Athens News Agency: Daily News Bulletin in English, 08-05-29

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

CONTENTS

[01] Cabinet briefed on energy, steps to curb high cost of living

[02] FM briefed by Cyprus Presidential Commissioner

[03] President receives European, Greek Ombudsmen

[04] PASOK again calls for Parliamentary probe into bonds scandal

[05] Papandreou meets head of WWF Hellas

[06] Culture minister meets with SYRIZA leader

[07] Roussopoulos addresses event on Greece's communication policy in SE Europe

[08] President Papoulias, PM Karamanlis send messages to Panmacedonian Union of America

[09] European Economic and Social Committee celebrates 50th anniversary

[10] National Defence General Staff chief visits Ecumenical Patriarch

[11] Greece proposes military cooperation with S. Korea

[12] Deputy FM Doukas holds talks with Egyptian GAFI chairman

[13] Shipping industry a global leader, FinMin says

[14] Parliament rejects proposal for Factfinding Committee on structured bonds

[15] National Bank says net profits up 25 pct in Q1

[16] Intracom Defense Electronics signs 5.5-mln-US dollar contract with Northrop Grumman

[17] L.Papazoglou appointed new chairman in Athens International Airport

[18] Greek stocks end 2.16 pct higher

[19] ADEX closing report

[20] Greek bond market closing report

[21] Foreign Exchange Rates - Thursday

[22] Conference on inter-cultural dialogue opens in Athens

[23] ERT news programmes highly regarded, state broadcaster says

[24] Philippi Festival to open July 4

[25] Author points to Cabernet origins in ancient Greece

[26] European Ombudsman visits Athens Bar Association

[27] Rector suffers concussion after fracas with students

[28] 2011 Special Olympics in Athens

[29] Spokesman: progress necessary before direct talks

[30] Cyprus pleased with EU position on Turkey Politics

[01] Cabinet briefed on energy, steps to curb high cost of living

Speaking to reporters afterwards, Development Minister Christos Folias said he briefed the Inner Cabinet on some 41 steps announced recently by his ministry aimed at curbing the high cost of living, noting that half of those measures have already been implemented, while 10 additional measures would be announced on Thursday.

Folias explained that the package of measures would produce tangible results when all 41 of the mutually supplementary measures entered into effect, adding that con-sumers would definitely see results, while he also denied press reports of problems in his relations with Deputy Minister George Vlachos or with the economy and finance ministry.

He also said the time has come for long-term planning and important decisions on energy policy, stressing that "the present energy model has reached its limits, combined with the rally in international oil prices".

Folias said he outlined the energy strategy council's report to the Inner Cabinet, adding that a long-term national policy on energy needed to be drafted, with a horizon of the coming decades.

He said that every possibility would be utilised, based also on the country's energy links, aimed at a dependable and secure supply of energy to consumers, effective protection of the environment, and support of competition in the energy market.

For that reason, Folias added, the Council's report would be forwarded to the political parties and to the relevant bodies for broad deliberation.

[02] FM briefed by Cyprus Presidential Commissioner

Although the Greek foreign ministry is briefed daily via the diplomatic missions, "we considered that such a meeting would be useful and, indeed, it was very productive," Iacovou said after the meeting.

Questioned on progress to date in the joint Greek and Turkish Cypriot technical committees, Iacovou said that an initial assessment of their work will be made by himself and the Turkish Cypriot leader's chief aide Ozdil Nami, while the two leaders -- Cyprus president Demetris Christofias and Turkish Cypriot leader Mehmet Ali Talat -- will meet again at the end of June to further assess the working groups and the preparation for direct talks.

He said that there has been progress in some of the groups, while in others there has been no progress.

After the meeting with Bakoyannis, who is due in Cyprus on June 12, the Cypriot official took part in a meeting with foreign ministry officials for what a called a "broader and more detailed presentation of various issues".

Later, Bakoyannis met with visiting European Ombudsman Nikiforos Diamandouros.

[03] President receives European, Greek Ombudsmen

Diamadouros informed Papoulias that he was on a tour of the 27 EU member states in order to brief the political leaderships and citizens on the rights emanating from their second citizenship, namely their European citizenship.

He further noted that, with the ratification of the Lisbon Treaty, more rights would arise for the citizens of Europe.

Earlier, the President received the board of directions of the Association of Diplomatic personnel, headed by the association's president Vassilis Karantonis.

[04] PASOK again calls for Parliamentary probe into bonds scandal

Replying to PASOK, Justice Minister Sotiris Hatzigakis said it was incorrect to talk about a scandal when this was not supported by a court decision and argued that a special investigating committee should not be formed before the initial phases of the investigation by justice had been completed, so as not to interfere with the confidential nature of judicial proceedings.

The minister also assured MPs that the judicial investigation would soon come to a close, possibly during the summer, and warned PASOK not to insist on its current tactics "in case it found the knife turned on itself".

PASOK spokesman George Papadimitriou, on his part, said the government had left the pension funds "unprotected" and that when the truth finally came out, instead of trying to trace all the bonds, check the terms on which they were issued and assess the damages that the pension funds incurred through their purchase, it had "allowed the minister responsible to try to justify the unjustifiable and become irreparably compromised, resulting in his removal."

Referring to a report on the affair by the head of the independent authority against money-laundering, George Zorbas, he claimed that this would have been very embarassing for the government, which he accused of suppressing the report with the aid of prosecuting authorities so that it was sidelined and neutralised.

The MP rejected arguments that a Parliamentary inquiry would interfere with the course of justice, saying that the object of the two inquiries was quite different and that they would actually complement one another.

"In the case of criminal responsibility, penalties are imposed, whereas in the case of political responsibility the main issues is the political exposure of the one responsible for certain acts and behaviours," he stressed.

[05] Papandreou meets head of WWF Hellas

"Unlike those who consider the environment to be an issue for the elite, we consider that it is a crucial issue for all citizens and even more so for the middle and lower classes, who suffer all the negative repercussions from the degradation of the environment, the cost of living and the lack of quality of life," Papandreou said afterwards.

PASOK's leader said a new environmental policy would unlock huge developmental potential for Greece, which could become a ground-breaker in strategies for green growth provided there were major changes and the necessary political will to carry these out, which PASOK possessed.

Papandreou then thanked WWF for its role in protecting the environment and said that PASOK was open to the dialogue being launched by the international environmental group, saying that this should lead to specific proposals that would be binding for PASOK and any future PASOK government.

Karavelas underlined the need for governments to push the environment higher up the political agenda and to "look at our country's development in a different way," adding that WWF's proposal would be presented to all the political parties and other bodies.

[06] Culture minister meets with SYRIZA leader

They also discussed the culture ministry's special accounts and the Heraklion (Crete) Archaeological Musem, which Liapis promised to visit soon and discuss all the pending matters on the spot.

[07] Roussopoulos addresses event on Greece's communication policy in SE Europe

In his address, Roussopoulos emphasised that Greece clear and standing message acts as a strong force for peace and stability, as well as development and prosperity, in the region. Moreover, he said it was evident that Athens sincerely and substantively backed its neighbours' Euro-Atlantic ambitions.

[08] President Papoulias, PM Karamanlis send messages to Panmacedonian Union of America

In his message, President Papoulias referred to the strength of the unity of Hellenism, stressing that "we all share a common vision for the future of Macedonia, for the future of Greece, but also for the future of the entire Balkans."

On his part, Prime Minister Karamanlis said "the Greek state works systematically for the implementation of the common vision, the strengthening of the presence of Ecumenical Hellenism, but also the safeguarding of the national and cultural identity of Greeks all over the world."

[09] European Economic and Social Committee celebrates 50th anniversary

The European Economic and Social Committee (EESC) celebrated 50 years of continuous presence in European developments on Wednesday with a special session held at the European Parliament's building here.

The session was inaugurated by EESC President Dimitris Dimitriadis and was attended by European Parliament President Hans Gert Petering, European Commission President Jose Manuel Barroso and by other officials that included former European Commission president Jacques Delors.

Dimitriadis said that "the celebration on the 50th anniversary of the founding of the EESC has not only to do with its past, but basically with its future and with the effort we are making to prepare the EEC for the new era that will come after the adoption of the Lisbon Treaty."

He added that the EESC is playing and will continue to play an important role in European affairs and stressed that "the presence of the presidents of the European bodies here is not merely a formality, but they are here to signal the significance of our contribution during these 50 years."

The events regarding the celebration of the EESC's 50th anniversary were concluded with an open discussion on the future of Europe and the intercultural dialogue, while later on Wednesday evening a special volume issued by the EESC on its 50 years of activity was due to be presented.

[10] National Defence General Staff chief visits Ecumenical Patriarch

Greek National Defence General Staff Chief Dimitris Grapsas visited Ecumenical Patriarch Vartholomeos at the Phanar on Wednesday.

"I once again express our joy and satisfaction, not only over the Chief's visit to the seat of the Mother Church, but also for the promotion of relations of good neighbourliness and cooperation between Greece and Turkey," the Patriarch said in welcoming the General Staff chief.

"The general's visit will contribute in the direction of promoting relations for which the Mother Church is always hoping, praying and working," the Patriarch added.

Grapsas said on his part that "it was a special honour and pleasuree for his Reverence to receive us today on the premises of the Ecumenical Patriarchate. I wish to thank him for the special honour he bestowed on us and to request of him to pray for the armed forces."

During his meeting with the Ecumenical Patriarch, the Greek general also referred to efforts being made by Vartholomeos for the protection of the environment.

Financial News

[11] Greece proposes military cooperation with S. Korea

The aim of the visit is to promote bilateral ties in the defence and military sectors, after the progress of bilateral cooperation in shipping and trade.

Plakiotakis presented the Greek proposal during a meeting with his S. Korean Vice-minister for Defense Kim Jong Cheon. Greece is also expecting S. Korea to appoint a military attache in Athens following the appointment of a Greek military attache to Seoul in September 2007.

During his visit, the Greek minister also met with the head of S. Korea's Ministry of Patriots and Veteran Affairs Kim Yang, laid a wreath at a memorial of Greek soldiers fallen in battle, and watched the Tae Kwon Do tournament that forms part of the World Armed Forces Championship taking place in Seoul, where the Greek mission has so far won three medals.

[12] Deputy FM Doukas holds talks with Egyptian GAFI chairman

The meeting confirmed the impetus created in Greek-Egyptian trade relations, also in the wake of the recent business forum held in Athens in the presence of Egyptian President Hosni Mubarak and Doukas's visit to Egypt at the head of a large Greek business delegation.

Ragab showed great interest in attracting Greek businesses to Egypt, particularly in the sectors of renewable energy sources, crops and food processing, energy, transportation and sea transportation in particular.

Cooperation and a relevant analysis was agreed between the two sides on the recent outcome of business activity.

The GAFI chairman also showed interest in facilities anticipated by Law 3427/2005 regarding the establishment of offices by foreign business companies in Greece with a minimum 5 percent tax rate.

[13] Shipping industry a global leader, FinMin says

The Greek shipping industry accounts for 20 pct of cargo shipments worldwide, Alogoskoufis said, adding that foreign exchange inflows from shipping surpassed 4.8 billion euros in the first quarter of 2008, up from 3.7 billion euros last year, for an increase of 32 percent.

The government has set a top priority to attracting shipping companies into the country and noted that the government would do everything in its power to avoid any consequences from Community directives on capital tax.

He underlined that in the framework of an economic reform programme, Greece enjoys better and cheaper telecom-munication services because of increased competition in the sector and that a deal between Deutsche Telekom and Hellenic Telecommunications Organisation (OTE) that will bring better and cheaper telecoms services.

[14] Parliament rejects proposal for Factfinding Committee on structured bonds

The proposal was backed by PASOK's Parliamentary group and the deputies of the Radical Left Coalition (SYRIZA) and the Popular Orthodox Rally (LAOS) party, while it was voted against by the Parliamentary group of the ruling New Democracy party and by its former deputy and current independent Costas Koukodimos.

The deputies of the Communist Party of Greece (KKE) who were present declared themselves "present."

[15] National Bank says net profits up 25 pct in Q1

The bank said return on equity rose by five percentage points to 28 percent and noted that this performance reflected strong growth of banking services both in the domestic and the markets of Turkey and Southeastern Europe.

Net profits from activities in Greece grew 8.0 percent to 255 million euros. Finansbank's contribution to the Group's profits totaled 129 million euros (up 40 percent from the same period in 2007), accounting for 30 percent of total profitability.

Net profits from activities in Southeastern Europe jumped 72 percent to 50 million euros, or 12 percent of total profitability.

National Bank said its net interest margin was 4.31 percent in the first quarter of 2008 from 4.19 pct in the same period last year. The Group's loan portfolio totaled 57.1 billion euros at the end of March 2008, from 45.7 million last year, an increase of 25 percent, while saving deposits totaled 60.5 billion euros, up 13 percent over the same period.

Loan portfolio in the Greek retail banking market totaled 26.6 billion euros, with mortgage loans rising 17 pct to 16.9 billion euros and consumer and credit cards totalling 6.0 billion euros, up 24 percent from last year.

National Bank said loans to small- and medium-sized enterprises totaled 3.7 billion euros in March, up 28 pct from 2007, while loans to large enterprises rose 22 pct.

Saving deposits in Greece totaled 49.3 billion euros, up 11 pct.

[16] Intracom Defense Electronics signs 5.5-mln-US dollar contract with Northrop Grumman

The 12-month contract, worth 5.5 million US dollar, is a continuation of two previous contracts signed with Northrop Grumman.

[17] L.Papazoglou appointed new chairman in Athens International Airport

Mr Papazoglou will continue its duties as secretary general until his replacement was announced.

[18] Greek stocks end 2.16 pct higher

Most sectors moved higher with the Banks (4.06 pct), Telecommunications (3.29 pct) and Healthcare (3.11 pct) scoring the biggest percentage gains of the day, while Utilities (1.97 pct), Insurance (0.40 pct) and Media (0.24 pct) suffered losses.

The FTSE 20 index jumped 2.76 pct, the FTSE 40 index ended 1.67 pct higher and the FTSE 80 index ended 0.28 pct up. Broadly, advancers led decliners by 157 to 78 with another 53 issues unchanged.

Sector indices ended as follows:

Insurance: -0.40%

Industrials: +0.06%

Commercial: +0.29%

Construction: +0.42%

Media: -0.24%

Oil & Gas: +0.45%

Personal & Household: +2.46%

Raw Materials: +1.91%

Travel & Leisure: +0.10%

Technology: +1.32%

Telecoms: +3.29%

Banks: +4.06%

Food & Beverages: +0.44%

Health: +3.11%

Utilities: -1.97%

Chemicals: +1.19%

Financial Services: +0.40%

The stocks with the highest turnover were National Bank, PPC, Alpha Bank, and OPAP.

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

Alpha Bank: 21.12

ATEbank: 2.57

Public Power Corp (PPC): 24.36

HBC Coca Cola: 28.10

Hellenic Petroleum: 10.28

National Bank of Greece: 33.90

EFG Eurobank Ergasias: 18.26

Intralot: 11.50

OPAP: 26.76

OTE: 18.20

Piraeus Bank: 21.12

Bank of Cyprus: 8.54

Marfin Popular Bank: 5.14

[19] ADEX closing report

Volume in futures contracts on the Big Cap index totaled 9,628 contracts worth 102.567 million euros, with 30,548 open positions in the market, while on the Mid Cap index volume was 98 contracts worth 2.358 million euros with 236 open positions.

Volume in futures contracts on equities totaled 11,380 contracts, worth 27.601 million euros, with investment interest focusing on Marfin Popular Bank's contracts (1,822), followed by Hellenic Telecoms (1,725), OPAP (565), National Bank (1,362), Alpha Bank (1,275), Intracom (471) and ATEbank (612).

[20] Greek bond market closing report

In the interbank money markets, interest rates moved higher. The 12-month Euribor rate was 5.05 pct, the six-month rate 4.92 pct, the three-month rate 4.85 pct and the one-month rate 4.57 pct.

[21] Foreign Exchange Rates - Thursday

U.S. dollar 1.578

Pound sterling 0.799

Danish kroner 7.519

Swedish kroner 9.396

Japanese yen 165.38

Swiss franc 1.638

Norwegian kroner 7.928

Canadian dollar 1.570

Australian dollar 1.647

General News

[22] Conference on inter-cultural dialogue opens in Athens

The dialogue is an iniative that aims to meet the present-day challenges which, in an era of many uncertainties, call for closer cooperation among countries, with bridges of communication on common goals, aimed at a better future for the societies, parliament president Dimitris Sioufas said in opening the conference.

He explained that the participation of the Society of the Citizens, the Non-Governmental Organisations (NGOs), and more particularly the youth in the dialogue was fundamental, and consequently proposed to the two foundations that they organise an international meeting of youth representatives im the Euro-Mediterranean zone, hosted by parliament in Athens.

"We must add the young generation's voice, ideas and demands to the inter-cultural dialogue, as the role that the youth can play is very fundamental, in a dialogue that I consider to be a channel of communication founded on understanding and solidarity, which gives strength to and promotes peace and prosperity," Sioufas said.

"We need the inter-cultural dialogue because, in many countries, we fear that which is different and foreign," Hellenic Foundation for Culture president, Prof. George Babiniotis said, explaining that the efforts of the two Foundations focused on spreading the knowledge of the various cultures that the societies must acquire, which he said leads to respect of the other.

The word 'dialogue' means "give and take of ideas, thoughts and meanings", he said, adding that dialogue leads to acquaintance, which in turn leads to respect and discussion, "which means that we all, together, seek the truth".

President of the Anna Lindh Euro-Mediterranean Foundation for dialogue between cultures, Andre Azoulay, said that the participation of the Society of the Citizens in cultural and political affairs was one of the basic areas of action of the Foundation, which was founded in 1975.

Azoulay said that "I try to say that there is no clash of cultures, but rather ignorance and inability to synthesize the present-day facts", adding that the clash of ignorance must be transformed into a different rationale, with knowedge and synthesis, and not the rationale of rift, and explained that the world has need of such kinds of ambitions.

Taking part in the conference are NGOs from Europe, the Balkans and the Mediterranean, for the purpose of discussing the role they can play in advancing the inter-cultural dialogue both in the long-term and the short-term.

[23] ERT news programmes highly regarded, state broadcaster says

Speaking during a press conference on the "News on State Television," Panagopoulos said that his regard was reflected in the high ratings, which were comparable to those for private channels.

The AGB survey showed that the average daily coverage for news broadcasts (with a minimum 10 minutes viewing time) during March, 2008 was 1,119,700 viewers for NET, 248,900 viewers for ET1 and 270,800 viewers for ET3.

For the major nationwide private networks, the equivalent figures were 1,358,400 viewers for Mega, 1,040,700 viewers for Alter, 988,700 viewers for Antenna, 761,300 viewers for Alpha and 722,400 viewers for Star.

The AGB survey showed that these levels of viewer ratings were more or less steady over time, with the state broadcaster news programmes receiving similar ratings in March 2007 and November 2007.

[24] Philippi Festival to open July 4

The program of this year's Festival, which runs throughout the entire summer season (July-September), includes performances of ancient drama and comedy staged by the State Theater of Northern Greece, the National Theater and other municipal theaters, concerts, classical dance and music performances, and performances by orchestras and groups of international repute.

One of the most important festivals in Greece, and the top cultural event of Kavala prefecture, the Philippi Festival was organised for the first time in 1957, and quickly gained popularity.

Highlights of the Festival include a concert by the Camerata-Friends of Music orchestra, featuring violin soloist George Panagiotidis and led by maestro Vladimiros Symeonidis, in a concert dedicated to the 50th anniversary of the European Parliament, while on July 10 the State Theater of Northern Greece will stage a performance of Euripides' "Orestes", directed by Slobodan Unkovski.

The Festival closes on September 1, with a National Theater of Greece performance of a play titled "Oedipus Tyrannus at Colonus", which is based on two of the works comprising Sophocles' Oedipus Trilogy: the ancient dramas 'Oedipus Tyrannus' and 'Oedipus at Colonus', adapted and directed by Roula Pateraki.

[25] Author points to Cabernet origins in ancient Greece

In "Desert Island Wine," wine expert Miles Lambert-Gocs outlines his theory that the balisca wine, which Pliny identified as Greek in the 1st century AD, had a key role in the evolution of grapes in southwest France, including Bordeaux, and is the oldest specifiable source of cabernet.

According to a Wine Appreciation Guild announcement, Pliny wrote that the balisca was already present in Rome's Spanish provinces in his time. "It is likely," says Lambert-Gocs, "that the balisca began crossing over the Pyrenees into southwestern France as early as that, since its quality was already recognized." Pliny paid attention to the balisca and became knowledgeable about it precisely because of its quality, which was also noted by the first-century Roman writer and agriculturist Columella.

By comparing Pliny's information with modern Greek and Albanian descriptions of native grapes, Lambert-Gocs traces the identity of Pliny's balisca and the 'black volitsa' of the northwestern Peloponnese, and the "vlosh" of coastal Albania -- where ancient Greek colonies flourished. Further, key traits of the volitsa (balisca) are seen in Cabernet Sauvignon, as specified and sourced in the addendum report in 'Desert Island Wine,' according to the author.

Lambert-Gocs is a long-time researcher on Greek wine history. His previous books are 'The Wines of Greece' (1990) and 'Greek Salad: A Dionysian Travelogue' (2004).

[26] European Ombudsman visits Athens Bar Association

According to an announcement, during the meeting "there was an exchange of views and discussion while the sides committed themselves to organize at the initiative of the Athens Bar Association an event to brief Athenian lawyers regarding the competencies of the European Ombudsman."

Finally, decision was reached for closer cooperation between the DSA and the European Ombudsman.

Diamantouros also addressed an event on Wednesday evening organised by the Hellenic Foundation for European and Foreign Polcy (ELIAMEP) on the new European Treaty and the citizens' rights to fair administration.

[27] Rector suffers concussion after fracas with students

Doctors said that they had not detected any serious damage but would be keeping him in overnight for observation.

In the meantime, an extraordinary meeting of the Deans' Council of the university's Polytechnic Faculty, convened by Dean Nikos Mousiopoulos, decided to suspend all classes until further notice and condemned the incident as the "apogee of the gradual self-destruction of the Greek state university".

The university's deputy rectors also convened, expressing their concern over developments within the country's universities and criticised the "extreme and cowardly, violent behaviour of the students". They condemned what they described as a forceful violation of university asylum, an attempt to muzzle the Senate and obstruction of democracy and the free movement of ideas.

They also appealed to the government and political parties to "come to an understanding over the national issue of public education, abandoned their double-talk and assist in the return of universities to normal function".

Manthos was rushed to hospital on Wednesday morning after losing consciousness when protesting students forced their way into the hall where a meeting of the university's Senate was underway, disrupting the proceedings.

The Senate was due to discuss the university's four-year academic development program.

A group of about 200 students forced their way into the meeting hall, shouting slogans and demanding that the meeting be discontinued, in protest over the operational plan.

A heated argument ensued between the Senate members and the students, during which Manthos lost consciousness.

Minister slams violence against rector

Education Minister Evripidis Stylianidis also condemned the attack on the rector and the violent incidents that occurred during elections for university rectors, after Wednesday's meeting of the inner cabinet.

Stylianidis described it as an "unacceptable act of violence" against an elected rector and stressed that the reforms to education would continue.

Opposition PASOK

The events at Thessaloniki were also condemned by main opposition PASOK, which said "progressive forces that consider state universities to be a foundation for growth and social cohesion have an obligation to adopt a clear stance and condemn all forms of violence".

"The inflammatory statements of the education minister, the anti-democratic behaviour of some non-academics but also the violent behaviour of minorities, deepen the crisis in universities," a PASOK announcement said.

Special Olympics

[28] 2011 Special Olympics in Athens

Participating in the Games will be 7,500 disabled athletes from 172 countries, 2,500 coaches, 3,000 officials and 25,000 volunteers, while it has been estimated that 40,000 members of the athletes' families will be coming to Greece from every corner of the planet.

Apart from the Games, programmes were presented at the Zappeion Hall on Wednesday that aim at sensitising the public and training young people on issues concerning what is "diversity" and "differentness" is in society's day-to-day activities.

Cyprus Affairs

[29] Spokesman: progress necessary before direct talks

Government Spokesman Stephanos Stephanou has stressed that direct negotiations between the leaders of the Greek Cypriot and the Turkish Cypriot communities cannot begin unless there is sufficient progress in the ongoing discussions between teams of experts from both sides.

"This progress must support direct negotiations, we must have convergence on fundamental issues of the Cyprus problem, otherwise we will not be able to proceed," he said after a cabinet meeting here Wednesday.

"Bearing in mind existing differences and the gap between the two sides on core issues, if we proceed to direct negotiations without convergence and without a solid basis for negotiations, the negotiations will fail and we cannot afford another failure in efforts to find a solution," the spokesman stressed.

The government, Stephanou noted, "focuses its efforts on reaching a positive outcome from discussions at the working groups and the technical committees," the bicommunal teams of experts who discuss all aspects of the Cyprus problem.

Commenting on a statement by the Turkish Foreign Minister about a partnership between two states in Cyprus, Stephanou pointed out that the government rejects the establishment of a new state (virgin-birth) in Cyprus.

"The Greek Cypriot position, as well as UN resolutions, refers to a transition of the Republic of Cyprus to a bi-zonal, bi-communal federation of the Republic of Cyprus, made up of two constituent states and one Republic of Cyprus, with a single sovereignty, citizenship, and international personality," he said.

The spokesman noted that neither statements from the EU nor last week's joint statement by the two community leaders refer to the establishment of a new state in Cyprus, as part and parcel of a solution.

"The joint statement is a step forward", he said, adding that a previous agreement between the two community leaders refers only to a bi-zonal, bi-communal federation, with political equality, as defined by relevant Security Council resolutions.

In their joint statement on May 23 President Demetris Christofias and Turkish Cypriot leader Mehmet Ali Talat reaffirmed their commitment to a "bizonal bicommunal federation with political equality, as defined by relevant Security Council resolutions", and agreed that "this partnership will have a federal government with a single international personality."

Christofias and Talat agreed to meet again in late June to assess the situation as far as discussions at the six working groups and the seven technical committees are concerned.

[30] Cyprus pleased with EU position on Turkey

The government of Cyprus on Wednesday expressed satisfaction with the conclusions of TuesdayÔs EU-Turkey Association Council, in relation to Cyprus.

The government also said that Ankara must act in line with EU decisions and show in practice that it supports the ongoing peace effort, agreed by the leaders of the Greek Cypriot and the Turkish Cypriot communities.

"The EU conclusions note that Turkey has not fulfilled its obligations emanating from the Additional Protocol to the Association Agreement, nor has it made progress towards normalisation of relations with the Republic of Cyprus," a written statement read out by Government Spokesman Stephanos Stephanou said.

The EU, the statement added, calls on Turkey "to stop blocking the accession of Cyprus to international organisations."

It is also noted, Stefanou pointed out, "that the EU expects Turkey to actively support the ongoing process agreed on 21 March 2008 leading to a comprehensive and viable settlement of the Cyprus problem within the UN framework and in line with the principles on which the EU is founded".

"Turkey has to align itself with the EU position, change its stance towards Cyprus and the Cyprus problem and contribute to a solution that reunifies the territory, the people, the institutions and the economy of Cyprus, within the framework of a bizonal, bicommunal federation," Stefanou said.

Finally, Stefanou pointed out that in order to achieve Turkey's compliance with the EU position, the government with firmness, flexibility and respect to the basic principles of the solution will continue its efforts.

Responding to questions, the spokesman said that failure by Turkey to meet its EU commitments would abolish the significance of its accession course.

"We always remind our EU partners of Turkey's commitments to the Republic of Cyprus, as these emerge from Ankara's membership talks," he said.

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