Athens News Agency: Daily News Bulletin in English, 11-04-05

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

CONTENTS

[01] Finmin rules out 'horizontal measures' to rein in deficit

[02] PM has meeting with George Soros

[03] Greek premier receives Libyan emissary - Statements by FM

[04] FM: 'No issue of Gaddafi coming to Greece"

[05] Greek FM speaks to BBC on Libya crisis

[06] Greece suspends functioning of embassy in Libya

[07] Statement by government spokesman on statements by Turkish deputy PM

[08] ND on 'source of wealth' statements; Keratea protests; ANA-MPA coverage

[09] Tsipras attacks gov't from Thessaloniki

[10] LA.O.S on education reform; troika visit

[11] President Papoulias arrives in Baku

[12] BoG: Greek banks raise cost of lending in Feb.

[13] Transport ministry reports good progress in OSE reforms

[14] Athenian Brewery top working environment in Greece

[15] OPAP selects two companies for next phase of a tender to find an IT provider

[16] Court: Pending EL.PE strike legal

[17] Work stoppages at ANA-MPA ruled illegal

[18] Civil servants' union calls for strikes

[19] Business briefs...

[20] Stocks drop 2.24 pct

[21] ADEX closing report

[22] Greek bond market closing report

[23] Foreign Exchange rates - Tuesday

[24] Ozone-layer 'hole' expected above Greece in April

[25] Elderly man shot and killed by burglars

[26] Rainy on Tuesday

[27] Athens Newspaper Headlines

[28] President Christofias and UN chief discuss meeting in June

[01] Finmin rules out 'horizontal measures' to rein in deficit

"There will, of course, be a uniform pay scale. In the uniform pay scale the injustices that exist in the current pay scale for civil servants will be lifted. Whether this will take place immediately or over a transitional period is something to be examined but it is clear that these injustices will be lifted," the minister underlined.

Speaking to NET state radio, the minister also ruled out another emergency levy and noted that a shortfall in revenue during 2011 had been covered in other ways, so that the deficit had actually been reduced by an additional 50 million euro above the original forecasts in the first two months of the year.

He announced that corrective measures to make up for the smaller revenue would target both spending and revenue increase and would not be sweeping horizontal reductions to pay and pensions, or general tax increases as in 2010.

According to Papaconstantinou, the greatest weight would now be given to encouraging growth through specific policies.

He also claimed that an economic recovery had already begun, since the recession was becoming ever shallower and there were hopeful messages from the export sector, while 2011 was expected to be a bumper year for tourism.

"In other words, 2011 will be the last year of recession for Greece. Secondly, we have the fiscal adjustment that is also absolutely necessary. At the end of 2011 we will have a deficit of 17 billion euro. This must fall to three billion and this implies political choices," he said.

Finally, the minister referred to the privatisation programme and the management of state real property, which he said would have a dual goal: promoting growth and bringing in revenues to pay down the debt.

During the same interview, Papaconstantinou once again ruled out the prospect that Greece will restructure its debt, noting that the cost of such a restructuring or 'haircut' of the Greek debt would be much greater than the benefit.

He also pointed out that the cost would not only concern Greece but also countries in the rest of Europe, so that it was not a viable option on a European level and one that would hit poor households hardest.

Papaconstantinou left open the possibility that Greece might not be able to return to borrowing on the markets in 2011, adding that it might then do so at the start of 2012.

[02] PM has meeting with George Soros

No statements were made afterward but sources said the meeting focused on the state of the global and European economies, especially in the eurozone, the difficulties facing the Greek economy and developments in Greece's neighbourhood, especially in north Africa.

[03] Greek premier receives Libyan emissary - Statements by FM

Afterwards, Foreign Minister Dimitris Droutsas said Athens had over the past days a series of contacts regarding developments in Libya.

"The prime minister spoke, amongst others, with the Libyan prime minister and this contact resulted in the dispatch of a special emissary here in Athens, whom we received within the framework that Greece has underlined from the very first: the efforts for a political, diplomatic solution in Libya must continue," Droutsas said in a statement.

"This emissary, as he has informed us, will continue his contacts in Turkey tomorrow (Monday) and then Malta.

"On our part, we underlined, we reiterated the clear message of the international community: full respect and implementation of UN resolutions, an immediate cease-fire, end of violence and hostilities, particularly against civilians in Libya. Judging from the emissary's words, it seems that the (Libyan) regime is also searching for a solution.

"What is necessary is a serious effort for peace and stability in the region. Greece will continue, in this effort, to offer its good services. We are in contact with all our partners and allies; we will brief them on our contacts as well as on Greece's ideas and proposals."

Earlier on Sunday, the Greek premier's office announced the meeting following a request by Libyan prime minister al-Baghdadi Ali al-Mahmudi in a telephone call to Papandreou.

The announcement by Papandreou's office also said that the Greek premier had a series of telephone contacts on the developments in Libya over the preceding 48 hours. He spoke with British Prime Minister David Cameron on Friday, while on Saturday he spoke with the prime ministers of Qatar and Libya, as well as with Turkish Prime Minister Recep Tayyip Erdogan earlier Sunday.

In a follow-up, Droutsas was quoted by a local radio station on Monday as noting that is important that the international community and the Libya regime begin a process to find a diplomatic solution to the conflict in the North African country.

He also called the contacts between Papandreou and the Libyan envoy "sincere".

"We in Greece are doing the necessary legwork; we're recording our thoughts and proposals, which we will share with our partners in order to proceed," the Greek foreign minister said.

[04] FM: 'No issue of Gaddafi coming to Greece"

"There is no issue of Gaddafi coming to Greece," Droutsas also stressed in a statement on Real FM radio station on Monday morning.

The Greek premier received acting Libyan Foreign Minister Abdulati Al-Obeidi, an emissary of the Gaddafi regime, on Sunday evening in Athens following a request by Libyan prime minister al-Baghdadi Ali al-Mahmudi in a telephone call to Papandreou.

Droutsas said that Greece is "in constant contact" with both the Libyan regime and the rebels.

He opined that, for the time being, there is no issue of Gaddafi leaving Libya, but added that the regime in Libya is "receiving messages from the international community as well as the rebels", and it is an issue "that needs to be seriously discussed".

[05] Greek FM speaks to BBC on Libya crisis

Referring to the meeting Greek Prime Minister George Papandreou had with the emissary of the Gaddafi regime, on

Sunday evening in Athens, Droutsas noted: "We ascertained that the regime in Libya understands that we must discuss, that we must move, that we must seek a political solution to the crisis, and I could say that this is a first important step."

The Greek minister also underlined that the Greek side is in contact with its partners and allies in order to discuss with them the next steps, adding that on Monday morning he had a telephone conversation with British Foreign Secretary William Hague and with other counterparts of his.

"I will continue to be in contact with them, discussing and examining the next steps, as well as some ideas and proposals through which Greece can contribute" in this effort, Droutsas added.

[06] Greece suspends functioning of embassy in Libya

According to a ministry announcement, Greek interests will be represented by the embassy of Hungary, the country which currently holds the EU six-month rotating Presidency.

[07] Statement by government spokesman on statements by Turkish deputy PM

Petalotis "reminded" "for all who forget" that "Greece, a country of the EU and the ONE, with great achievements until now, despite the temporary crisis, reserves for all its citizens and maintains a standard of living that for many other countries would evidently be enviable" and stressed that for this reason "the Greek people are proud for the course that they have defined for years and for all that they are planning for their future."

[08] ND on 'source of wealth' statements; Keratea protests; ANA-MPA coverage

ND spokesman Yiannis Mihelakis said his party will undertake the initiative in case no such move is made by the government, stressing that all political parties in Parliament should agree on the immediate implementation of the proposal which was first made by ND leader Antonis Samaras long ago.

ND suggested setting up an inspection committee to cross-check the aforementioned "source of wealth" statements, as well as, the financial situation statements submitted by the spouses and children of ministers.

The main opposition also suggested that competent state authorities be given the legal right to seize any unjustifiable or illegally acquired property.

In an unrelated statement, he sharply criticised an alleged quip by a Turkish government vice-president, namely, that Greece is deeply indebted and will soon be "begging". Mihelakis underlined that "no difficulty will make us sell out our national rights", while calling on the government to take a stance in response to this "shameless provocation".

As regards the continuing protests in the Keratea district, extreme southeast Attica prefecture, where local residents are opposed to the construction of a garbage processing centre in their area, Mihelakis stated that the situation is "out of control" and called on the government to adopt specific initiatives to ease the tension.

Finally, in reference to ANA-MPA coverage of a recent Parliamentary debate prompted by a tabled question submitted by the main opposition party, the ND spokesman sharply criticised the way in which the debate was presented, alleging that "the news report in question ignored basic points of the ND query", while he accused the national news agency of "supporting the government propaganda".

ANA-MPA statement

In a later development, the ANA-MPA management on Monday responded to the sharp criticism by Mihelakis.

"It is sad, to say the least, the fact that ND spokesman Yiannis Mihelakis - a journalist himself until recently - chose to launch an attack against the national news agency by criticising the way a fellow journalist covered the parliamentary debate in question," the statement reads.

According to the news agency, the issues that were allegedly ignored in the news report - namely, the ND positions of the National Strategic Reference Framework (ESPA) - were adequately covered, and in detail, in another ANA-MPA news report from the Parliament that concerned the statements made by ND leader Antonis Samaras.

Furthermore, ANA-MPA features a special page where announcements by political party officials are continually posted.

"The national news agency journalists do their job in a conscientious manner and the only directions they receive from the ANA-MPA management is to continue in this way and not give in to any kind of pressure or critical comments that may have as a possible goal to turn them into 'propagandists'," the statement stressed.

[09] Tsipras attacks gov't from Thessaloniki

"But the Greek people begin to realise and soon it (the government) will not be able to continue undisturbed its destructive work," Tsipras added, while speaking ahead of a party supporters' rally in Thessaloniki.

In his speech, the Syriza leader sharply criticised the government and its policies.

[10] LA.O.S on education reform; troika visit

After meeting with the chairman of the national council on education, Karatzaferis expressed certainty that dialogue will produce a good result and that he supports the efforts being made.

As regards an ongoing inspection by a team of EC-ECB-IMF experts to Greece, Karatzaferis said the Greek people are "living their worst days".

[11] President Papoulias arrives in Baku

President of the Hellenic Republic Karolos Papoulias arrived in Baku, the capital of Azerbaijan on Monday and as of Tuesday he will be paying a two-day official visit to Azerbaijan at the invitation of his counterpart the President of the Caspian country Ilham Aliyev.

President Papoulias is being accompanied by Foreign Minister Dimitris Droutsas, Marine Affairs, Islands and Fisheries Minister Yiannis Diamantidis and other officials.

Talks between Papoulias, Aliyev and the government delegations, that will begin in Baku on Tuesday, are expected to focus on economic relations between the two countries with emphasis being placed on energy issues, particularly the promotion of the plan on developing the ITGI natural gas pipeline.

Upon arrival, President Papoulias expressed his joy for visiting the country.

"I can not conceal my joy being in your country," Papoulias said during a welcoming evnt. "Your country is developping so fast...I confess that we are still behind in developping relations between Greece and Azerbaijan."

Financial News

[12] BoG: Greek banks raise cost of lending in Feb.

The central bank, in a report, said that in February the average interest rates on outstanding amounts of deposits and loans increased with the exception of rates on housing loans that remained unchanged. In particular, both the average interest rates on outstanding amounts of deposits from households and non-financial corporations with an agreed maturity of up to 2 years increased in February 2011 by 5 and 8 basis points to 3.55 percent and 3.69 percent respectively. The average interest rate on outstanding amounts of housing loans with over five years' maturity remained unchanged at 3.68 percent, while the corresponding rates on corporate loans and loans to sole proprietors increased by 4 basis points to 4.66 percent and 5.71 percent respectively.

In February, the average interest rates on overnight deposits from households and non-financial institutions remained unchanged at 0.44 percent and 0.34 percent respectively. Similarly, the average interest rate on deposits from households with an agreed maturity of up to 1 year remained at 3.75 percent.

In the case of loans, the average interest rate on consumer loans without a defined maturity (a category which includes credit card debt, open account loans, and debit balances on current accounts) increased in February 2011 by 5 basis points to 14.64 percent. Similarly, both the average interest rate on corporate loans without a defined maturity and the corresponding rate on loans to sole proprietors increased by 9 and 14 basis points to 6.90 percent and 9.72 percent respectively. The average interest rate on corporate loans with a defined maturity at a floating rate or with an initial rate fixation period of up to one year increased by 9 basis points to 6.23 percent for loans up to EUR 1 million, and by 48 basis points to 5.37 percent for loans above EUR 1 million.

On the other hand, the average interest rates on housing loans decreased by 2 basis points to 3.91 percent for loans at a floating rate or with an initial rate fixation period of up to one year and by 7 basis points to 3.57 percent for loans with an initial fixation period of over 1 and up to 5 years.

[13] Transport ministry reports good progress in OSE reforms

The ministry said the reforms were taking place within the timeframe provided and that performance for OSE in January 2011 was improved by 61.12 percent relative to January 2010.

While not releasing full financial date for OSE and TRAINOSE, the ministry said that manager bonefits that increased pay by 40 percent of their base salary had been scrapped, with managers now only eligible for one benefit due to their position ranging from 3 percent of base salary for a team manager up to 25 percent of base salary for a division director.

Of the programmed 1,654 staff transfers from OSE, 800 have already taken place and the remainder are pending since they also involve another four ministries.

[14] Athenian Brewery top working environment in Greece

In the category of companies with more than 250 employees, first place went to Athenian Brewery, followed by Elais-Unilever

Hellas, Tasty Foods, Hygeia hospital, Media Strom, Pharmathen, Leroy Merlin, Wurth Hellas, Vivechrom and Accenture in the top 10 spots.

In the category of companies with 50-250 employees, first place went to Xeros Hellas, followed by Kri-Kri dairy industry, Imperial Tobacco Hellas, Medtronic Hellas, Genesis Pharma,

Data Communication, 3M, Melissa Kikizas, Amgen Hellas and British American Tobacco Hellas.

The 9th annual Best Workplaces survey was conducted by the Institute in collaboration with the ALBA Graduate Business School. The purpose of the survey is to highlight and reward companies with the best working environment in Greece which, despite the economic crisis today, have invested substantially in the human factor.

The awards ceremony will take place on April 11.

[15] OPAP selects two companies for next phase of a tender to find an IT provider

[16] Court: Pending EL.PE strike legal

The union has called for a 10-day strike at Greece's partially state-owned and largest petro-chemical group.

In a statement after the ruling, EL.PE's management charged that the industrial action aims at the hiring of personnel for the refinery in Thessaloniki and not over the signing of a new collective bargaining agreement.

[17] Work stoppages at ANA-MPA ruled illegal

The work stoppages were scheduled to take place from Monday until Wednesday, at the hours of 9:00-12:00, 14:00-17:00 and 21:00-24:00.

The labour action was decided by the board of the Athens union of journalists ESHEA and the national journalists' federation EPHEA to demand that the ANA-MPA should not be given the status of a state-owned public utility company, adherence to the ESHEA and EPHEA collective agreements and against a second 10 percent cut in staff salaries at the ANA-MPA.

[18] Civil servants' union calls for strikes

ADEDY also said it would continue and escalate strikes until Easter.

Meanwhile, the European Trade Union Confederation (ETUC) has called a Euro-demonstration in Budapest to take place on April 9. The European trade unions will march against austerity and call for more social Europe, fair wages and quality jobs.

[19] Business briefs...