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

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

CONTENTS

[01] PM Karamanlis meets with visiting Russian FM Lavrov, Greek FM Molyviatis interview with Ria-Novosti news agency

[02] FinMin optimistic on attainment of econ targets

[03] Athens mayor in drive to save strays

[01] PM Karamanlis meets with visiting Russian FM Lavrov, Greek FM Molyviatis interview with Ria-Novosti news agency

No statements were made after the noon meeting, which was also attended by Greece's foreign minister Petros Molyviatis.

Meanwhile, Molyviatis gave an interview to the Russian Ria-Novosti news agency ahead of Monday's visit to Athens by his Russian counterpart Lavrov.

Molyviatis said that during Lavrov's visit they will have the opportunity of "making a review of our bilateral relations, our excellent, in any case, bilateral relations, always in view of their further strengthening and deepening. We will also be preoccupied, of course, with issues of wider interest as well, such as developments in the Balkans, relations between Russia and the European Union, the Middle East question and our cooperation in the Black Sea region. It is logical, anyway, that developments on the issue of Cyprus and prospects on the issue of the future status quo of Kosovo will be issues to which we will devote a considerable part of our discussions, since the particular interest of our two countries in these issues is known."

Referring to the issue of Kosovo, Molyviatis said "the positions of Greece are already known. It is stressed that whatever solution must constitute the product of negotiating and not imposing, ruling out the use of force and unilateral actions. The creation through dialogue of a democratic, multinational society is a substantive precondition for the future of Kosovo."

On the question of Iran, the foreign minister said that Greece believes that the diplomatic path is a basic priority for achieving a mutually acceptable solution and it is expedient to support every initiative in this direction.

As regards the energy sector, Molyviatis said that the construction of the Burgas-Alexandroupoli oil pipeline is a project of particular significance for all the sides participating in it. The strong will of the two countries for its implementation was reconfirmed with the Protocol of the 5th Joint Interministerial Committee held in Moscow on September 27-30, 2005. At the same time, in the framework of Greek-Russian energy dialogue, the particular interest presented by bilateral cooperation in the sectors of natural gas and electric power is worth stressing."

Caption: Greek and Russian foreign ministers Petros Molyviatis and Sergei Lavrov during Molyviatis' visit to Russia last July. (ANA/A. Beltes)

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[02] FinMin optimistic on attainment of econ targets

The government intends to initiate a debate in parliament on reform of the social insurance sector, national economy and finance minister George Alogoskoufis said Monday, addressing an event organised by the Constantine Karamanlis Institute of Democracy at a central Athens hotel.

According to Alogoskoufis, the social insurance issue was a "time-bomb", while the system's actuarial deficit was estimated at 200 percent of GDP.

The problem, he explained, was that society would be called on to pay the pensions, and cited a study according to which in the year 2050 expenditure for pensions would double to 25 percent of GDP from the present 12.5 percent, requiring the contribution from the budget to triple to 15 percent from 5 percent today.

Given those developments, the social insurance issue was a major problem and a responsible attitude was required on all sides in order to resolve it, Alogoskoufis said, adding that the government has committed itself to advance dialogue on the issue. He also noted that his ministry will finance a commonly acceptable study on the social insurance problem.

Alogoskoufis said that the Greek economy was facing several challenges, such as the high public debt, the deficit, but also the rigidity caused by the over-inflated public sector.

Between 1993 and 2004, the number of civil servants jumped by 25 percent, or 120,000 persons, but without a parallel reduction in the unemployment rate, he said, adding that the economic policy of the past had proved ineffective and inefficient.

The minister also spoke of mismanagement in the public utilities and organisations (DEKO), and, outlining the targets of the present government's economic policy, said that the conditions were now being created for boosting entrepreneurship and extroversion of the economy.

He further noted the government's initiatives in such areas as promoting collaborations between the public and private sectors, the new investments law, and the reduction of taxation.

Alogoskoufis described tax-evasion as a large wound of the past, adding that the government's efforts had started to yield, with tax revenues marking a 17.8 percent rise in January 2006. He also said that taxation on physical entities would be reduced in 2007.

The minister severely criticised the stance of the main opposition party (PASOK), noting that the new investment law had been voted against by that party, and adding that there was an inconsistency between its words and actions, whereas the greatest possible consensus was required.

On collaborations between public and private sector, Alogoskoufis said that a special Secretariat has been set up to accept relevant proposals, adding that a proposal has already been submitted by the Organisation for School Buildings (OSK). Even here, he added, the main opposition party had displayed pettiness, noting that main opposition (PASOK) leader George Papandreou had called, in parliament, the law on Public and Private Sector Collaborations a "suit for collusion".

Turning to the government's initiatives for growth of the economy, Alogoskoufis cited the new generation of denationalisations, the new DEKO operational framework, better exploitation of the EU's Third Community Support Framework (CSF), and confrontation of the banks' social insurance problem, among others.

He explained that the banking system continued to have large diversions in interest rates, and described the system as the "traffic jam" of the economy, stressing that the cost of loans needed to be reduced.

The minister further referred to the forging of a digital strategy for the 2006-2013 period, the upgrading of the Exports Promotion Organisation and a new export policy, noting that the next step would be the restructuring of the Hellenic Centre for Investment (ELKE).

Today, Alogoskoufis said, employment was increasing, unemployment was being reduced, exports were being boosted, as was tourism, while the Greek economy's extroversion was also being strengthened, and expressed his conviction that the government's targets for further improvement of the economy will be achieved.

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[03] Athens mayor in drive to save strays

In a public information session for adults and children, Bakoyianni outlined the plight of strays and the need for adoption, also publicising action the municipality has taken.

"For the last two years, the municipality has followed a very concrete policy of protecting strays, sensitizing the public, and conducting an adoption programme, which is going well," Bakoyianni told the event.

"An animal is not a doll. It has its own life, and it is a pity to take one to give to our children only to throw it out on the streets a few months later when it has grown," she underlined.

The mayor also distributed free poop-scoops and disposal bags in a bid to encourage dog-owners to keep streets and parks clean; and welcomed valuable work performed by volunteers for the city's community of strays.

ANA-MPA Copyright © 2004-2005 All rights reserved.

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