Athens News Agency: News in English, 08-01-05

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

CONTENTS

[01] Papandreou criticises government in interview

[02] KKE leader on Middle East developments

[03] FinMin optimistic over economic growth

[01] Papandreou criticises government in interview

"The government is functioning as the servant of the few and powerful, it is settling interests and producing new scandals continuously," the PASOK leader said.

Papandreou further mentioned that the prime minister is part of the system of corruption, while calling on the parties of the Left to listen to the real problems of the Greek people who "want solutions and results."

Asked why he is attacking Prime Minister Costas Karamanlis personally, Papandreou said that he is trying to highlight the prime minister's responsibilities, whom he accused of presiding over and managing the system.

"He is heading a government that the only thing that it has done is a sackful of scandals, a deadlocked economy and an impassive Greece in the face of provocations that are unacceptable for our national interests," Papandreou added.

CAPTION: ANA-MPA file photo of PASOK party leader George Papandreou.

[02] KKE leader on Middle East developments

Papariga further said that the new element is that competition that had always existed between the United States, France, Germany and Britain has now been widened since these powers now consider Russia, China and India as being competitors.

She added that their competition is expanding all over Southeastern Asia continuously, it is becoming tense and is taking on the character of war, coup d'etats and assassinations.

Referring to the United States in particular, Papariga pointed out that they are having a tough time in Iraq and Lebanon, but "they have offset difficulties in the region by promoting their positions in the Balkans," adding that the military presence of the United States and of NATO has increased greatly with troops and bases in all Balkan countries.

CAPTION: ANA-MPA file photo of KKE Secretary General Aleka Papariga.

[03] FinMin optimistic over economic growth

The minister stressed at this point that what is important is that salary increases that will be scheduled in the framework of the new collective labour agreement between the General Confederation of Workers of Greece (GSEE) and the employers unions will lead to an improvement in income and not to a vicious circle of inflation since "it is in nobody's interests for us to proceed with excessive increases that will refuel inflation that the economy cannot stand."

Referring to the issue of privatisations, Alogoskoufis said that "the government's will for privatisation in infrastructures (ports and airports) and network corporations is clear."

Commenting on the state budget in an international environment of strong fluctuations, the minister said that international uncertainties are incorporated in planning and stressed that "the greatest risk we are facing is the turning of certain circumstantial international price increases into permanent inflation and how we must face it is not an issue for the government alone but for all the social partners as well."

Lastly, focusing on a possible increase in Value Added Tax (VAT), Alogoskoufis said that it is a measure that might be necessary after 2008 to annul the deficit, adding that "of course, I would like to hope that it will not be necessary."

CAPTION: ANA-MPA file photo of Finance and Economy Minister George Alogoskoufis.

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