously disrupted the flow of cargo through the ports.

PASOK has slammed the proposal as untransparent and says the government bears great responsibility for the clash that has diverted shipping traffic to Greece's neighbors and competitors, while noting that the concessions are for the most profitable activities of the two ports, from which they earned 70 percent of their revenue.

[15] Development Minister Dimitris Sioufas outlines initiatives in energy sector

ATHENS, 6/12/2006 (ANA/MPA)

Sioufas said that a new energy policy is being applied over the past two-and-a-half years aimed at safe energy supply with the best possible prices, the utilization of renewable energy sources and biofuel, the deregulation of the electricity and natural gas markets and the strengthening of the country's international connections in the sectors of electricity, oil and natural gas.

The development minister further said that the construction of the Greek-Turkish natural gas pipeline will be completed soon, whose operation will begin at the end of the spring of 2007.

In addition, the tripartite agreement for the implementation of the Burgas-Alexandroupoli oil pipeline is being promoted, an agreement was signed with the Italian government for the construction of the undersea Greek-Italian natural gas pipeline, a memorandum of cooperation was signed with Egypt in the natural gas transportation sector and electricity connections are being promoted with neighboring countries (FYROM, Bulgaria, Turkey, Italy, etc).

[16] Deputy FM Evripidis Stylianidis concludes visit to Kuwait

KUWAIT, 6/12/2006 (ANA-MPA)

The aims of the Greek mission, that included the Arab-Hellenic Chamber of Commerce and 14 businesses, was to widen fields of cooperation with the purpose of promoting exports, creating joint ventures and attracting investments to Greece.

The two sides expressed their joint desire for further strengthening economic relations, that lag far behind excellent political relations, and shared their concern over the unstable situation prevailing in the region and made special reference to Iraq, Iran, Lebanon and the Palestinian issue.

Calling on Kuwaiti officials to make investments, Stylianidis said "we have a firm and modern economy that can minimize business risk and maximize benefit."

[17] Greek officials see fairly swift convergence for Bulgaria, Romania

ATHENS, 6/12/2006 (ANA/MPA)

Commenting on the sidelines of a conference organized in Thessaloniki by ESC and the European Economic and Social Committee, he stressed that true convergence will come in 8 to 10 years and a lot will depend on what the countries themselves will do. For example, if Bulgaria makes progress in the information society it will move much faster, he added.

On the problem of corruption in the Balkans, he pointed out that serious efforts are being made to combat the phenomenon but there is still a lot that needs to be done.

In certain cases, anti-corruption legislation in Bulgaria and Romania is better than relevant legislation in Scandinavian states but the problem is in the implementation of the law, stressed Transparency International officer Rune Rasmussen, adding that Bulgaria and Romania have made big progress in terms of legislation.

According to Rasmussen, western Balkan states made some progress in combating corruption and the EU does a lot to help them control it. Referring to Greece, he stated that its record is not very good as proven by the fact that it occupies the 15th place among the EU member states.

[18] Cyprus, Athens bourses welcome joint platform

ATHENS, 6/12/2006 (ANA/MPA)

In a visit to Athens, Cleanthous held talks with his counterpart, Spyros Kapralos, who said the platform was a success.

The platform comprises common technological infrastructure (trading, clearing/settlement and registry systems) and a compatible legal and regulatory framework between the two exchanges.

[19] Athens Bourse Close: Stocks decline

ATHENS, 6/12/2006 (ANA/MPA)

The FTSE/ASE-20 index for high capitalization shares ended 0.84% down; the FTSE/ASE-40 for medium cap stocks 0.35% lower; and the FTSE/ASE-80 for small cap shares finished 0.32% down.

Of stocks traded, declines led advances at 138 to 105 with 62 remaining unchanged.

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