EU assistance for SMEs announced
NEWS IN DETAIL
Greece confident of meeting Maastricht criteria
The European Union Council of National Economy Ministers (ECOFIN) convened
in Brussels yesterday to examine the course of European economiy issues
such as economic growth, Economic and Mone-tary Union and unemployment.
Greece was represented by National Economy Minister Yiannos Papantoniou.
National delegations, including Athens', stressed that the "15" should take
specific measures to strengthen employment through backing investment
initiatives by small- and medium-size enterprises; promotion of inter-
European networks and implementation of a more flexible monetary policy by
member-states.
Addressing the session, Mr. Papantoniou outlined the positive performance
of the Greek economy which, he said, was recognised by the European
Commission in its recent economic report.
He said that from 14.4 per cent in 1993 the Greek public deficit will
decrease to 4.2 per cent of GDP in 1997. Inflation from 12 per cent will
drop to 4.5 per cent at the end of the year, while the country's growth
rate, negative until recently, will re ach 3.3 per cent of GDP at the end
of the year, he noted.
Mr. Papantoniou said Greece expects to meet the terms and conditions set
out in the Maastricht Treaty in 1998 for participation in the single
currency, adding that in 1999 the country will claim its equal participation
in economic and monetary union.
Defence Minister discusses arms issues in Germany
National Defence Minister Akis Tsohatzopoulos met yesterday with his German
counterpart Volker Ruhe, with both stressing afterwards the good bilateral
relations enjoyed by Greece and Germany and cooperation between the two
countries in the military sector.
The two men agreed to begin negotiations on a memorandum of understanding
on armament issues to be signed within the year, concerning cooperation
between the two defence ministries and between Greek and German companies.
The German side appeared interested in participating in Greece's armaments
programme, particularly with regards the modernisation of a number of F-4
"Phantom" fighters by the DASA company and the provision of four submarines
from the Howald shipyards.
The Greek side is also interested in the purchase of a number of previous-
generation Leopard I tanks, which has ground to a halt as Bonn has imposed
an informal embargo on their sale in areas where tensions have allegedly
risen.
EU Commissioner Wulf-Mathies to begin official visit here today
European Union Commissioner Monika Wulf-Mathies begins a four-day visit to
Athens and Crete today, where she is expected to convey her satisfaction to
Athens over the course of implementation of the Delors II package.
Ms Wulf-Mathies will hold talks with Prime Minister Costas Simitis,
National Economy and Finance Minister Yiannos Papantoniou, Development
Minister Vasso Papandreou, Environment, Town Planning and Public Works
Minister Costas Laliotis and Transport and Communications Minister Haris
Kastanidis.
According to European Commission sources, she is expected to call on the
government to speed up its efforts to further improve awarding contracts in
the public works sector. The same sources said Ms Wulf-Mathies believes
that awarding terms should become more attractive for the private sector,
primarily in cases of joint funding for major projects.
Athens to host WEU security seminar
The Assembly of the Western European Union is holding a colloquy entitled
"Enlarged security: the security problems posed by the enlargement of NATO
and the European institutions" in Athens on March 11-12. The programme is
expected to include addresses by Foreign Minister Theodoros Pangalos,
Defence Minster Akis Tsohatzopoulos and presentations by representatives of
member states as well as of Central European countries.
Cyprus problem discussed in Brussels, Bonn
Foreign Undersecretary Yiannos Kranidiotis met yesterday with European
Commissioner responsible for foreign relations Hans van den Broek.
The discussion centred on finding a solution to the Cyprus problem and
various obstacles which must be overcome in order for this to be achieved
as soon as possible.
Both agreed that a joint effort is required on the part of the European
Union, the United States and the United Nations in order for a satisfactory
solution to be found.
In Bonn
Speaking at a joint press conference in Bonn with German Foreign Minister
Klaus Kinkel yesterday, newly sworn-in US Secretary of State Madeleine
Albright said "the Cyprus issue was discussed and we agreed to the need of
an overall solution."
Ms Albright also said she did not consider it appropriate to go into
details on the issue.
Talks between Ms Albright and Mr. Kinkel focused, among other subjects, on
the Cyprus issue, tensions in the southeastern Mediterranean and the role
played by Turkey.
Athens willing to discuss deployment of multinational peacekeeping force on Cyprus
The Greek government is in favour of the demilitarisation of Cyprus and
within this framework could listen to proposals such as the possibility of
stationing a multinational peacekeeping force on the divided island,
government spokesman Dimitris Reppas said yesterday.
Asked to comment on statements at the weekend by National Defence Minister
Akis Tsohatzopoulos concerning Greece's inalienable right to extend its
territorial waters from six to 12 miles, Mr. Reppas said that "this is the
steadfast position of the Greek government".
Greece: Ankara has no say in Cyprus' EU accession
Greece reiterated yesterday that Cyprus' accession to the European Union
did not depend on Turkey's will nor was it subject to a settlement of its
political problem.
"We have repeatedly underlined that Cyprus' accession to the EU, as this
stems from the Cyprus-EU agreement on March 6, does not depend on Turkey's
will nor is it subject to a settlement of the Cyprus issue," Foreign
Ministry spokesman Constantine Bikas said in an answer to earlier
statements by his Turkish counterpart Omer Akbel.
According to an ANA dispatch from Istanbul, Mr. Akbel said that Cyprus can
become an EU member only after a settlement has been found and when Turkey
also joins the Union.
"Turkey has an obligation, stemming from international law, to put an end
to its occupation of the island and react positively to proposals by the
Cyprus government. But this obligation certainly does not give Turkey the
right to impose its conditions on the EU and on Cyprus," Mr. Bikas
added.
Museums remain closed
Major museums in Athens and Thessaloniki continue to remain closed due to a
strike by culture ministry employees and antiquity sites' guards.
Representatives of the Federation of Culture Ministry Unions were informed
yesterday that an extrajudicial summons was expected to be delivered to its
offices later in the day, declaring the strike illegal and abusive.
Tourism exhibition in Moscow
A tourism delegation has arrived in Moscow to participate in a major
tourist exhibition being organised in the Russian capital from Feb. 18-
22.
Kavala Mayor Lefteris Athanasiadis said ``the target of Kavala`s presence
in this international tourist exhibition is arrival of a large number of
Russian tourists in Kavala and Thasos this summer``.
EBEA economic report notes bright spots in economy
The government's economic policy is headed in the right direction and a
firm improvement has been achieved in important indicators of the national
economy, according to the president of the Athens Chamber of Commerce and
Industry (EBEA) George Papathanasiou.
Presenting EBEA's six-month report on the Greek economy yesterday, Mr.
Papathanasiou said, however, that growth rates have not increased enough to
enable the country to participate immediately in the third phase of the
Economic and Monetary Union (EMU).
Mr. Papathanasiou said that in no way should the government bow to pressure
by various social groups for more benefits if it wants the country's
economic conditions to improve.
According to the report, the unemployment rate in Greece also shows a
better performance than the European Union average.
The report further stated that the Greek economy's greatest weakness lies
in containing public expenditures, restructuring public enterprises,
modernising public administration and the welfare state, privatisations as
well as delays in investments throu gh the Delors II programmes.
EU assistance for SMEs announced
Small and medium-size enterprises (SMEs) in Greece will receive 100 billion
drachmas of economic assistance from European Union funds up until the end
of 1999, National Economy Undersecretary Christos Pachtas announced
yesterday.
He added that the intermediaries which will administer the funds had
already been selected for the seven biggest geographical departments of the
country.
Within the framework of the Regional Operational Programme (PEP), SMEs
operating for at least three years will have the right to submit proposals.
In the case of Athens and Thessaloniki, they must employ between 5-30
persons and have recorded a turnover of at least 120 million drachmas in
one of the last three years.
In other regions of the country, the corresponding limits are 3-30
employees and 70 million drachmas.
Enterprises will receive grants equal to 50 per cent of the investment cost
for projects costing 5-60 million drachmas. Investments costing over 60
million drachmas will be accepted but the maximum grant will not exceed 30
million drachmas.
FAGE bond issue
Citibank has mediated the successful issuance of a US$120 million (31.5
billion drachmas) bonds loan for the giant Greece-based dairy products
producer FAGE, according to a bank announcement. The loan will have a 10-
year duration without an intermediate p ay off and a stable interest rate
of 9 per cent.
The bond issue in the US market is the first carried out by a wholly Greece-
based company and is the result of a collective effort by FAGE, Citibank
Greece and its international network.
Four people face trial over Motor Oil pollution
Four people were charged with causing extensive sea pollution as a result
of an oil spill at the Motor Oil installations in Corinth last August.
The 300-ton crude oil spill occurred after poor weather caused a breaking
in an off-shore transport pipe during off-loading of the tanker "Kriti
Sea".
The ship's captain and first officer, Iosif Rousopoulos and Vangelis
Domatas, respectively, the general director of Motor Oil, Costas Vasilakis,
and Motor Oil official Yiannis Thalassinos, are to appear in court
following a ruling issued by the Corinth Misdemeanours Court yesterday.
According to the ruling, the pollution was caused by a pipe's rupture after
the tanker moved eight metres from its original position as its mooring
ropes were loosened.
WEATHER
Locally cloudy with possible rain in most parts of the country, especially
in central east Greece, the Peloponnese, the Cyclades islands, Crete and
southeastern Aegean Sea, where gale force winds will prevail, but will
subside in the afternoon. Athens will be cold and overcast with temperatures
between 7-12C. Thessaloniki will be partly cloudy with moderate northeastern
winds and temperatures between 2-7C.
FOREIGN EXCHANGE
Monday's closing rates - buying US dlr. 262.949
Pound sterling 426.282 Cyprus pd 519.808
French franc 45.979 Swiss franc 178.064
German mark 155.179 Italian lira (100) 15.735
Yen (100) 211.881 Canadian dlr. 194.630
Australian dlr. 201.237 Irish Punt 416.382
Belgian franc 7.521 Finnish mark 52.449
Dutch guilder 138.245 Danish kr. 40.716
Swedish kr. 35.500 Norwegian kr. 39.041
Austrian sch. 22.056 Spanish peseta 1.835
Portuguese escudo 1.548
(C.E.)
