Athens News Agency: Daily News Bulletin in English, 15-05-21

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

CONTENTS

[01] Brussels Group meets in Brussels to bridge gap on ongoing negotiations

[02] State Minister Flambouraris briefs SYRIZA on ongoing negotiations

[03] Varoufakis defends VAT reform proposal

[04] Government wants a single agreement to end austeity, restore liquidity, gov't circles say

[05] ND accuses government of secrecy on details of oingoing negotiations

[06] Die Linke calls on Social Democrats to support the Greek government, co-chairman Riexinger tells ANA-MPA

[07] Parliamentary committee investigating causes of Greek crisis publishes list of witnesses

[08] 'We are facing the worst humanitarian crisis of our time,' UNHCR spokeswoman Fleming tells ANA-MPA

[09] Greek President meets with Justice minister Paraskevopoulos

[10] Greece, institutions back to drawing board on VAT after creditors block lower rate for electronic transactions

[11] ECB raises ELA to Greek banks by 200 million euros

[12] Greek government debt fell in Q1

[13] Russian Railways still interested in acquiring privatised Greek rail companies, Yakunin says

[14] Greek industrial turnover index down 2.9 pct in March

[15] Greek stocks end moderately lower

[16] Greek bond market closing report

[17] ADEX closing report

[18] ADEDY calls work stoppage from 12.00 until end of shift

[19] The Wednesday edition of Athens' dailies at a glance Politics

[01] Brussels Group meets in Brussels to bridge gap on ongoing negotiations

The Brussels Group is meeting on Wednesday in Brussels to bridge the gap on open issues discussed in the ongoing negotiations between Greece and its lenders.

Greek sources in Brussels with knowledge on the subject said talks between Greek authorities and the representatives of the institutions will continue until Saturday, without excluding more meetings.

The Greek side wants an emergency Eurogroup meeting to be held before the start of June which will issue a statement saying progress has been achieved and a comprehensive agreement is close at hand. The same sources argue that such a statement would allow the ECB to raise its cap in the issuance of T-bills.

The issues still discussed in the negotiations are the VAT, pension and labour reforms, non-performing loans, the fiscal gap, primary surpluses and an analysis of debt sustainability. Concerning VAT, the sources say it's possible to agree with lenders on three categories for the tax, with food set at the lower rate. On pension reforms, the thorny issue is limiting early retirement, according to the sources.

[02] State Minister Flambouraris briefs SYRIZA on ongoing negotiations

According to party sources, Flambouraris said the Greek side is aiming at a deal which will foresee a low primary surplus target, will not include wage and pension cuts or laws allowing mass lay-offs, will secure labour laws and collective labour agreements, will foresee debt restructuring and a growth package to redistribute tax burdens.

The same sources said the party's central committee will convene again on the weekend.

[03] Varoufakis defends VAT reform proposal

Addressing a meeting of the Athens Chamber of Commerce and Industry, Varoufakis said that the proposal submitted to Brussels Group was responsible, growth-orientated, combating bureaucracy and offered enterprises and the state the opportunity to vision a better future.

The finance minister noted that the institutions have been telling Greece for years it was important to lower the number of VAT factors and that reactions were positive. "I wish we could reach an agreement," he noted, adding there were political dimensions raising hurdles to a technocratic settlement on the issue.

He also said that "there is nothing we want more than to reach an agreement and to function like a normal country."

[04] Government wants a single agreement to end austeity, restore liquidity, gov't circles say

The circles pointed to the premier's speech at the annual general meeting of the Hellenic Federation of Enterprises (SEV) on Monday, during which he said the eventual agreement will not just "seek a short-term funding breathing room" but will aim at dealing with the public sector's "medium and long-term funding problem until we can safely return to the markets."

In other words, the government is by no means negotiating a deal in two or three phases which would secure temporarily the payment of some loan installment, the same circles said. This logic, they continued, was followed by the previous coalition government and leads to new austerity measures and ever-increasing economic asphyxiation.

The government wants to achieve a deal that would end austerity, restore liquidity in the real economy and open the country's potential for growth.

[05] ND accuses government of secrecy on details of oingoing negotiations

"It's not only the phenomenal sloppiness with which they negotiate on issues such as the VAT, it's also the lies they say and for which they are not held accountable, as if we're living in a one-party state," Costas Karagounis said.

[06] Die Linke calls on Social Democrats to support the Greek government, co-chairman Riexinger tells ANA-MPA

"(German Chancellor Angela) Merkel and (German Finance Minister Wolfgang) Schaeuble unfortunately managed to forge a kind of holy alliance against (Greek Prime Minister Alexis) Tsipras. But it is fragile to the extent that other nations suffer from the same austerity policy. That is why as a leader of the German Left, I think that this is not only an issue between Greece and the EU, but an issue that concerns all Europe. If this situation continues, the crisis will worsen and will eventually lead the European economy to recession," Riexinger noted.

Regarding the pressure on a third aid package to Greece, Riexinger stressed: "Everyone knows that Greece will never be able to repay its debts on its own and cannot be disengaged from the trap of austerity. For the left, the central issue is not the 'aid packages', but the terms. So far Greece has not been helped at all; most of the funds were absorbed by banks in order to be saved, and not the Greek people. The crucial issue for us is whether Greece is given the opportunity for economic and social development."

Moreover, he estimated that "the EU does not want Greece's exit from the eurozone, because there would be the danger of other countries following. However, an accident cannot be ruled out if they continue to negotiate in that way and Greece is not given alternatives."

The full interview is available for subscribers at ANA-MPA website.

[07] Parliamentary committee investigating causes of Greek crisis publishes list of witnesses

Committee chairman Dimitris Vitsas sent a complete list of the first 25 witnesses to be examined in the first five sessions, in order of appearance, to the committee members. The list was finalised on Tuesday and the witnesses will be examined in sets of five per sessions that end on June 9.

The list includes the head of Greek agencies and organisations, such as the Foundation for Economic and Industrial Research (IOBE), the head of the Greek Parliament's State Budget Office Panagiotis Liargovas, trade unions and employer associations, academics, former senior justices at the Council of State, the General Accounting Office, Public Debt Management Agency, Greece's current and former representatives at the International Monetary Fund (IMF) and board members of the Hellenic Statistical Agency (ELSTAT).

The Committee's chairman has also prepared a letter to send to a number of foreign witnesses that the parties participating in the committee agreed should be invited to testify in the investigation.

The letter requests that they notify the committee of a date when they will be able to attend its sessions and reply to questions in Athens, with all expenses paid, or to suggest dates when a delegation from the Greek Parliament might visit them in order to pose the committee's questions. It also invites them to suggest other methods in which they might assist the committee's work.

Among the foreign officials that the Greek parties suggested should be asked to testify were former IMF Managing Director Dominique Strauss-Kahn, former ECB President Jean-Claude Trichet, the heads of the 'troika' missions to Greece Poul Thomsen, Klaus Masuch and Matthias Mors and former European Commissioner Olli Rehn.

Main opposition New Democracy and opposition parties PASOK and Communist Party of Greece (KKE) asked that Finance Minister Yanis Varoufakis should be summoned, while nearly all parties agreed on the need to summon the former finance ministers Evangelos Venizelos, George Papaconstantinou and Yannis Stournaras.

[08] 'We are facing the worst humanitarian crisis of our time,' UNHCR spokeswoman Fleming tells ANA-MPA

"More and more people are forced to leave their homes. It is the largest number of people since the World War II," she underlined and stressed the need for massive "investments" in host countries as well as funding of the United Nations High Commissioner for Refugees and other humanitarian organizations working to help these people start a decent life.

On host countries with the greatest migratory pressure, such as Greece, Italy and Malta, Fleming stressed the need to redefine the European policy on the specific issue and described the asylum system in Europe as "dysfunctional".

The full interview is available for subscribers at ANA-MPA website.

[09] Greek President meets with Justice minister Paraskevopoulos

"The acceleration of judicial procedures is one of the biggest problems and the ground for this issue must finally be laid," Pavlopoulos told the minister.

Paraskevopoulos discussed with the president the biggest challenges facing Justice and commented that speeding up procedures "is the most important issue".

Financial News

[10] Greece, institutions back to drawing board on VAT after creditors block lower rate for electronic transactions

The talks are focused on moving some products and services to the higher VAT rate while preserving a substantially lower rate for basic household goods.

Under the current system, there is a low rate of 13 pct and and high rate of 23 pct VAT, as well as a 'super-low' 6.5 pct rate. The government's aim is to preserve the super-low rate and transfer certain basic goods to this category, along with books, pharmaceuticals and selected other products.

The talks will then focus on which products and services will remain at the 13 pct VAT rate, with the government's proposals calling for retaining this category for food stuffs, restaurant and catering services and other basic categories of services to consumers. The Greek government's aim is to include as many products and services as possible in the regular VAT rate and avoid their transfer to the high 23 pct VAT rate that is expected to remain unchanged.

The government has not ruled out the possibility of a change in the 13 pct rate, however.

Still on the table is the discussion on abolishing the lower VAT rate for the Aegean islands and other the tax exemptions. To offset this, the two sides are discussing various possible methods for tax rebates to businesses on the islands, based on the number of receipts issued. This is expected to encourage greater compliance with tax laws, among others.

[11] ECB raises ELA to Greek banks by 200 million euros

The increase is the smallest since the bank first tightened liquidity towards Greek banks in February.

According to information, the level of discounts applied to collateral that lenders pledge for emergency loans was discussed but no decisions were taken. The issue will be discussed again at next week's meeting.

[12] Greek government debt fell in Q1

The Public Debt Management Organisation, in a report said that the Greek state's cash reserves totaled 796.5 million euros at the end of March, from 2.574 billion euros at the end of December 2014.

[13] Russian Railways still interested in acquiring privatised Greek rail companies, Yakunin says

Russian Railways (PZD) are still in talks with the Greek government on the possibility of submitting bids in the privatisation of related Greek state companies, Russia's railway boss Vladimir Yakunin said on Wednesday.

Talking to the Public Chamber of the Russian Federation - a sort of alternative "Parliament of experts" - Yakunin said these companies included the Greek trains operator TRAINOSE, the rolling stock repair and maintenance company ROSCO and the port of Thessaloniki.

Yakunin stressed that "nothing had gone quiet" and that the Greek Prime Minister Alexis Tsipras had requested a meeting with him during his recent visit to Moscow, during which he indicated that the Greek side was also interested in such cooperation.

"During the course of the talks with Vladimir Putin, Tsipras confirmed that Russian Railways are interested rightfully and agreed that our contacts will be continued. Therefore we are continuing our work," he said.

According to the Russian state news agency Ria-Novosti, Russian Railways would like to acquire all three Greek state companies simultaneously.

[14] Greek industrial turnover index down 2.9 pct in March

The statistics service, in a report, attributed this development to a 3.2 pct decline in the mining turnover index and a 2.9 pct fall in the manufacturing turnover index. The domestic index fell 6.3 pct and the external market index rose 1.3 pct in March.

[15] Greek stocks end moderately lower

Viohalco (4.22 pct), Athens Water (1.26 pct), OPAP (1.16 pct) and Coca Cola HBC (0.24 pct) were top gainers, while Eurobank (4.08 pct), PPC (3.98 pct), Terna Energy (3.74 pct) and Ellaktor (2.63 pct) suffered the heaviest percentage losses of the day.

Among market sectors, Health (3.27 pct), Chemicals (1.27 pct) and Technology (0.77 pct) scored big gains, while Utilities (2.51 pct), Banks (1.81 pct) and Telecoms (1.73 pct) suffered losses. Broadly, decliners led advancers by 55 to 51 with another 27 issues unchanged. Mohlos 29.60 pct), Kathimerini (19.28 pct) and Galaxidi (18.75 pct) were top gainers, while AEGEK (11.54 pct), Attica Publications (10 pct) and VIS (9.95 pct) were top losers.

Sector indices ended as follows:

Banks: -1.81%

Insurance: -0.67%

Financial Services: -0.24%

Industrial Products: +0.62%

Commercial: -0.17%

Real Estate: -0.38%

Personal & Household: -0.70%

Food & Beverages: 7.241.13 +0.24%

Raw Materials: 2.557.67 -0.18%

Construction: -1.22%

Oil: -0.45%

Chemicals: +1.27%

Media: unchanged

Travel & Leisure: +0.74%

Technology: +0.77%

Telecoms: -1.73%

Utilities: -2.51%

Health: +3.27%

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

Selected shares from the FTSE/ASE

Large Cap index closed in euros as follows:

Alpha Bank: 0.315

Eurobank 0.141

Public Power Corp (PPC): 5.07

Coca Cola HBC: 20.67

Hellenic Petroleum (ELPE): 4.66

National Bank of Greece: 1.23

OPAP: 8.70

OTE: 8.50

Piraeus Bank: 0.444

Titan: 21.04

Grivalia Properties: 8.25

Aegean Airlines: 7.34

[16] Greek bond market closing report

In interbank markets, interest rates continued moving lower. The 12-month rate eased to 0.162 pct from 0.164 pct, the nine-month rate fell to 0.101 pct from 0.103 pct, the six-month rate fell to 0.055 pct from 0.057 pct, the three-month rate was unchanged at -0.012 pct and the one-month rate stable at -0.052 pct.

[17] ADEX closing report

General News

[18] ADEDY calls work stoppage from 12.00 until end of shift

In its statement, ADEDY, said among others, that it claims "free public health services for everyone, adequate staffing and funding of the national health system (ESY), abolition of the memorandum policies that lead to the shrinkage and privatisation of the system, the payment of arrears, and the recovery wage losses."

It also called on federations and associations to participate in the mobilisations and the rally outside the Health ministry, at 12.30.

[19] The Wednesday edition of Athens' dailies at a glance

DIMOKRATIA: Turmoil over credit cards

EFIMERIDA TON SYNTAKTON: Inter-party conflicts

ELEFTHEROS TYPOS: VAT...Varoufakis fiasco

ESTIA: Unprecedented improvisations

ETHNOS: Scenarios on VAT rates

IMERISSIA: Confusion over the VAT

KATHIMERINI: Tax on bank transactions

NAFTEMPORIKI: Cloudy landscape at the last moment

RIZOSPASTIS: 'First installment' of the anti-popular deal

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