Targets to make Greece a transit centre for energy sources
NEWS IN DETAIL
Athens: Careful consideration needed before funds can go to Turkey
Greece said today that the European Union had to carefully consider the
effects of allocating funds to Turkey, following reports that the European
Parliament's budgetary committee had overrruled a Parliament resolution to
freeze funding for Turkey under the MEDA programme.
"The bodies of the European Union must be careful in the transfer of funds
to Turkey in case this fact flatters and excuses their behaviour,"
government spokesman Dimitris Reppas told reporters.
He was commenting on reports that the European Parliament's budgetary
committee had decided on Thursday to not accept a freeze on Community funds
to Turkey decided by the European Parliament last month.
The resolution, supported by nearly all political groups in the assembly,
had frozen all funds to Ankara under the MEDA programme "except those
regarding the promotion of democray, human rights and social life".
The resolution was taken following Turkey's failure to meet its obligations
to the European Union on improving its human rights record and its
increasingly aggressive policies in Cyprus and the Aegean.
Reppas said that Athens desired good relations with Turkey as long as it
respected the rules of international law, treaties and conventions" and
added that Greece rejected the adoption of confidence-building measures
with Turkey.
"There is no form of communication or dialogue with Turkey whatsoever on
political questions," he said, adding that Greece must continue its
procurements programme.
Asked to comment on Turkish Cypriot leader Rauf Denktash's statement that
if Cyprus became a member of the European Union, then the Turkish-occupied
territories would be annexed by Ankara, Reppas said Denktash "rather than
intensifying tension, might be better off doing something for the Turkish-
Cypriots, who live in conditions worse than ever before."
Greece's equal participation in European unification, defence of its
sovereign rights, social and institutional modernisation as well as a
leading role in the Balkans are the basic orientations of the government's
policy over the next four years, Prime Minister Costas Simitis said last
night in unveiling his government's policy statement in Parliament.
"The basic axis, the central and uncompromising aim of our policy, is the
country's equal participation in European unification "Our successful
response to convergence is not a need that arises from external compulsion...It
is a national strategy, which renders Greece competitive in the international
division of labour, which secures the development of the economy, which
creates the healthy prerequisites for the exercise of effective social
policy," he said.
Mr. Simitis described Turkey as the main factor of destabilisation in the
region, nurturing "historically baseless visions of reviving the Ottoman
Empire."
"The status of the Aegean is absolutely clear, and is defined with accuracy
by the history of thousands of years and international treaties...Our
policy is steady. There is no issue of dialogue with Turkey, which, if it
so desires, can have recourse to in ternational adjudication...
"We shall continue the strategy of diplomatic vigilance and deterrent
capability of our armed forces, with their modernisation and upgrading, and
the implementation of the joint defence doctrine involving Greece and
Cyprus. The Cyprus problem constitutes the first priority of (our) foreign
policy," he added.
Economy
Turning to the economy, the premier described the fiscal problem as a
national issue, and 1997 as an especially crucial year.
"The further de-escalation of inflation, the trimming of the state sector
as a percentage of GDP, as envisaged in the Convergence Programme, the
acceleration of the development process and the strengthening of social
solidarity, constitute basic aims of our macro-economic policy in the
coming years.
"Fiscal adjustment will not be based on squeezing workers' incomes.
"The budget and comprehensive macro-economic planning are especially
crucial issues for 1997 and the years thereafter. Greece, as other
countries, will be judged in the coming years for its participation in
Economic and Monetary Union. Our options today will decisively determine
when and under what terms we shall participate in EMU," the premier
continued.
Providing a reminder that only interest payments on the national debt
represented a greater amount than all the expenses for defence, education,
health and welfare together, he reiterated that fiscal rationalisation was
the basic prerequisite for Greece 's participation in European decision-
making centres.
Measures call for increasing revenue, reducing waste
There will be determined intervention in crucial aspects of public finance,
he said.
"First, a clampdown on waste and utilisation of state property. State
expenses must correspond to the real needs of society. The functioning of
the state must restrict itself to contemporary needs," he said, continuing:
"Secondly, interventions in the field of tax exemptions, grants, and
subsidies. We shall not accept the perpetuation of privileges and
favouritist treatment, which increase social inequality and have no place
in a modern and fair taxation system," he continued.
He said a third intervention will be a fair distribution of the cost among
all social classes.
"The fight against tax evasion and the informal economy will be intesified.
Social justice demands this," he stressed.
Regarding employment, Mr. Simitis said that the development effort would
produce 180,000 new jobs until the year 2000.
Industrial policy would aim at improving competitiveness, and restructuring
and strengthening the country's industrial base through support for the
creation of new entrepreneurial activities, and modernisation of existing
units, particularly small- and medium-size enterprises in high technology
fields.
He added that the policy of privatisation of enterprises would continue,
based on the criteria of their viability, reliability of investors, and the
safeguarding as many jobs as possible. Such enterprises included large
public utilities, such as the Hellenic Telecommunications Organisation
(OTE) , the Public Petroleum Corp. (DEP) and smaller state-controlled
banks.
The premier said that modernisation in agriculture, improved marketing, and
supports to new farmers would be the main means of promoting dynamism and
competitiveness in the sector.
Education, health and environment
Regarding education, he reiterated that the government's basic principle
was "support for state education at all levels, qualitatively upgraded and
effective."
Concerning the health care sector, Mr. Simitis said the National Health
System (ESY) would continued to be the government's central option.
With regard to the environment and the quality of life, measures would
include a speeding up of the drafting of a National Land Register, energy-
saving schemes and promotion of milder forms of energy, as well as the
strengthening of international cooper ation.
The prime minister said that the task the present government is undertaking
is huge, adding that emphasis will be placed on effective administration.
The debate will continue tomorrow and Saturday, with speeches by all
opposition party leaders and several deputies. The session will conclude
with a vote of confidence for the government on midnight Saturday.
Western European Union officials yesterday rejected recent statements by
WEU Parliamentary Assembly President Dudley Smith that Turkey should become
a full member of the organisation.
WEU sources said Mr. Smith's comments were "personal opinions" and that
Turkey does not meet the most basic preconditions for full membership.
While Turkey is a member of NATO, it is not a member of the European Union,
a prerequisite for full WEU membership. It is currently an associate member
of the WEU.
Mr. Smith, a British Conservative party deputy, whose tenure as president
ends in December has previously expressed pro-Turkish sentiments and
maintains a home in the Turkish-occupied territory of Cyprus.
Foreign Minister Theodoros Pangalos will make an official visit to
Belgrade, Zagreb and Sarajevo from Oct. 16-19.
Mr. Pangalos will be accompanied by a delegation.
Prehistoric settlement, graveyard discovered
An eighth millenium B.C. settlement and graveyard, touted as the most
significant pre-Cycladic find in the Aegean, have been discovered in the
Maroula region on the island of Kythnos.
According to the 21st Prehistoric and Classical Antiquities Department,
portions of a human skeleton were washed ashore last month at the site due
to beach erosion.
Five preneolithic graves were subsequently located in the same region along
with the foundations of cyclically designed residences adorned with slate
rock floors.
Remains of habitation during the same period, according to archaelogists,
have also been located at the Yioura site on the island of Alonnisos, in
the Sporades chain.
Papandreou inaugurates 'Greek Observatory' at London School of Economics
Alternate Foreign Minister George Papandreou yesterday inaugurated the
"Greek Observatory", the research arm of the new chair of Modern Greek
studies at the London School of Economics.
Speakers at yesterday's event stressed that the Observatory represents a
major step in expanding the school's European studies programme, aimed at
upgrading research and teaching on all aspects of modern Greece.
Mr. Papandreou said in statements that it was the government's policy to
support the creation of other such chairs of Greek studies abroad.
"The creation of the Greek Observatory is of special significance, first of
all, linking the Greek academic community in Britain with Greece, and
providing updating on important developments in the social sciences.
Secondly, contributing to a better kn owledge on the part of the British
public, academic community and politicians on the problems of the region
and Greek positions regarding the Balkans and the Mediterranean, and
thirdly, contributing to a cultural bridge between British and Greek
universities," he added.
The general secretariat of the National Statistical Service (ESY)
announced yesterday that the general wholesale price indicator for final
products increased by 0.2 per cent in August 1996, compared to July 1996,
against an increase of 0.4 per cent during the corresponding period in
1995.
The general indicator increased by 6.2 per cent in August 1996, compared to
the general indicator of 1995, against an increase of 6.6 per cent in
comparison to the same indicator in 1995.
Tunnel-drilling work on the Athens Metro will resume in a few days' time,
Environment, Town Planning and Public Works Minister Costas Laliotis
announced yesterday, following the settlement of a dispute between the
state and the consortium constructing the Athens Metro.
Mr. Laliotis told a press conference that his meeting with representatives
of the "Olympic Metro" consortium on Wednesday had discussed the problems
that had arisen and that the two parties had agreed to meet again in a
fortnight to evaluate progress.
He said the suspension of work at four stations would soon be lifted and
that he would speed up the process to solve technical problems plaguing
work at one of the main stations, on Ermou street.
The amicable agreement came after some tension between the state and the
consortium, with Mr. Laliotis reportedly considering rescinding the
contract with the consortium if problems were not ironed out.
Attiko Metro, which represents the Greek state in the 520-billion-drachma
project, issued an announcement last week saying that delays in the
execution of the project were due to Olympic Metro, a joint Greek, German
and French consortium.
New Hyatt casino on a winning streak in its first month
The newly opened Hyatt Regency casino in Thessaloniki posted a gross
turnover exceeding the two billion drachmas mark in September, its first
month of operation, company president Giorgos Galanakis said yesterday.
Specifically, he said total revenue reached 2.217 billion drachmas, an
average daily of 76.5 million, while average daily attendance was around 3,
600 - the highest in Europe.
Mr. Galanakis said the state would receive 30 per cent of gross revenues,
or about 650 million drachmas.
Greece's insurance market has decreased by 15 per cent over the past year
and, according to representatives of insurance firms, the drop is due to a
slowing in the rate of increase for personal insurance policies, which
cover about 50 per cent of the nation's insurance market.
The turnover in the sector amounted to 500 billion drachmas in 1995, while
the personal life insurance sector registered a 20 per cent decrease.
By contrast, the automobile insurance sector increased slightly, while
remaining policies remained stable.
The above figures was announced yesterday by the president of the Union of
Insurance Companies of Greece's International Relations Committee, Yiannis
Delentes, on the sidelines of the Federation of Insurance Unions of
European States' general assembly, which began in Thessaloniki yesterday.
Mr. Delentes said recent activity in the market is making insurance agents
sceptical, adding that insurance agents are concerned over a possible
abolition of the tax exemption for insurance premiums.
Development Minister Vasso Papandreou analysed the economic, diplomatic
and political targets of making Greece a transit centre for energy sources
transported between western Europe and the Balkans, Russia and Black Sea
regions.
She was speaking yesterday at the Balkan conference of the International
Federation of Energy and Chemical Industry Unions.
Ms Papandreou outlined the steps with which the government is approaching
this crucial target, namely, a Greek proposal to the Community for inter-
Balkan power networks and pipelines for the transport of petroleum and
natural gas.
In addition, other steps include the creation of an underwater cable
linking Greece with Italy; an institutional framework urging the Public
Power Corp. (DEH) to establish flexible subsidiaries operating in the
Balkans and eastern Europe; completion of a pipeline carrying natural gas
from Russia through Bulgaria to Greece with option to extend it to Albania
and linkage to Italy; promotion of the proposed Burgas-Alexandroupolis
petroleum pipeline as well as acceleration of programmes for utilising
renew able sources.
WEATHER
Partly cloudy with occasional rainfalls in most parts of the country with
temperatures ranging from 15-20C in Athens and 13-19C in Thessaloniki
FOREIGN EXCHANGE (Buying)
U.S. dlr 238.378 Can. dlr.176.437, Australian dlr. 187.929, Pound sterling
372.694, Irish punt 382.019, Cyprus pd 511.475, French franc 46.068, Swiss
franc 190.266 Belgian franc 7.560, German mark 155.734 Finnish mark 52.114,
Dutch guilder 138.835 Danish Kr. 40.654, Swedish Kr. 36.091, Norwegian Kr.
36.599, Austrian Sh. 22.142, Italian lira (100) 15.634 Yen (100) 213.895
Spanish Peseta 1.851, Portuguese Escudo 1.542.
(M.P.)
