Athens News Agency: News in English, 05-06-02

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

CONTENTS

[01] Results of French and Dutch European constitution referendums 'very important event', FM says

[02] Gov't determined to proceed with shake-up of public sector, PM says

[01] Results of French and Dutch European constitution referendums 'very important event', FM says

The foreign minister then referred to the procedure already anticipated by the European Constitution, meaning the completion of the ratification process by autumn 2006 when the European Council will examine the situation shaped and will decide on the next steps to be taken.

Commenting on repercussions on the EU by the negative results of the referendums in France and the Netherlands, the foreign minister reminded that during its long course Europe did not always forge ahead and that during the course of European construction "sometimes there was progress and sometimes stagnation as well as retrogression".

Molyviatis noted that Europe handled all this with success, stressing that the rejection of the Constitutional Treaty (in the two referendums) does not mean a rejection of Europe nor even of the course of European unification.

He clarified that he was not against the holding of referendums which is a democratic process, but pointed out that the Parliamentary process is equally democratic.

Replying to a question on the possible repercussions of the referendums on the process of EU enlargement, Molyviatis said this process must be continued as scheduled, while speaking of Turkey in particular he reminded that its accession course is described in the decisions of the European Council of December 17, 2004, and stressed that "Turkey's accession negotiations will begin on October 3."

On another question regarding the rekindling of discussions on enacting a special relations status between the EU and Turkey, the minister underlined that "no issue has arisen of amending the EU's position on Turkey's course to Europe" and that, in any case, the special relations issue is also referred to in the conclusions reached on December 17".

"On the occasion, I wish to repeat our position that Turkey, provided it fulfills the terms and preconditions set for her, must become a full member of the EU," the foreign minister said.

Regarding repercussions which might arise for the issue of Cyprus if problems arise for Turkey's European course, Molyviatis said the two issues are not linked and reiterated the Greek position in favour of a solution to the Cyprus issue based on the Annan plan, but also on the acquis communautaire as well.

[02] Gov't determined to proceed with shake-up of public sector, PM says

Karamanlis stressed that the government was prepared to make radical changes and engage in clashes toward this end, noting that this was the only way to overcome the critical economic state and huge deficits inherited from its predecessors.

The prime minister said that restructuring and, essentially, refounding the state along new lines was a key strategic choice and major priority of the new governance, seeking to effect the transition to a truly modern and effective state that was just, transparent and reliable and able to support and motivate the Greek economy and markets.

He noted that systematic dialogue in the broader public sector had been underway during the past months so as to ensure that the structural reforms had the widest possible acceptance, citing as an example the recent deal struck between OTE management and staff for reducing the number of people on the state telecom's pay-roll.

The premier stressed, however, that where such consensus could not be achieved, the government was obliged to go ahead with the changes regardless, showing wisdom, moderation and social sensitivity, on the one hand, but also the bold, decisive realism demanded by the times, on the other.

Karamanlis said that the envisioned changes would benefit the whole of society and tax-payers, not just a privileged few.

He particularly stressed the need for reforms in state-controlled banks in order to make them more competitive, underlining that the country could not continually postpone decisions for changes that everyone agreed had to be made, shifting the burden onto future generations.

The prime minister emphasised that the changes sought to drastically reduce the public deficit and create a competitive economy with vibrant growth, while stressing that they were not driven by dogma or ideology but by realism and common sense.

According to Karamanlis, a start toward the founding of a new modern state had already been made with the introduction of laws that simplified bureaucratic procedures and a measure that made the state liable to compensate citizens for failure to promptly complete transactions, as well as the conversion of Citizen Service Centres to complete transactions centres.

The public sector was presently bloated, wasteful, unproductive and bureaucratic, acting to enlarge deficits, add new tax burdens, obstruct economic growth and operating as a brake on the Greek enterprise, the premier said.

"Our vision for the state is clearcut: it should have a smaller presence in the economy and be more effective in its social intervention," he said.

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