Athens News Agency: News in English, 05-12-27

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

CONTENTS

[01] Greece presents updated Stability and Growth Programme

[02] PM confers with interior minister

[03] 'Journey to Mount Athos' photo collection by Boissonas published

[04] Foreign minister holds reception for journalists covering ministry

[01] Greece presents updated Stability and Growth Programme

The programme envisages strong growth rates in the 2006-2008 period, with average growth rates of 3.9 percent annually. Strong growth will result from an increase in public investments in combination with higher private investments and a strong private consumption in the country.

Greece's Economy ministry expects corporate profits to grow further due to a 10 percentage point cut of tax factors in the 2005-2007 period (to be introduced in three stages).

Profitability also will be supported by the introduction of a new investment law aimed to expand business and investment activity in the country. Credit expansion towards the private sector (households and enterprises) is expected to continue growing at high rates without raising the risk for the country's financial sector.

The programme envisages that a strong and dynamic growth would be supported by structural reforms aimed to boost productivity and employment. Reforms are expected to contributed in accelerating GDP growth rates and to support growth in regional Greece.

Employment is forecast to increase by an average 1.6 percent annually over the 2006-08 period, with unemployment rate expected to drop from 10.4 percent of the workforce in 2005, to 9.8 pct in 2006, 8.9 pct in 2007 and 8.0 pct in 2008. The updated stability programme also envisages a slowdown in the inflation rate from 2006 onwards.

The programme projects that Greece's fiscal deficit will drop below 3.0 pct of GDP by the end of 2006. The government's 2006 budget plan envisages a general government deficit at 2.6 pct of GDP this year with fiscal adjustment based on reducing spending and boosting revenues.

General government spending are forecast to drop to 44.7 pct in 2006 from 48.2 pct in 2004, while the fiscal deficit is projected to fall to 1.7 pct of the country's GDP by 2008.

The general government's debt is expected to ease from 107.9 pct of GDP this year to 104.8 pct in 2006, 101.1 pct in 2007 and 96.8 pct in 2008.

The government's updated stability programme also aims to ensure the long-term viability of the pension system and of the country's fiscal condition. The programme envisages the introduction of a new draft law on state procurement aimed to cut costs by 15 pct.

[02] PM confers with interior minister

Pavlopoulos told reporters after the meeting that he and the premier had discussed the procedures for the Constitutional revision, adding that there would be more meetings on the issue.

[03] 'Journey to Mount Athos' photo collection by Boissonas published

The publication was produced and published jointly by Agioreitiki Estia, the Thessaloniki Photography Museum and the Organisation for the Promotion of Greek Culture.

In an address presented the new book, Karamanlis stressed that Boissonas - as well as a famous philhellene - was a pioneer of efforts to perfect the art of photography in the early 20th century and that the photographs combined historic with pure artistic value.

According to the premier, the collection also capture the essence of Orthodox monasticism and made accessible to the broad public one of the most important aspects of Greece's living traditions.

[04] Foreign minister holds reception for journalists covering ministry

During informal talks with the journalists that attended, the minister referred to all the major foreign policy issues that concern Greece, either directly or indirectly, including the country's relations with Turkey and developments in Kosovo.

With respect to the former, Molyviatis stressed that the "casus belli" or 'cause of war' threat against Greece in the event that it decided to extend its territorial waters to the international standards of 12 nautical miles was an anachronism that was not in line with the principles of the European Union and the ways of doing things within the European Community.

Regarding Kosovo, the minister underlined that any decision about its future status should not lead to the destabilisation of the surrounding region.

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