Athens News Agency: Daily News Bulletin in English, 08-02-29

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

CONTENTS

[01] Foreign minister on 2008 economic diplomacy program

[02] Greek minister on Euro-Atlantic prospects of SE Europe, FYROM

[03] Government deplores anti-Greek incidents in Skopje

[04] Deputy foreign minister on acts of provocation from FYROM

[05] UN mediator on FYROM to hold separate meetings in New York on Friday

[06] President meets PASOK MP Theodoros Pangalos

[07] Greek Church issues statement on FYROM name issue

[08] European Parliament president in Greece

[09] PASOK presents proposals for education

[10] Session of Coordinating organ of PASOK youth concluded

[11] Cybercrime squad chief visits prosecutor; slander blogger's identity unknown

[12] Cybercrime draft bill in final stages

[13] EU Commission taking Greece to European Court over health issues, warning over chance game services

[14] Polling stations set up at Russian Embassy in Athens

[15] PM meets tourism minister

[16] Greek Trade National Confederation on measures against high prices

[17] Press conference on 'Viable consumption' campaign

[18] Emporiki Bank returned to profitability in 2007

[19] Hellenic Telecoms sells equity stake in OTENET Cyprus and OTENET Telecoms to CTC for 3.9 mln euros

[20] Petzetakis announces sale of 121.9-mln-euro bond loan

[21] ATEbank Romania announces 15-mln-euro share capital increase plan

[22] Local authority staff demonstration in Athens

[23] Greek stocks plunged 2.51 pct on Thursday

[24] ADEX closing report

[25] Greek bond market closing report

[26] Foreign Exchange Rates - Friday

[27] Three Greeks named as 'Righteous among the Nations'

[28] Alexandria Patriarch Theodoros wrapping up visit to Madagascar

[29] President to receive members of the Panhellenic Union of Rare Illnesses

[30] Kalomoira's "Secret Combination" goes to Belgrade

[31] Earthquake jolts Methoni, Peloponnese

[32] President Christofias: Solution is the new Government's top priority Politics

[01] Foreign minister on 2008 economic diplomacy program

"Outwardness is a survival necessity for the Greek economy," Bakoyannis stressed, pointing out that the period when growth could depend on domestic demand was nearing a close, while funds from European would at some point start to dry up. Greece had to look for new sources of growth "from exports, foreign investments and the globalization of our enterprises," she added.

The minister also underlined that the ministry's economic mission was continuing at the same intense pace, despite the fact that this was a critical period for major issues in Greek foreign policy and the major developments in the surrounding neighbourhood.

Listing the economic diplomacy activities during 2008, she said that there had already been three business delegations abroad, including one to Turkey led by Prime Minister Costas Karamanlis, one to Syria led by Deputy Foreign Minister Petros Doukas and one to Algeria just a few days before led by herself, during her tour of the Maghreb countries.

Referring to the funding sources for economic diplomacy, she said the ministry had for the first time secured funding in its budget for new activities in economic diplomacy during the previous year and was now applying for funds through programs submitted to the 4th Community Support Framework. She said this money would be used to better exploit the 58 Economic and Trade Affairs Bureaus set up by Greece around the world, serving 87 countries.

Among the new economic diplomacy activities undertaken by the ministry is a promotion and networking package for Greek businesses abroad using private/private-sector joint funding, which required the signature of memorandums between the ministry and several important sectors of the economy, including the aluminium sector, fish-farming sector, wines, furs and technical chamber.

Bakoyannis also urged Greek business people to look further afield: "You have succeeded in one of the most difficult areas, the Balkans. Today it is necessary that we repeat this attempt in a much broader geographical area. We must persevere and work together, in an organized and systematic way" she underlined.

She was succeeded by Deputy Foreign Minister Petros Doukas, who outlined Greece's efforts to be part of the "core of nations that will decide the future of the Greek initiative for a union in the Mediterranean" and mentioned specific proposals for funding this 'Union de projects' as it is called.

The event for the "Presentation of the Action Plan for Economic Diplomacy in 2008" was held at the Athens concert hall (Megaron Mousikis) and organized jointly by the foreign ministry, the Hellenic Federation of Enterprises (SEV) and the Panhellenic Association of Exporters.

[02] Greek minister on Euro-Atlantic prospects of SE Europe, FYROM

Athens's policy in favour of the European prospects of the western Balkans was reiterated on Thursday by Greek Deputy Foreign Minister Yiannis Valinakis, who is currently in Sofia to attend a meeting of South Eastern Europe foreign ministers.

"Our positions are known. We support, if we are talking about Kosovo, the achievement of mutually acceptable solutions. Solutions that are found through dialogue and, of course, we will make our decisions at the proper time. On the other hand, with regard to the European prospects of the Balkans, I want to underline that our position is to convert the one-time powder-keg of Europe into a European neighborhood," he told Greek journalists on the sidelines of the meeting.

The talks had focused on regional issues, with emphasis on Kosovo and the Euro-Atlantic prospects of Balkan countries.

At the same time, Valinakis stressed that no country in the region could taken these European prospects for granted and that they demanded respect for the values, democratic principles and the political criteria of the EU.

He particularly stressed this in response to questions concerning the negotiations underway with the Former Yugoslav Republic of Macedonia (FYROM) over the name issue.

"It is therefore clear that in order for there to be progress there must be compliance with these criteria. In order for there to be an invitation to join the Alliance, NATO, there must of course be compliance with the criteria. And the basic criterion is the creation of good neighbor relations and, in the specific case, achieving a mutually acceptable solution to the issue of the name. Without a solution, Skopje cannot proceed and it is certain that there will not be an invitation," the Greek minister said.

He also urged FYROM to "abandon its historically ignorant and confused ideas and appreciate that there was a European future ahead of it," provided that it showed respect for European values, participated in the creation of consensus agreements and European political culture "for the benefit of stability throughout the region".

According to Valinakis, Greece would arrive at the UN-brokered negotiations in New York with "good faith and crystal-clear positions".

"The message to the other side is clear: there must be a mutually acceptable solution in order for there to be an invitation toward that country for NATO and later, the European Union," the Greek minister underlined.

Valinakis underlines complexity of Kosovo issue

Speaking during to his Balkan counterparts during the forum, meanwhile, the minister stressed that the issue of Kosovo was "extremely complex and difficult" and underlined the European aspect of the problem, noting that the developments would inevitably have political repercussions on stability and security throughout Europe.

He reiterated Greece's position in favor of achieving consensual and mutually acceptable solutions based on respect for international law, as a matter of principle. He also repeated Greece's position that the entire region of South Eastern European, including the western Balkans, should become a integral part of Europe and said that incorporating these countries into Europe and Euro-Atlantic structures was a "matter of the highest and vital importance".

Athens wants to see the signature of Stabilization and Association Agreements with all countries in the region as soon as possible, he added, while again noting the need for the countries involved to fulfill certain criteria and conditions.

"Among these is the principle of good neighborly relations and the peaceful resolution of outstanding issues," he said.

"For this reason, we are not ready to agree to the accession to the EU and NATO of any country that does not observe these fundamental principles. The transfer of this unsolved problem to the Alliance or the EU would only create new points of friction, that would seriously interfere with the operation of these organizations. It is also a matter of principle, because we would be sending a mistaken message and creating a negative precedent, making exceptions and discounts concerning the criteria for accession," he explained in his speech.

[03] Government deplores anti-Greek incidents in Skopje

He also denied that Greece was being pressured on this issue by the United States.

"There is no message or request or suggestion. The discussion is taking place in the framework of the United Nations under [UN mediator Mr. Matthew] Nimetz and with the participation of the two negotiators," he said.

Asked to comment on a statement from Washington that the use of a veto did not promote stability, especially in light of the fact that the government has presented stability as its chief criterion in the Balkans, Roussopoulos underlined that the Greek side was not waiving any of its rights under international treaties.

"We want to find a solution on the issue of Skopje - and this is why we are discussing a veto - that is mutually accepted," he stressed.

The incidents referred to by Roussopoulos occurred when a group of young people leaving a rally held in the centre of Skopje over the name issue surrounded a Greek diplomatic mission in the city and committed acts of violence and vandalism. They were repelled by a large force of local police using tear gas and flash-grenades.

According a report by a local television station, the youths also injured a local photojournalist.

[04] Deputy foreign minister on acts of provocation from FYROM

Specifically, an MP for the right-wing Popular Orthodox Rally (LAOS) party Constantine Aivaliotis claimed that FYROM's prime minister had laid a wreath at a FYROM monument bearing a map depicting territories that were part of Greece.

Doukas pointed out that such actions were not in FYROM's own interests and that Greece had succeeded in "including a suggestion toward the neighboring country in all official EU documents that it avoid any sort of action that might have negative repercussions on good neighbor relations".

He also stressed that Athens informed its partners in the European Union and elsewhere about all such incidents.

"You can be sure, therefore, that our European partners are fully informed about these actions and that they are not at all pleased," he added.

[05] UN mediator on FYROM to hold separate meetings in New York on Friday

Special mediator of the UN Secretary General, Matthew Nimetz, on Friday morning (local time) will have a meeting with the Greek representative in the negotiations on the name issue of the Former Yugoslav Republic of Macedonia (FYROM), Ambassador Adamantios Vassilakis.

In the afternoon or in the evening of the same day, Nimetz will meet with FYROM representative Nikola Dimitrov.

The United Nations has not officially announced the location and the exact time of the meetings.

[06] President meets PASOK MP Theodoros Pangalos

Emerging from the meeting, Pangalos referred to the negotiations underway between Greece and the Former Yugoslav Republic of Macedonia (FYROM) to resolve the name dispute and stressed that "Greece has every right not to vote for the accession of new members to NATO and the EU, as other countries have done in the past in various circumstances, even if it is a minority of just one in a decision that is taken unanimously."

At another point, he pointed out that persistently refusal by FYROM's leadership to accept even basic ideas that might lead to an compromise that was acceptable to both sides "shows that they have other things on their mind and, if they have other things on their mind then they are not a factor for stability but a destabilizing factor".

He advised against rallies and demonstrations over the issue, however, saying that these would not help Greece's case but present an image of fanaticism and bigotry.

[07] Greek Church issues statement on FYROM name issue

"In these critical times, which demand unity, unanimity, maturity and wisdom, the Holy Synod expresses its confidence in the state and political leadership of the country, with the conviction that every effort will be made to achieve the best possible result," the statement said.

The announcement, which also noted that these events were a trial for the sensitivities of the Greek people and the "great, God-given blessing of peace", was issued after a meeting of the Holy Synod on Thursday, in which the issue of the name dispute was raised by Archbishop of Athens and All Greece Ieronymos.

The statement additionally appealed for "the preservation of international legality, respect of international treaties, securing of our borders and preserving the Orthodox Christian heritage that is in any case a substantial part of world heritage".

"It is the duty of us all to pray to God to preserve peace and creative cooperation between peoples," it concluded.

[08] European Parliament president in Greece

The meeting will focus on preparing and approving the program of the 4th EMPA plenary session that will take place in Athens at the end of March. Also taking part are the Parliament presidents of Egypt and Tunisia, Ahmed Fathi Sorour and Fouad Mebazaa, respectively.

Poettering and Sioufas are due to meet Prime Minister Costas Karamanlis on Friday in order to brief him on the progress of Euro-Mediterranean cooperation.

[09] PASOK presents proposals for education

During a press conference, she announced that a question tabled by PASOK leader George Papandreou on education, focusing on the quality of state education and its true cost for Greek families, will be discussed in Parliament on Friday during Prime Minister's question time.

Diamantopoulou also slammed the current state of school education in the country, saying that it was the worst it had been for several years due to a shortage of teachers, increase in private spending, problems in kindergartens and technical education, reduction of all-day schools and shortages of books.

[10] Session of Coordinating organ of PASOK youth concluded

As announced by the PASOK leader, he has placed himself head of the course for the reconstruction of the party's youth, which is expected to be concluded with the election of its secretary in late April.

[11] Cybercrime squad chief visits prosecutor; slander blogger's identity unknown

Poulios instructed Sfakianakis to group the cases and put together evidence files that would be sent on to the public prosecutor. After examining the cases, which for the most part concern defamatory publications on websites, the public prosecutor will then decide whether they should be investigated by judicial authorities.

In a related incident, meanwhile, Parliament General Secretary Nikos Stefanou announced that Parliament's IT department had been unable to determine the identity of an Internet user using the Parliamentary network to post a blog containing slanderous remarks.

According to a Parliament announcement, a judicial request to confirm the identity of the specific user had not been rejected by the State Legal Council but was technically impossible with the information given in the court request. It said that the IP address referred to was just one of 25 available addresses provided by Parliament for the 1,500 users using its network to access the Internet and the only way to locate a specific user would be to install and operate electronic services that recorded and identified final users and kept these records on file for future use.

According to Stefanou, keeping such records had been ruled out since Internet access services were first introduced in Parliament in the '90s because of the institutional mission and nature of Parliament and the capacity of the people that used its network (MPs, accredited journalists, parties etc).

The reply was sent by Parliament to the 5th examining magistrate that had requested the information.

[12] Cybercrime draft bill in final stages

A ministry announcement said that the bill would harmonize national legislation on various aspects of crime using information technology - such as hacking or dissemination of child pornography - and would allow police to carry out investigation in "real time" in order to collect necessary evidence before this was lost.

The new legislation would make it easier to follow up crimes carried out over the Internet by making providers prevent the destruction of electronic traces and evidence recorded on the Internet when offences were carried out, the announcement added.

[13] EU Commission taking Greece to European Court over health issues, warning over chance game services

The European Commission decided on Thursday to take Greece to the European Court for failing to harmonize its national legislation with European Union legislation and implementing certain measures regarding the enactment of quality and safety models for the collection, checking and storage of human blood and blood ingredients.

According to an announcement by the Commission, the measures that Greece has not incorporated in its legislation concern "detection requirements and the communicating of serious and undesirable effects (directive 2005/61).

Lastly, Greece is also being required to "enact European Union models and specifications for a quality system at blood donor centres" (directive 2005/62).

In another development, the European Commission is requesting the amendment of the law regarding chance game services in Greece and the Netherlands with a warning sent to the two countries, according to a relevant announcement issued on Thursday.

The announcement stressed that the Commission wants "to put an end to obstacles preventing the free circulation of chance game services" in Greece and the Netherlands, believing that they are not compatible with European legislation on the free circulation of services.

[14] Polling stations set up at Russian Embassy in Athens

Those holding the right to vote are Russian citizens aged 18 or older, provided that they are holders of a Russian passport. The elections will be held between 8:00 and 20:00 on Sunday.

Financial News

[15] PM meets tourism minister

After the meeting, Spiliotopoulos stressed that they had exchanged views on tourism development and the prospects for Greece's tourism product considering the increasingly competitive environment.

He stressed that Greece is focused on diverse and viable tourism combined with a well-targeted promotion campaign.

[16] Greek Trade National Confederation on measures against high prices

Tradespeople stress the need for the implementation of the framework already existing on the smooth functioning of the market. More specifically, ESEE mentioned that the strategic planning for handling pathogenic phenomena, such as high prices, is a priority for the development ministry, which is also responsible for monitoring the implementation of decisions taken.

"Unfortunately, however, on a daily basis, the swelling of illicit trade of all kinds reminds us that the laws exist, but the bodies responsible do not take care to see that they are applied," it added.

[17] Press conference on 'Viable consumption' campaign

According to the Communication Institute's President, Dimitris Mavros, it is an intervention and joint rallying program aimed at mobilizing citizens and sensitizing them on the activities they can do to help the environment.

As he said, the General Consumer Secretariat "embraced" the initiative, while the "Mega" television channel is the sponsor of the effort.

According to Mavros, what is important is an end to the impression that the handling of the problem of the environment is something to which the citizen cannot contribute, because he is weak, and the logic should prevail that every active and aware citizen has the possibility of contributing to the protection of the environment.

[18] Emporiki Bank returned to profitability in 2007

Emporiki Bank said the transformation program, designed and implemented in 2007, was moving faster than original forecasts and has resulted to a reduction of operating spending by 14.2 million euros, redesigning and centralization of bank services' procedures, developing a business center network and reorganizing retail banking, corporate banking and investment banking services.

The bank said its share in the housing credit market rose by 50 basis points, reflecting a 25 percent increase in mortgage loans last year, also consumer loans grew by 25.5 pct, the small- and medium-sized enterprises' portfolio grew by 11 percent, while the bank's total credit expansion was up 15 pct and deposits rose by 8.1 pct.

Emporiki Bank also restarted activities in the Balkans (Albania, Bulgaria and Romania) achieving a 47 pct growth rate in lending activities.

Jean Frederic de Leusse, chairman of Emporiki Bank, deputy chief executive officer and head of international development in Credit Agricole SA, commenting on the results, said Emporiki Bank has successfully integrated the best international procedures, supervision and risk management standards.

Antonis Krontiras, chief executive in Emporiki Bank, said the bank sealed its 100th birthday with its integration in Credit Agricole Group and its return to profitability.

[19] Hellenic Telecoms sells equity stake in OTENET Cyprus and OTENET Telecoms to CTC for 3.9 mln euros

OTE also announced the signing of a collective labor agreement between the management and the workers' union, offering incentives for early retirement to around 200 workers. Workers will be offered financial incentives ranging from 5,000 to 40,000 euros.

[20] Petzetakis announces sale of 121.9-mln-euro bond loan

A company statement said the bond loans signaled a new period for the Group, which could focus on strengthening production activity and boosting its market shares, both in Greece and abroad.

[21] ATEbank Romania announces 15-mln-euro share capital increase plan

[22] Local authority staff demonstration in Athens

According to POE-OTA president Themis Balasopoulos, the workforce in local authorities considers the scheme an attempt to gain access to their fund reserves and assets in order to cover the needs of other problematic pension funds in the short-term.

At the employment ministry, a delegation of protestors met with Employment Minister Fanny Palli-Petralia and presented her with a resolution asking that the proposed merger be scrapped and for the abolition of discriminatory treatment of older and newer employees, abolition of employee contributions to the cost of medicine and improved social insurance fund services.

Afterward, the union said the meeting with the minister had not led to any breakthroughs and announced a new session of the POE-OTA General Council on Friday to decide on further strike action.

[23] Greek stocks plunged 2.51 pct on Thursday

All sectors moved lower with the Banks (4.05 pct), Utilities (3.86 pct), Technology (3.12 pct), Raw Materials (3.04 pct) and Financial Services (2.79 pct) suffering the heaviest percentage losses of the day. The Big Cap index dropped 3.31 pct, the Mid Cap index fell 2.27 pct and the Small Cap index ended 2.23 pct lower.

Mediterra (on its debut in the Alternative Market of the Athens Stock Exchange ended 41.75 pct higher), while ANEK (27.56 pct) and Elviemek (7.79 pct) were top gainers, while Cyprus Bank (11.70 pct), Maxim (10.0 pct) and Mathios (9.91 pct) were top losers.

Broadly, decliners led advancers by 234 to 29 with another 33 issues unchanged.

Sector indices ended as follows:

Insurance: -2.75%

Industrials: -1.33%

Commercial: -1.51%

Construction: -1.26%

Media: -2.37%

Oil & Gas: -1.79%

Personal & Household: -1.89%

Raw Materials: -3.04%

Travel & Leisure: -2.20%

Technology: -3.12%

Telecoms: -2.43%

Banks: -4.05%

Food & Beverages: -0.33%

Health: -1.85%

Utilities: -3.86%

Chemicals: -0.57%

Financial Services: -2.79%

The stocks with the highest turnover were Bank of Cyprus, Piraeus Bank, National Bank and Alpha Bank.

Selected shares from the FTSE/ASE-20 index closed in euros as follows:

Alpha Bank: 20.70

ATEbank: 3.42

Public Power Corp (PPC): 28.24

HBC Coca Cola: 30.00

Hellenic Petroleum: 9.48

National Bank of Greece: 37.20

EFG Eurobank Ergasias: 19.18

Intralot: 12.22

OPAP: 22.50

OTE: 18.70

Titan Cement Company: 29.50

[24] ADEX closing report

Volume in futures contracts on equities totaled 23,944 contracts worth 26.049 million euros, with investment interest focusing on Cyprus Bank's contracts (4,685), followed by Eurobank (933), Marfin Investment Group (3,762), OTE (706), Piraeus Bank (587), Coca-Cola Hellenic Bottling (469), National Bank (885), Alpha Bank (1,798), Intracom (546), Marfin Popular Bank (4,141), Intralot (435) and Postal Savings Bank (1,066).

[25] Greek bond market closing report

In the domestic interbank market, interest rates were mixed. National Bank's overnight rate was 4.05 pct, the two-day rate 4.12 pct, the one-month rate rose to 4.23 percent from 4.20 pct on Wednesday, and the 12-month rate eased to 4.40 pct from 4.41 pct.

[26] Foreign Exchange Rates - Friday

U.S. dollar 1.524

Pound sterling 0.767

Danish kroner 7.512

Swedish kroner 9.443

Japanese yen 161.85

Swiss franc 1.616

Norwegian kroner 7.929

Canadian dollar 1.489

Australian dollar 1.616

General News

[27] Three Greeks named as 'Righteous among the Nations'

Israel's Ambassador to Athens Ali Yahya and the president of the Central Israelite Council of Greece Moysis Constantinis will on March 4 present the awards to three Christian Greeks that saved Jews being persecuted by the Nazis during the occupation of Greece in World War II. The ceremony will be held at the Arts Centre of the Israelite Community of Athens (Vissarionos and Sina Streets) next Tuesday at 18:30.

A decision to award the honorary title is based on meticulous research, including evidence by survivors and other eye witnesses, by a special commission headed by a justice of the Supreme Court of Israel. A person who is recognized as "Righteous Among the Nations" for helping Jews during the Holocaust is awarded a medal bearing his name, a certificate of honor, and the privilege of having his name added to those on the Wall of Honor in the Garden of the Righteous at Yad Vashem in Jerusalem, the Israeli Holocaust Memorial. In addition, the institute also has the right by law to offer holders of the title Israeli nationality.

More than 200 Greeks have been awarded the title by the Yad Vashem, among them the late Archbishop of Athens and All Greece Damaskinos, former commander of the Greek Police Angelos Evert, the late Metropolitan of Zakynthos Chrysostomos, the late Metropolitan of Demetriada Ioakeim, the former mayor of Zakynthos Loukas Karrer as well as many unsung heroes of the second world war. Up until today, Yad Vashem has named a total of 21,748 "Righteous Among the Nations" throughout the world.

The title is considered one of the highest awards that a foreign citizen can receive from the state of Israel.

[28] Alexandria Patriarch Theodoros wrapping up visit to Madagascar

Alexandria and All Africa Patriarch Theodoros II is due to end a visit to the island of Madagascar on Friday, after several days among Madagascar's Orthodox congregation.

During the visit, he inaugurated three churches, a seminary in the island's capital Antanarivo and three schools in various parts of the country. He also announced plans to build hospitals and arts centers for young people.

Among the highlights of his stay was a visit to Madagascar's National Centre for Disaster Management, where he handed over large quantities of clothing and first aid supplies to aid the thousands of victims left in its wake by the destructive cyclone Ivan that recently hit the country.

Theodoros is due to return to his seat in Alexandria on Saturday.

[29] President to receive members of the Panhellenic Union of Rare Illnesses

This move by Papoulias constitutes recognition of the lengthy contribution of volunteers or citizens with limited funds (often relatives of patients) who struggle for the patients with rare illnesses.

The rare illnesses are about 8,000 and threaten life or bring about long-term disability. They affect up to 10% of the population of the European Union. In Greece, there are about one million patients of which 75% are children.

[30] Kalomoira's "Secret Combination" goes to Belgrade

Kalomoira and her song "Secret Combination" written by Poseidonas Yannopoulos and Konstantinos Patzis were the winners in a televised event hosted by the state-run ERT radio and television network on Wednesday evening.

Kalomoira won the ticket to Belgrade based on jury and televote results. The other two contestants were Chrispa with "A chance to love" and Kostas Martakis with "Always and forever".

Among the guest performers were the singers representing Cyprus, Azerbaijan, Slovenia and Romania.

[31] Earthquake jolts Methoni, Peloponnese

According to the National Observatory of Athens Geodynamic Institute and the Aristotle University Geophysics Institute in Thessaloniki, the quake was recorded at 06.54 and its epicenter was located 250 km southwest of Athens.

Cyprus Affairs

[32] President Christofias: Solution is the new Government's top priority

The top priority of the new Government and principal concern and duty of his Presidency is the solution of the Cyprus problem, newly elected Demetris Christofias has said, adding that the solution of the Cyprus problem is the main reason he took the decision to run for the Presidency of the Republic of Cyprus.

In his address at the ceremony for his investiture at the special session of the House of Representatives Thursday, President Christofias also stated that social sensitivity, solidarity and response to human suffering will constitute the strongest characteristics of his presidency, noting that his personal history as well as that of the political movement where he comes from constitute a guarantee for an anthropocentric policy, which will aim at the continuous improvement of quality of life of the citizens.

Addressing the Turkish Cypriot compatriots "at this solemn hour", the new President assured them he is filled and inspired by the best of intentions for reconciliation and peaceful coexistence. "I assure them once again that I will work so that they can enjoy all the rights as equal citizens of a united federal Republic of Cyprus. However, I wish to emphatically reiterate that the restoration of the rights of Turkish Cypriots cannot take place at the expense of the rights of the Greek Cypriot and of our Maronite, Armenian and Latin compatriots. This would doom the solution of the Cyprus problem to failure from the outset", he stressed.

Referring to the international community he said it is important for Cyprus that the United Nations Secretary General, through the exercise of his good offices mission, contributes to the promotion and support of the dialogue between the two sides and it is also important that the five permanent members of the Security Council collectively handle the Cyprus problem on the basis of the decisions and resolutions of the United Nations Organization on Cyprus.

"The starting point to break the deadlock and create the preconditions for a comprehensive negotiation of the Cyprus problem is the implementation of the 8 July agreement, which is embraced and supported by the five permanent members of the Security Council. We declare our readiness for dialogue for the implementation of the agreement and we hope to have a positive response from the Turkish Cypriot side", President Christofias stressed.

As regards the role of the European Union he said he is looking forward to the solidarity of the European partners and he expects that "they will contribute to break the deadlock and to solve the Cyprus problem".

However, he noted that it is not easy to achieve a fair, viable and functional solution to the Cyprus problem, that continuous, persistent and hard work is required and "the key to the solution is in the hands of Ankara. It is Turkey that has to decide to cooperate for a solution".

Stressing the need for unity and collective leadership in the handling of the Cyprus problem, through the upgrading and more effective operation of the National Council, the new President said the political parties will have both a say and a role to play and this opportunity will be realized through their substantial participation in the National Council.

Unity, consensus and dialogue will be the characteristics of his presidency, Christofias said not only in the handling of the Cyprus problem, but also in the way Cyprus will be governed.

"Unity in our country will be ensured through the socio-economic policy of our government, which aims to upgrade the mixed economy model. It is a model which has been applied in Cyprus since the island's independence and which has proven beneficial for our country. We are convinced that this model has not exhausted its possibilities. We believe that it has still a lot to offer, provided that we upgrade it and strengthen it. The model of a mixed economy is based on the cooperation between the initiatives of the private, the public and the cooperative sectors. It is based on the combination of the spirit of entrepreneurship and social cohesion as well as on the existence of a robust economy and high growth rates. Furthermore, it is based on the existence of a socially developed state that supports working people and meets the reasonable needs of the citizens", said Christofias.

The new President said he ran for the Presidency of the Republic inspired by a life-long vision: "The achievement of a just solution to the Cyprus problem and the building of a fairer society. This vision is evident throughout my government programme, which constitutes the beacon and compass of my presidency. I will do my utmost and work very hard to implement my commitments to the people, along with the Council of Ministers that I will appoint. My government programme is a contract of honour with the people which I will fully honour".

"The principal concern and duty of our Presidency is the solution of the Cyprus problem. I have repeatedly stated during the pre-election period and I state it again now: The solution of the Cyprus problem is the main reason I took the decision to run for the Presidency of the Republic of Cyprus. The solution of the Cyprus problem will be the top priority of my government", he said.

Referring to the solution he said it must be based on the United Nations resolutions on Cyprus and be compatible with international and the EU law as well as with international conventions on human rights, adding that the federal, bizonal, bicommunal Republic of Cyprus must have a single sovereignty and international personality and a single citizenship.

He expressed his support to the political equality of the two communities in the framework of a federation, as this is defined in the relevant resolutions of the UN Security Council, but added that the Cyprus problem remains unresolved for thirty four years now despite the many efforts that have been made from time to time. "The problem has not been solved due to Turkey's refusal to accept a solution that would be to the benefit of the people of Cyprus. I firmly believe that the time has come for the problem to be solved in a just, viable and functional way and for the principles of international law to be restored; principles that Turkey violates through the invasion it carried out in 1974 and through the occupation of a large part of our homeland", the President stressed.

He pledged once again that his Government will undertake intense efforts towards various directions in the international community in order to achieve a solution to the Cyprus problem and expressed satisfaction, because in the immediate aftermath of the Presidential Elections, the international community has declared its readiness to contribute to the efforts for a solution to the Cyprus problem.

"From this distinguished rostrum, I reaffirm my commitment towards the people that I will be taking constant initiatives towards the international community as well as towards the Turkish Cypriot community, to achieve a solution that will be based on principles", he added, noting that for the fulfilment of his promise we will take steps in the direction of the Secretary General and the Security Council of the United Nations Organization.

He further welcomed the position of the Security Council, as this is set forth in its latest resolution, which calls upon the two communities to engage constructively in the efforts to find a solution in Cyprus, noting that "we will work vigorously to develop this cooperation and rapprochement with our Turkish Cypriot compatriots, building on the long and historical ties that we have developed with them through the years".

As regards the role of Cyprus, as a member of the European Union, the President said in his address we "will participate actively in developments in Europe, with the goal of realising the vision of a socially sensitive Europe. Cyprus can become a bridge between Europe and the countries in our region and also with countries with which our island maintains relations in the ranks of the non-aligned movement".

"Bearing in mind that the vision of a socially sensitive Europe is founded on unity through acceptance and respect of diversity and not on the levelling and alienation of peoples and cultures we shall utilize our education, cultural values, traditions and sports in order to reinforce our resistance to injurious influences", he added.

The new President stressed that he attaches particular importance to information technology and new technologies and his Government shall work "hand in hand with the citizens and give a new impetus to IT in Cyprus, as information technology is closely associated with progress".

"Research and development and the adoption of new technologies in the industrial sector will give a great impetus to the Cyprus economy. They will increase productivity and improve the competitiveness of Cyprus' industries. These parameters are of decisive importance if the Cypriot economy is to be able to cope with the new conditions created by our participation in the great European family", he said.

In the tourist and other sectors, he noted the need "to speed up the execution of necessary projects and infrastructure and put in place effective mechanisms for the implementation of decisions and projects", adding that cooperation between the Government and local administration will also be further strengthened for the benefit of the citizens.

"Cyprus can do better. That is why I will give emphasis and ensure that the island will be turned into a centre for education, health and provision of services, in line with the commitments I have undertaken in my programme. Our care and concern for all social groups should be taken for granted. However, I would like to make special reference to the youth of Cyprus. The younger generation deserves to have its own dynamic role in the civic life of our country. Through all our policies we have a duty to give opportunities to young people to show their capabilities and ensure their substantial participation in our society. Our vision for a secure Cyprus in the European family of peace and cooperation is the vision of young people", the President said.

President Christofias thanked the citizens who honoured him with their vote, the political forces that supported his candidacy "from the beginning", his party AKEL and the Popular Movement, the United Democrats, the Epalxi Political Movement, the Socialists Initiative, the Free Citizens Initiative and the Support Movements for his candidacy, as well as the Democratic Party, the Social Democrats Movement EDEK and the Cyprus Green Party for their support during the second round of the elections.

He also noted that "Democracy is a people's victory that all of us should protect and preserve at all costs".

He further stressed that he honours and respects his opponent in the Presidential Elections Ioannis Kasoulides and expressed respect and boundless appreciation to President Tassos Papadopoulos, noting that despite the disagreements and different approaches that appeared in the course of their cooperation, "we can certify that during Mr. Tassos Papadopoulos' term in office a great lot has been accomplished".

Christofias also referred to his tenure in the House of Representatives that started in May 2001 and singled out the body's "contribution in the collective and gigantic effort - of the state and of the political leadership, of the organized groups and of the people - to bring about the harmonization of the Republic of Cyprus with the European acquis and to make Cyprus a member state of the European Union, on 1 May 2004".

"My presidency will be a presidency for all Cypriots. The ultimate judge is the common man and the sovereign people before whom I bow", the new President concluded.

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