Athens News Agency: News in English, 05-12-13

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

CONTENTS

[01] KYSEA council agrees to deal for 30 F-16 aircraft from the US

[02] PASOK: Public justified in reactions against govt

[01] KYSEA council agrees to deal for 30 F-16 aircraft from the US

The deal, which also provides for offset benefits on an operational level that include contracts for the domestic defence industry, was unanimously approved during a meeting chaired by Prime Minister Costas Karamanlis.

Defence Minister Spilios Spiliotopoulos said that the total cost of the programme will come to â¬1.625 billion and also cover support needs of 60 aircraft of the same type purchased under a previous programme under a contract signed in 2000.

The minister stressed, meanwhile, that the necessary bank guarantees had been obtained for the first time.

KYSEA's decision on Tuesday ensured the absence of middlemen from the specific contract and reaffirmed the government's commitment to transparency in armed forces' procurements, he added, while noting that the additional aircraft would preserve the balance of forces in the region.

Breaking down the cost of the programme, Spiliotopoulos said that â¬1.1 billion represented the cost of the 30 aircraft, while the cost of supporting these and the other 60 aircraft purchased under the previous programme would come to â¬525 million.

The new aircraft are due to be delivered in 2009 and will immediately enter full operational use and be equipped with a self-protection system.

Spiliotopoulos said that the cost per aircraft under the current programme was â¬36.7 million, whereas the cost per aircraft in updated prices under the previous programme was â¬41.4 million.

Additional offset benefits came to 132 pct, compared with 120 pct under the previous programme and would benefit the Greek defence industry, particulary the Hellenic Aerospace Industry (EAB), he said.

The minister also noted that the support programme included spare parts and consumables on each aircraft, which will increase their availability and that a downpayment for the order was due to be paid as soon as the contract was signed.

According to alternate government spokesman Evangelos Antonaros, meanwhile, Greece would not be activating an option to purchase an additional 10 aircraft of the same type that was originally included in the deal.

In response to questions, meanwhile, he told reporters that payments for the aircraft will be recorded in the budget as they occurred.

The spokesman also claimed that Greece was saving a further â¬118 million by promptly placing the order for the aircraft before the production line for the specific model was closed.

[02] PASOK: Public justified in reactions against govt

According to Papandreou, "government policy negatively affects Greek househoulds, small and medium-sized businesses, farmers, workers, the economy and the country itself."

Further, trade unions are protesting the measures taken by the administration of Prime Minister Costas Karamanlis because "they create a sense of insecurity, a lack of potential and vision and a lack of transparency in government decision-making."

PASOK, he said, will not allow Greece to reach an impasse.

"We are and we will continue to be by the side of the working people," he said.

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