Athens News Agency: News in English, 07-03-10

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

CONTENTS

[01] PM Karamanlis on Lisbon strategy and Greek economy

[02] SYN hails demolition of wall in divided Nicosia

[03] 'We do not play with public finances'

[01] PM Karamanlis on Lisbon strategy and Greek economy

He also noted that the European economy's recent recovery was largely due to the reform efforts set in motion.

With regard to Greece, Karamanlis pointed to the strong growth it had enjoyed for several years while emphasising that his government had taken decisive steps to end "major uncertainties about the prospects of economic growth" that had existed in March 2004, when it had taken over power.

"We decided to put an end to the policies of the past and proceed with a different mix of economic policy. A mix based on fiscal discipline and transparency and on structural reforms. This policy is fully compatible with the principles we follow here, at the European Council, in recent years. I can say that our efforts are now being rewarded," the Greek premier said.

He pointed out that strong economic growth was continuing in Greece, while it was no longer based on state spending:

"Growth is now based on an increase in private investment and of exports, which have reached record levels, and on direct foreign investments that represent 2.2 pct of GDP. Unemployment has dropped by 3.0 percentage points in the past three years. We are creating the foundations for strong growth in the future and part of this effort is based on the fiscal adjustment we have achieved," the premier said.

Noting that the reform effort was ongoing and continuous, Karamanlis said that Greece's ailing social insurance system would be the next major reform effort after the next elections. In its first four-year term, the government had set a goal of dialogue in order to record the facts concerning this crucial issue, while the government emerging from the next elections must put forward a plan for reforming the social insurance system for the next generations, he added.

The premier additionally pointed to the marked reduction in Greece's public deficit, which fell from 7.8 pct of GDP to under 3 pct of GDP under New Democracy's government, noting that there were similar trends for public debt.

Asked whether Greece would exit the excessive deficit procedure, Karamanlis said the decision now rested with the European Commission and the European Council.

"We remain steadfast in our goals for fiscal reform, aiming to achieve balanced or surplus budgets by 2012," he added.

Regarding a proposal to reduce bureaucracy in the EU by 25 pct, Karamanlis said that Athens had been in favour:

"We did not refuse, we accepted and it is binding for us as for all the partners. We know that for us the effort will be greater because Greek public administration is in a much worse situation than the European average. I consider it the greatest challenge to press forward at an even faster pace," he said.

In response to other questions, the prime minister denied plans to offer pre-election handouts, saying that this would be counter to his "deepest political philosophy".

"The economy is doing better but needs even greater efforts to reach the point we want, to be a society that produces, exports, generates wealth that the government distributes more fairly to those in need," Karamanlis told reporters.

[02] SYN hails demolition of wall in divided Nicosia

President Papadopoulos' statement followed the start a few hours earlier of the dismantling of the National Guard wall in this commercial street in the walled city of Nicosia, the world's last divided capital.

"We hail the demolition of the wall in Ledra Street in Nicosia. This step by the government of the Republic of Cyprus constitutes a hopeful development, both on a symbolic and political level in the direction of the rapprochement of the Greek Cypriots and Turkish Cypriots and the resumption of the bi-communal talks under the auspices of the United Nations for a solution to the Cyprus issue. What is mainly called for is the end of the Turkish occupation, the demilitarisation and reunification of the island with the creation of a bi-communal-bi-zonal federation on the basis of the UN resolutions and the European acquis communautaire,? Trigazis said.

(ANA-MPA file photo of Panos Trigazis, head of the Foreign Policy Department of Synaspismos)

[03] 'We do not play with public finances'

He said that during the 1990s decade, "according to our predecessors (PASOK)," the deficit was many times below the three per cent limit.

"The difference with the past is due to the fact that we do not play with public finances. We do not offer grants with borrowed money. We do not change the figures when we do not like them, neither do we manufacture them when they do not exist. We tell the truth to our associates in Europe, we do not hide the truth from the Greek people. Our job is to correct the bad texts. Our job is to help the countryâs healthy forces to distinguish themselves and upon them to be built the economic growth of the next decade,? Bezas said.

(ANA-MPA file photo of Deputy Economy and Finance Minister Antonis Bezas)

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