Athens News Agency: News in English, 05-10-07

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

CONTENTS

[01] Prime Minister outlines Greek economy achievements at dinner for ECB's executive board

[02] Deputy FinMin Regouzas resigns

[03] Papandreou on Corfu visit

[04] Monastiraki-Aegaleo Metro line

[05] Quadripartite meeting in Athens on illegal immigration, drugs, organised crime

[01] Prime Minister outlines Greek economy achievements at dinner for ECB's executive board

The ECB's executives held a meeting in Athens for the first time ever earlier in the day.

In an address, the prime minister said that the economic and monetary union constituted the "most advanced pylon of the common European edifice". "The introduction of the euro and the establishment of the European Central Bank is one of the most important landmarks in the course towards European integration," he added.

"It was the initial move in a comprehensive plan, a plan which had been worked out and is now being implemented with the aim of making European economy capable of meeting the global changes and challenges...The globalisation of markets and the ever increasing international competition proved that the plan was, and is, not only feasible but also absolutely necessary, in all its extend, regarding both monetary stability and fiscal reform as well as structural changes," Karamanlis said.

Karamanlis said that the EU's monetary unification, the creation of a large common market and the establishment of a single currency entailed substantial benefits for the member countries of the Euro-zone. "The economies of our countries were relieved of the cost entailed by the 12 different currencies. Cross-border trade, commercial transactions and tourism movement were facilitated to a large degree. The medium-term and long-term interest rates were reduced and have been maintained at low levels, which significantly contributed to investments, growth, reduction of the cost of servicing the public debt. Significant stability was achieved in prices, as inflation in the Euro-zone, despite the unprecedented skyrocketing of international oil prices, is at a historic low. A more stable and efficient economic environment was created," he said.

The prime minister also referred at length to the impact of the EU's economic and monetary union (EMU) on Greece and the achievements of the Greek government in the sector of economy in the past 18 months.

"The monetary stability, but also the low interest rates of the euro, gave a substantial boost to private consumption and facilitated the servicing of the public debt," Karamanlis said, stressing, however, that the postponements and particularly the lack of reforms in the past had left intense marks on the operation of the State and the economy, but adding that the new government, that of his ruling New Democracy party (ND), with a sense of responsibility and respect to the Stability and Growth Pact, immediately pinpointed the chronic problems of the past and was developing effective policies to tackle them.

He noted that his government was applying a policy of mild fiscal adjustment so as to reduce the deficit to below the 3 percentage point mark by end-2006, was formulating a new developmental model based on encouraging healthy entrepreneurship, cooperation between the public and private sectors, constant improvement of quality, productivity and competitiveness, exploitation of the new advancements, technology, research and innovation, and economic outwardness.

The government was also proceeding, with determination and a sense of social responsibility, in reforms that have been necessary for many years, in order to render the Greek economy more productive, more competitive, and more out-reaching, he said.

It had further reduced the corporate tax brackets and simplified taxation procedures, introduced increased investment incentives and a uniform legal framework for collaboration between the public and private sectors, advanced reforms in the banking sector to make it more efficient and more competitive, reinforced flexibility in the labour market, limited and was continuing to reduce bureacracy with respect to the establishment of new enterprises, was proceed with new denationalisations and liberalisation of the energy market, and was applying policies for the gradual reduction of the country's oil dependence, for conservation of energy and for exploitation of renewable energy sources, the prime minister explained.

Karamanlis stressed that the investment environment in Greece had improved over the past 18 months and continued to improve consistently; that Greece had achieved a substantial fiscal adjustment in an environment of high domestic growth, which was expected to accelerate further in the immediate future; the public debt was de-escalating at a faster rate; exports and tourism traffic to Greece were increasing; and unemployment was presenting encouraging signs of reduction.

The country, the premier said, was moving decisively towards more efficient and speedier exploitation of its participation in the EMU. It was creating a new developmental environment that was more attractive for investments and friendly to business concerns. It was also playing a decisive role in the developmental efforts in SE Europe, and utilising its geopolitical position and its membership in all the major international financial and political organisations with the aim of strengthening cooperation, growth and progress throughout the wider region.

Greece today was the most appropriate location for the headquarters and research centes of major European enterprises penetrating the neighbouring countries. It was the gateway to to Europe for Asia, the Middle East, and the eastern Mediterranean. It ws the only EU and EMU member country in a regin of substantial developmental prospects. Greece was gradually developing into an international energy hub, which reinforced not only the developmental prospects but also cooperation, stability and peace in the entire region, Karamanlis added.

[02] Deputy FinMin Regouzas resigns

The resignation was accepted.

Regouzas' letter of resignation was due to be made public later in the day.

Regouzas' replacement would be announced within the next few days, according to reliable sources.

An announcement issued later by Regouzas said that "following the constant and unjust attacks I have been subjected to recently, I have decided to resign from the position of deputy minister of national economy and finance in order to seek my vindication through the justice system".

"This action has only one purpose, to bring out the truth, without the obligations entailed by the post I hold today. The truth is one. The interests and their servants have been inconvenienced by the war I have waged. The truth will shine through Justice," the terse statement concluded.

[03] Papandreou on Corfu visit

Arriving on the Ionian island of Corfu with PASOK MP for the constituency Angela Gerekou, Papandreou stressed that region's like Corfu could use tourism development to find "new roads in a very competitive international scene".

PASOK's leader also met Corfu Prefect George Maheimaris to discuss the island's problems.

[04] Monastiraki-Aegaleo Metro line

Speaking to reporters, Souflias said the project, worth 600 million euros, would service 80,000 passengers daily and stressed that the trip would last six minutes.

The Greek minister said the Athens metro service would be extended from Aegaleo to Chaidari and to Piraeus.

Souflias defended an international tender for a project to build part of a national road network in Maliakos and said the ministry awarded the project to the best bidder.

[05] Quadripartite meeting in Athens on illegal immigration, drugs, organised crime

Interior ministers Mostafa Pur-Mohammadi of Iran, Aftab Ahmed Khan Sherpao of Pakistan and Abdulkadir Aksu of Turkey, and Voulgarakis, will be meeting in the framework of cooperation on stamping out illegal immigratin, drug trafficking and organised crime.

The meeting, which opens Monday at 10:00 a.m. at the public order ministry, comes as a follow-up to Voulgarakis' official visit to Pakistan in May 2005, where the idea of holding the quadri-partite conference was first discussed. A bilateral cooperation agreement between Greece and Pakistan was signed during the visit, pertaining to icombatting terrorism, drug trafficking, illegal immigratin and organised crime.

In Athens, the ministers will discuss the development of effective strategies for joint confrontation of illegal immigration, particularly given that Greece, due to its geographical position, is an important gateway to the European Union, and also strengthening cooperation in the fight against drug trafficking and organised crime in general.

The visiting ministers, accompanied by Voulgarakis, will also call on President of the Republic Karolos Papoulias and foreign minister Petros Molyviatis on Monday.

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