Antenna: News in English (PM), 98-03-19

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From: Antenna Radio <http://www.antenna.gr> - email: antenna@compulink.gr

Last Updated: Thursday, 19-Mar-98 21:33:54

CONTENTS

[01] Greece-Turkey

[02] Olympic Airways

[03] Stock exchange

[04] Arsenis-devaluation

[05] Pensions

[06] Greek defence industry

[07] Soccer

[01] Greece-Turkey

US state department spokesman James Rubin has good words to say about the state of Greek-US relations. He also believes that the international court in the Hague is the best place for Greek-Turkish differences to be settled.

"The relationship between Greece and the US is excellent....the court of justice best mechanism.... sit down and talk about issues...the greater chance there is to resolve some of those disputes".

Rubin adds that secretary of state Madeleine Albright would become personally involved in helping to bring Greece and Turkey together.

"She will engage if she thinks it can make a difference....on the part of Greece and Turkey.

Washington looks to Greece to play a leading role in the troubled Balkans. With crisis in Kosovo threatening to spill over into war, the US hopes Greece can persuade Serbia to search for a peaceful solution to its differences with Kosovo's Albanian majority.

"We certainly would hope that the Greek government....convince the Serbian government that....police to solve problems....consturctive role".

The US looks with favour on Cypriot president Glavcos Clirides's invitation to Turkish-Cypriots to sit in on his governnment's negotiations to enter the European Union.

"President Clirides's proposal we thought this was...can be implemented".

So far, the Turkish-Cypriots have given no indication that they intend to accept the invitation. from Clirides.

[02] Olympic Airways

At a press conference Thursday, Tasos Mandelis explained that the cuts are necessary to pay for new planes, and a new international airport in Athens.

Olympic ran a deficit of 20 million dollars in 1997 - its operating costs were four times that.

To fly out of the red and into the black, says Tasos Mandelis, Olympic needs to shave 155 million dollars a year off its operating budget, for the next five years. There will be fewer temps taken on at high season, so permanent employees at the debt-ridden state carrier will have to work longer hours.

Justifying the cost-cutting measures, Mandelis notes that there are huge outlays associated with the restructuring plans aimed at getting Olympic ready to soar competitively into the next century.

There's the new international airport outside Athens to be paid for - it's currently under construction; and there are new jets being added to the fleet - 12 planes have already been ordered.

Mandelis says to pay for that and much more, and to guarantee the future quality of the airline's services - and even its survival - Olympic's operating costs have got to be cut.

In addition to streamlining, the government also wants to make the airline more flier friendly: it wants to change its flight schedules so they're more responsive to demand - for example, Mandelis believes Olympic could take greater advantage of Balkan routes; the government also wants to reduce the number and length of flight delays.

How will Olympic's staff respond? The government hopes employees will see the logic of its plans, and climb willingly on board what will be a tough restructuring venture.

To entice the employees on board, Mandelis is offering the staff chance to buy a six per cent stake in the airline as it is partially privatised. If the restructuring operation goes well, then employees will be given the option on a further four per cent at the end of the year two thousand.

[03] Stock exchange

Monday's rise was over seven per cent, as foreign investors returned after Friday's flight amid rumours of the devaluation.

The market gained over five per cent on Tuesday, and another one per cent on Wednesday. At closing Thursday, the exchange was 20 per cent up on last week.

[04] Arsenis-devaluation

Arsenis was asked by Antenna's Giannis Pretenteris why the government decided to devalue the drachma after over a year of insisting that it would do all in its power to prevent the currency from declining.

Arsenis, a former economy minister said the strong drachma policy was predicated on the expectation that a strong currency would inspire confidence and attract productive investment. That would raise productivity and bolster the drachma's real strength, he explained. Unfortunately, the investments weren't adequate, making the devaluation necessary.

Arsenis added that Pasok's economic policies, though stern, will continue to bear the needs of wage-earners and pensioners in mind.

[05] Pensions

The government examines the formation of a body which would supervise the public insurance funds.

In vue of the end of the first phase of social dialogue with social groups, the government considers new legislation initiatives regarding the insurance issue. The first phase of social dialogue referred to beating tax evasion.

But, as for the age pension limits, the deputy labour minister said there is no case they might change.

The government's aim is to adapt Greece's insurance system in a new situation within the next two years. But, there must be found ways to support the insurance funds, as their mobile and immobile fortune remains almost inexploited.

Giorgos KoutroumAnis, president of the panhellenic federation of organisations personnel, said, "Our estimation is that insurance funds can gain from a better exploitation of their mobile and immobile fortune".

Totally, the fortune of public insurance funds is over 9 billion dollars (3 trillion drs). But it needs a better management.

Platon Tinios, Finance expert and prime minister's advisor, said, "There should be a special body formed to supervise the active management of the funds' reserve. Funds will be obliged to hire financial advisors who will propose the policy of exploitation of the fortune to the administration board".

According to the data announced in the conference, in the last twenty years only there have been lost about 3.7 billion dollars.

Earlier in the day, pensioners rallied downtown Athens protesting against the devaluation of the drachma. They blamed the government for causing a raise in prices of all goods, which in addition to a slight increase in pensions, causes severe problems to their financial situation.

The government wants to make better use of state pension funds. Fearing that overburdened pension funds will soon be unable to meet the demands placed on them by retirees, Pasok may set up a body to manage fund assets.

The nation's retired workers are already up in arms over what they say are niggardly pensions. And people still in work fear the rationalisation of the funds will include raising the retirement age.

But at a conference on the funds, deputy labour minister Nikos Farmakis assured everyone that there will be no change to the retirement age.

The government hopes that it can bolster the funds by profitably investing their capital - some 9 billion dollars in all.

Farmakis says that over the past 20 years 3.7 billion dollars have been lost due to bad management of the funds.

[06] Greek defence industry

The Greek Aerospace Industry briefed members of parliament's foreign relations and defence committee on its potential.

And the MPs were impressed.

Industry officials said their aim is to make Greek Aerospace even more efficient so it can contribute to the nation's armaments programmes on an ever- growing basis.

Greek Aerospace, founded 23 years ago, has carried out maintenance on some 1300 planes; that's 60 to 70 a year.

With a hundred and fifty customers around the world, it not only provides repair services: it also manufactures air navigational and communications equipment.

The company has 2870 employees. And Pasok MP Levteris Verivakis says the Industry's market potential is a long way from being realised.

Greek Aerospace currently has a 3 to 4 per cent share of the government's armaments contracts. It's aim is to increase that to 5 per cent. Turkey's military industry has a 35 per cent stake in Turkish arms programmes.

[07] Soccer

The first match, in Athens, ended in a scoreless draw. And Aek coach Doumitrou Doumitriou asked for a quick goal going into the return leg.

A goal comes quick, but just into the SECOND half, not the first half. And when it comes, it comes off the foot of a Russian player. Make it one-nil early in the second half.

Aek can still advance to the semi-finals if it can equalise, and it does just that with a penalty kick mid-way through the second half.

But Locomotive makes the final score 2-1 with a shot from inside the box just minutes before the end of the contest.

(c) ANT1 Radio 1998

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