Athens News Agency: Daily News Bulletin in English, 11-09-06

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

CONTENTS

[01] PM speaks by phone with van Rompuy

[02] Van Rompuy statement on issue of Eurozone guarantees

[03] PM to chair Cabinet meeting on Tuesday

[04] DM Beglitis meets Israeli PM Netanyahu

[05] Government denies 'breakdown' in talks with EU-ECB-IMF troika

[06] ND call for elections 'irresponsible', government says

[07] Minister's 'drachma' comments generates reaction

[08] KKE in favour of Palestinian state recognition by UN

[09] SYRIZA's leader attacks government for poor preparation of school year

[10] Greece mission to Libya, humanitarian aid to Tripoli

[11] Justice ministry mulling changes to deportation legislation

[12] City of Athens briefs Parliament on municipal development agency; electoral rolls

[13] Former minister Mangakis passes away

[14] Youth Parliament event completed

[15] Gov't: Co-funded projects total 3.2 bln euros

[16] SEV President: Eurozone exit will return Greece to 1950s-era conditions

[17] Labour minister presents new Disability Certification Centre

[18] Civil service labor reserve denied

[19] ND leader's schedule for TIF events announced

[20] Bank credit remained negative in July

[21] Budget revenues up 3.0 pct in Aug

[22] Car registrations down 37.1 pct in Jan-Aug

[23] Business Briefs

[24] Stocks end at new 2011 lows

[25] Greek bond prices sharply up, ASE under pressure in midday

[26] ADEX closing report

[27] Foreign Exchange rates - Tuesday

[28] 40th Book Festival opens at Zappeion

[29] Emir of Quatar arrives in Greece for Ionian holiday

[30] One dead, two critically injured in rumble among football fans

[31] Kolonos police dismantle migrant trafficking operation

[32] Alleged migrant smuggler, migrants intercepted

[33] Wildfire near Konitsa

[34] Greece beats Croatia 74-69 in Eurobasket

[35] Fair on Tuesday

[36] The Monday edition of Athens' dailies at a glance Politics

[01] PM speaks by phone with van Rompuy

Discussion focused on implementation of the government's reform programme and the course of the fiscal measures adopted, government spokesman Elias Mossialos said.

The European Council president expressed support to the government's efforts and assured that the issue of guarantees was not raised, Mossialos commented.

In a radio interview earlier, van Rompuy had ruled out the likelihood of Greece exiting the Eurozone or any other country faced with difficulties.

[02] Van Rompuy statement on issue of Eurozone guarantees

European Council President Herman Van Rompuy Monday reaffirmed the Euro area's volition to resolving a dispute over guarantees, first requested by Finland, in order to finalise a second support mechanism for Greece, worth 109 billion euros.

Speaking after a meeting Finnish Prime Minister Jyrki Katainen, Van Rompuy said that "we're committed to finding a solution to this matter ...a solution that addresses Finland's concern and that does not undermine the wider purpose of reinforcing confidence and financial stability.

"... I'm confident we will find an agreement soon. Of course, we expect Greece also to deliver on all its commitments as to the strict implementation of the reforms agreed with the EU," he added.

[03] PM to chair Cabinet meeting on Tuesday

Issues to be discussed, amongst others, will be draft bills concerning the liberalisation of taxi cab sector, restructuring of the National Health System (ESY) and changes in legislation on the issue of illegal drug use.

Finance Minister Evangelos Venizelos will reportedly brief Cabinet measures regarding structural changes, while Citizen's Protection Minister Christos Papoutsis will raise the issues of illegal immigration and border management.

[04] DM Beglitis meets Israeli PM Netanyahu

"It is evident that both countries have the political will to shape a stable strategy on all levels and of course in the sector of defence and military cooperation," the Greek minister said.

Beglitis added that both sides are concerned over developments in the wider region and this, as he said, was the focus of the meetings that he had both on Sunday with his counterpart Ehud Barak and his meeting with Netanyahu on Monday. He also expressed his fear over stability in the region, on the occasion of developments in the Arab world. "I fear the 'Arab spring' that created many expectations under specific preconditions and with a wider international initiative, developing into an 'Arab winter' and creating centrifugal forces, therefore contributing to the destabilisation of the wider region and harming the interests of Greece in the Eastern Mediterranean," the Defence minister said.

He also underlined that Greece and Israel are the two pylons of stability in the region, stressing that the discussion on developments on bilateral Israeli-Turkish relations and its threats on research in the exclusive economic zone were at the focus of his contacts. In his meetings, Beglitis also discussed the Palestinian issue on which, as he stresses in a statement of his, Greece supports the creation of an independent, democratic, viable Palestinian state, based on the borders of 1967.

Beglitis will conclude his three-day visit o Israel on Tuesday and he will be received by President Shimon Peres, meet Foreign Minister Avigdor Lieberman and visit Jerusalem Patriarch Theofilos.

[05] Government denies 'breakdown' in talks with EU-ECB-IMF troika

Mossialos said the government's immediate aim was to cover the country's loan needs with the sum that is expected to be disbursed in September, whether this is considered the sixth installment of the first loan or the first installment of a new loan agreement.

The spokesman underlined that the processing of the 'labour reserve' measures for the core public sector will be completed soon and any Constitutional obstacles will be examined. He also explained that such obstacles would not apply for state-funded private-sector organisations and public utilities and enterprises.

Mossialos advised all sides to display calm and make sure the right messages were being broadcast abroad since the ratification of the July 21 agreement, which the government sees as crucial for covering the country's borrowing needs, was still pending in several EU national Parliaments.

He also denied reports that the prime minister will be announcing a flat VAT rate during his speech at the Thessaloniki International Fair, saying that all measures will be included in the new national taxation plan that will be announced at the end of September.

[06] ND call for elections 'irresponsible', government says

"In other countries, with smaller deficits than 15.4 percent that ND left in its wake, the parties reached consensus," Mossialos added, criticising ND's stubborn refusal to respond to the government's overtures for a consensus on key economic policy issues.

Noting that the government's only concern was to secure the country's future, he stressed that ND's stance was "clearly undermining".

Asked about the results of weekend opinion polls showing a pronounced lead for the main opposition party, Mossialos replied that governing on the basis of opinion polls and failing to do what was needful "does not best serve the nation's interests".

[07] Minister's 'drachma' comments generates reaction

"Imagine the worst scenario that can take place in this country: us returning to the drachma and the next Prime Minister being a drachma Prime Minister... I am saying this of course as an extreme approach in a country that I hope will never reach there because it will be a disaster," she said in a radio interview.

"By saying the word 'drachma' alone, Ms Diamantopoulou is terrorising the citizens and dramatically harming our national economy," main opposition New Democracy spokesman Yiannis Mihelakis said, adding:

"Did Ms Diamantopoulou not see that the spreads reached 1,730 points today. Nor did she hear the statements by Mr. (Herman van) Rompuy, who ruled out Greece's exit from the euro."

The Coalition of the Left (Synaspismos) also stressed that the government, with the memorandum policies all this period of time, is leading the country to chaos.

[08] KKE in favour of Palestinian state recognition by UN

"Any government - the Greek government included - that will not recognise Palestine's right to acquire the status of a Palestinian state in the UN General Assembly in September should be regarded as a moral instigator and accessory in the massacre of the rights of a people and in a new round of wars and possibly an all-out war in the region."

As regards a statement made a day earlier by Greek Defence Minister Panos Beglitis in Israel, on the "recognition of Israel's right to legitimate self-defence in response to Palestinian terrorist attacks," Papariga said such statements are "unacceptable and dangerous" and "could be indicative of Greece's stance at the UN".

[09] SYRIZA's leader attacks government for poor preparation of school year

Tsipras underlined that schools without funding and support could not be called state schools, while schools without teachers and books were not schools at all. He stressed that students having to resort to photocopies and old books was something that had not been seen for many decades and fully blamed Education Minister Anna Diamantopoulou for the disorganised state of the Greeks school system and the poor relations between government and teachers at all levels.

SYRIZA's leader appealed to the prime minister to take action to shelter education from the "maelstrom of memorandum policies" and not go ahead with choices that Tsipras termed "catastrophic".

[10] Greece mission to Libya, humanitarian aid to Tripoli

The team of foreign ministry officials will depart in two Greek Airforce C-130 transport planes, with stops at Tripoli and then Benghazi, where they will hold talks with the chairman and members of Libya's National Transitional Council.

Dollis will also visit Tahrir Square and a Greek school in Libya, where he will meet with members of the Greek community of the country.

[11] Justice ministry mulling changes to deportation legislation

The nine-member team of legal and law enforcement experts will examine the existing legislation and seek ways to overcome the obstacles that arise when courts seek to deport foreign nationals that are in the country illegally, especially when there are pending criminal proceedings or outstanding court sentences against them.

The ministry cited cases were foreign nationals might be deported but cannot because there are outstanding charges or sentences against them for entering the country illegally. In such a case, they have to remain imprisoned in Greece, further burdening the already overcrowded prison system.

The team of experts is due to complete its work and present its findings by October 15.

[12] City of Athens briefs Parliament on municipal development agency; electoral rolls

The document was sent to Parliament in response to a relevant question by opposition Popular Orthodox Rally (LA.O.S) MPs Adonis Georgiadis and Thanassis Plevris.

The two MPs demanded information by the ministry of the interior on action taken by the City of Athens as regards the AEDA management reform, the AEDA subsidiary in Bulgaria, as well as on its mode of operation and purpose.

Responding to a relevant question by the two LA.O.S MPs, municipal officials said that 72 of the 284 Bulgarian nationals who had registered to vote in the 2010 municipal elections were struck from electoral rolls after being established that they had declared false addresses.

[13] Former minister Mangakis passes away

He was a law professor and was jailed by a military junta in 1969-1972. In 1974 he participated in a national unity government. In 1980 he joined PASOK and in 1982 took over the justice ministry portfolio.

President Karolos Papoulias extended his condolences to the family of Mangakis.

"He was a charismatic jurist, a passionate fighter of democracy, an inspired politician who was distinguished for his honesty, dignity, sensitivity on issues of rights and freedoms," Papoulias said.

[14] Youth Parliament event completed

Addressing the 2011 Youth Parliament, Parliament President Filippos Petsalnikos underlined that the participation of the young is "comforting and encouraging" showing that "the new generation wants to assume an active role in public life".

The annual Youth Parliament event is attended by tens of secondary education students from Greece, Cyprus and Greek communities abroad who act as "teenage MPs".

The Youth Parliament plenum was attended by Republic President Karolos Papoulias, Prime Minister George Papandreou, Coalition of the Radical Left (SYRIZA) Parliamentary group leader Alexis Tsipras, representatives of opposition parties, the ministry of education leadership and Cyprus' ambassador, among others.

Financial News

[15] Gov't: Co-funded projects total 3.2 bln euros

Speaking to reporters, the minister said the National Strategic Benchmark Framework programme is seen as a catalyst for growth and efforts to exit the current economic crisis, while he added that the programme would accelerate further during the current quarter.

Chryssohoidis said he will announce updated figures over progress of the programme by the end of September. He said new environmental projects worth 542 million euros have been included in the plan.

In the transport sector, a total of 18 new projects, budgeted at 917 million euros, have been included, while in the digital convergence programme a total of 105 new projects, worth 191 million euros, have been included.

[16] SEV President: Eurozone exit will return Greece to 1950s-era conditions

Speaking in an event entitled "Greece 10 year ahead" hosted by McKinsley & Co, a management consulting firm, Daskalopoulos added that if this happens "the country will return to the 50s, poverty will be the rule and the people will be condemned to live in one of the poorest countries. All acquisitions won over the past decades and future prospects for the new generations will be lost. This is a nightmare scenario that will have to be prevented."

He said that it is not a coincidence that that our partners, international organizations and global markets foresee a decade of low growth, high unemployment and social distress for Greece, adding that "by forecasting annual growth rate under 1.5 pct they condemn us to the economic fringes of Europe, if not forcing us to exit the Eurozone".

Daskalopoulos stressed that the only way to salvage the country is to implement strict fiscal discipline; curb consumer extravagance; focus on production oriented economy, extroversion and investments and ensure survival through a long phase of intensive economic growth.

[17] Labour minister presents new Disability Certification Centre

The minister said that the new centre will be in charge of coordinating a uniform system that was previously scattered between a number of social insurance funds and local or regional authorities, thus ensuring significant cost savings and closing loopholes that allowed cheating on a large scale.

The centre will operate under the oversight of IKA-ETAM and aims to make the system more transparent, simpler, more efficient and prevent 'fake' pensions or people cashing in double benefits from different sources.

To illustrate the problems of the previous system, Koutroumanis pointed out that IKA was paying 135,000 disability pensions - or 11.7 percent of the total - in 2010, while the same percentage in the farmers' fund OGA was 16.56 percent and in the freelance workers' fund OAEE 10.6 percent.

The ministry's leadership hopes to restrict these percentages to 9 percent for IKA, 12 percent for OGA and 8 percent for OAEE by 2012. In the longterm, they aim to bring these percentages in line with the EU average by 2020.

The operation of the centre for IKA-ETAM pensions has already yielded results, leading to a 6.6 percent reduction in disability-related spending in 2011.

Unveiling plans for the centre in the near future, Koutroumanis said that the number of specialist doctors assessing applications will increase from 250 at present to 500 in the near future and ultimately to 1,000 in order to process the 28-30,000 applications for disability pensions received each month and reply to pension applications within roughly 40 days.

There are currently 324,000 people receiving disability pensions in Greece (in a population of roughly 11 million), while there are hundreds of thousands more that are eligible for various kinds of benefits, tax relief and other assistance. The government's aim is to quickly draw up a national register of persons with disabilities to be coordinated by the labour ministry and a register of those qualifying for various kinds of benefits and welfare.

[18] Civil service labor reserve denied

Ministry secretary general Elias Plaskovitis, speaking on state NET television Monday morning, said the reports were "out of the blue", adding that the reserve labor measure will not affect permanent employees in the public sector, the Peripheries and the municipalities.

[19] ND leader's schedule for TIF events announced

On Sept. 17, Samaras will meet with ITF S.A. and Helexpo S.A. board members, tour the fair's pavilions and later in the evening he will address local business community leaders at the Velidis convention centre and unveil ND's economic programme.

On Sept. 18, the ND leader will give a press conference.

[20] Bank credit remained negative in July

The central bank, in a monthly report, said that net flow of total credit to the domestic private sector was positive amounting to 13 million euros (July 2010: negative net flow of 126 million euros).

The net flow of credit to enterprises in July 2011 was positive, amounting to 564 million euros (July 2010: positive net flow of 105 million) and the annual growth rate of credit increased to 0.6 percent from 0.2 percent in June 2011 (December 2010: 1.1 percent). The net flow of credit to sole proprietors and unincorporated partnerships was negative, amounting to EUR -53 million in July 2011 (July 2010: positive net flow of EUR 36 million), and the annual rate of change of credit decreased in comparison with the previous month (July 2011: -4.0 percent, June 2011: -3.4 percent, December 2010: 0.3 percent).

In July 2011, the net flow of credit to individuals and private non-profit institutions was negative, amounting to euros -497 million (July 2010: -268 million euros). As a result, the annual growth rate of credit to individuals and private non-profit institutions slightly decreased further (July 2011: -2.7 percent, June 2011: -2.5 percent, December 2010: -1.2 percent).

[21] Budget revenues up 3.0 pct in Aug

In a statement, the minister said increase was stable and of permanent nature, and he predicted that trend would be strengthened as long as an economic recession showed signs of improvement.

Economou stressed, however, that efforts against tax evasion, an "informal economy" and smuggling was far from over and that the government will intensify efforts towards achieving its goals of boosting tax revenue.

[22] Car registrations down 37.1 pct in Jan-Aug

Hellenic Statistical Authority in a report said car registrations (new or used) totalled 93,962 in the January-August period, down 37.1 pct from the same period last year, after a decline of 30.8 pct recorded in the January-August period in 2010. Car sales were down 7.0 pct in August.

Motorcycle registrations also fell by 21.2 pct to 37,022 in the eight-month period this year from 46,959 units in the same period in 2010.

[23] Business Briefs

[24] Stocks end at new 2011 lows

Bank shares were the focus of selling activity, with Alpha Bank and Eurobank suffering heavy losses.

The local market followed a negative trend prevailing in other European markets, hit by worries over developments in the Eurozone debt crisis and its impact on European banks.

The composite index dropped 3.14 pct to end at 863.90 points, with turnover shrinking to a low 37.077 million euros. The Big Cap index ended 3.74 pct down, the Mid Cap index plunged 5.06 pct and the Small Cap index ended 4.39 pct lower.

OPAP (3.91 pct), Hellenic Petroleum (0.88 pct) and Jumbo (0.26 pct) were the only blue chip stocks to end higher, while Alpha Bank (10.71 pct), Eurobank (9.86 pct) and Piraeus Bank (8.47 pct) were top losers. National Bank shares fell 5.72 pct.

Travel (3.32 pct) was the only sector to record gains (3.32 pct), while Health (10.65 pct), Banks (6.99 pct) and Insurance (6.98 pct) suffered the heaviest percentage losses of the day. Broadly, decliners led advancers by 112 to 33 with another 45 issues unchanged.

Boutaris (14.29 pct), Sarandopoulos Mills (9.71 pct) and Livanis (8.70 pct) were top gainers, while Hygeia (13.89 pct), Apha Bank (10.71 pct) and Revoil (9.86 pct) were top losers.

Sector indices ended as follows:

Insurance: -6.98%

Industrials: -3.93%

Commercial: -2.35%

Construction: -2.91%

Oil & Gas: -0.72%

Personal & Household: -0.76%

Raw Materials: -6.25%

Travel & Leisure: +3.32%

Technology: -6.72%

Telecoms: -3.57%

Banks: -6.99%

Food & Beverages: -2.17%

Health: -10.65%

Utilities: -5.79%

Chemicals: -6.60%

Financial Services: -6.39%

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

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

Alpha Bank: 1.75

Public Power Corp (PPC): 5.43

HBC Coca Cola: 13.70

Hellenic Petroleum: 5.72

National Bank of Greece: 2.80

EFG Eurobank Ergasias: 1.28

OPAP: 8.78

OTE: 4.05

Bank of Piraeus: 0.54

Titan: 12.93

[25] Greek bond prices sharply up, ASE under pressure in midday

The Greek two-year bond yielded 49.47 pct, while the 10-year benchmark bond yielded 17.28 pct. The yield spread between the 10-year Greek and German benchmark bonds widened to 15.36 pct, while the Greek CDS rose to 23.5 pct.

Prices remained under pressure also on the Athens Stock Exchange with the composite index of the market testing new year lows around 866.61 points in midday trading. Bank shares were at the focus of selling activity.

[26] ADEX closing report

[27] Foreign Exchange rates - Tuesday

U.S. dollar 1.433

Pound sterling 0.888

Danish kroner 7.560

Swedish kroner 9.234

Japanese yen 110.19

Swiss franc 1.127

Norwegian kroner 7.787

Canadian dollar 1.417

Australian dollar 1.357

General News

[28] 40th Book Festival opens at Zappeion

The Festival, currently in its 30th year, is dedicated this year to the 2011 European Year of Volunteering.

The 40th Book Festival, which was inaugurated by Greek President of the Republic Karolos Papoulias, is organised by the Association of Book Publishers in collaboration with the City of Athens' Cultural Organisation.

Some 150 publishers are presenting more than 50,000 books at the Festival, which also includes a pavilion dedicated to books and magazines that were censored or prohibited during the 7-year dictatorship in Greece and a pavilion of the National Transplants Organisation with informational material on organ donation.

Running through September 18, the Festival is open to the public Mondays-Thursdays from 6:00 in the afternoon to 10:30 at night, on Fridays and Saturdays from 6:00 p.m. to 11:00 p.m., and on Sundays from 11:00 a.m. to 10:30 p.m.

[29] Emir of Quatar arrives in Greece for Ionian holiday

The Emir, accompanied by Qatari prime minister and foreign minister Hamad bin Jasim bin Jabir Al Thani and their entourages arrived by royal plane at the Ioannis Capodistrias Airport on the island of Corfu, from where the boarded a luxury yacht and set sail for the Ionian.

According to information, the Emir, who is a frequent holiday visitor to the Greek seas, in recent years has been 'flirting' with two islets in the Ionian, one of which is Skorpios, formerly owned by the late Greek shipping magnate Aristotle Onassis which has passed to his granddaughter Athena Roussel, and another nearby islet some 3 miles to the south.

[30] One dead, two critically injured in rumble among football fans

A 21-year-old man from Mallia died of stab wounds while two others were hospitalised and reported in critical condition.

Police have made several arrests and are continuing the investigation to locate the perpetrators.

Citizen's Protection Minister Christos Papoutsis on Monday placed absolute responsibility for the bloody incident on football team-affiliated fan clubs, and expressed his condolences over the incident and fatality.

"This case, has nothing to do with fans or supporters, the responsibility of the heads of the clubs is absolute..."

[31] Kolonos police dismantle migrant trafficking operation

Two Afghan men aged 23 and 25 years old, respectively, were arrested when 31 illegal migrants were found in the truck they were driving. The migrants, 27 Afghans and four Pakistanis, hoped to get passage to Italy.

A police investigation showed that members of the ring operated an internet service provider on Acharnon Street, through which they made deals for the transport of illegal migrants to European countries and received the sums agreed on.

A search of the premises revealed 1,080 euro, a bank book with two withdrawal and one deposit slip, three cash transfer receipts and three mobile phones. Police also confiscated a private truck.

[32] Alleged migrant smuggler, migrants intercepted

During a police check, the man showed forged documentation for the vehicle, while ferry boat tickets were found along with three forged Bulgarian passports. The illegals reportedly aimed to travel to Italy.

[33] Wildfire near Konitsa

According to initial assessments by the fire brigade and police, arson is suspected as the wildfire broke out simultaneously in at least from two different locations.

Basketball

[34] Greece beats Croatia 74-69 in Eurobasket

Weather Forecast

[35] Fair on Tuesday

[36] The Monday edition of Athens' dailies at a glance

ADESMEFTOS TYPOS: "All the public transport means and taxis planning to strike".

AVRIANI: "Papandreou going to the Thessaloniki International Fair (TIF, where the prime ministers traditionally unveil economic policy for the following year) with 11,000 policemen".

DIMOKRATIA: "Where is Venizelos headed? - Makes one gaffe after the other, sees ghosts and 'pushing' behind-the-scenes for early elections - To announce layoffs and salary reductions in public sector after the TIF".

ELEFTHEROS TYPOS: "Sweeping salary reductions and layoffs in the public sector".

ELEFTHEROTYPIA: "Europe undermining its own plan".

ESTIA: "Huge losses in just two years (of PASOK governance)".

ETHNOS: "Golden 'party' with salaries in the municipalities".

IMERISSIA: "Fears and objections to BlackRock's (world's largest asset manager) methods in evaluating the quality of the Greek banks' loans portfolio".

NAFTEMPORIKI: "Reductions in VAT, tax rates open for TIF 'basket' of measures (to be presented by premier)".

TA NEA: "The Papandreou-Venizelos plan - Operation 'troika' - The good and the bad scenario".

VRADYNI: "ND leader Samaras: Elections will give the solution".

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