Athens News Agency: News in English (PM), 97-06-18

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

NEWS IN ENGLISH

Athens, Greece, 18/06/1997 (ANA)

MAIN HEADLINES

• Tax scales may change - minister
• Premier praises new EU treaty
• Bulgaria joins Black Sea grouping
• Kranidiotis' Washington meetings cover Cyprus, CBMs in Aegean
• Athens condemns air violations
• Economic policy to remain unchanged
• Tsohatzopoulos calls for true convergence of EU economies
• Athens mayor to attend Moscow conference
• Gligorov praises Greece's role in the Balkans
• Greek athletes win more medals at Med Games
• Weather
• Foreign exchange

NEWS IN DETAIL

National Economy and Finance Minister Yiannos Papantoniou today left open the possibility of the government index-linking income tax scales to inflation, which has been one of the main demands of public sector employees.

Papantoniou added that any decisions would be taken at the end of the year when the 1998 state budget was being prepared, indicating that decisions would be shaped on the basis of the government's ongoing social dialogue with employers and employees.

Reviewing the course of the economy during the first five months of 1997, Papantoniou said it was ''moving steadily in the direction of more rapidly development, lower inflation and reduced public finance deficits''.

Presenting figures on the economy, Papantoniou said:

Premier praises new EU treaty

Prime Minister Costas Simitis today praised the new treaty hammered out by the 15 European Union leaders in a marathon session as having social sensitivity, ensuring the equal participation of the bloc's smaller countries, and for preserving a member state's right of veto when its vital interests are at stake.

On common foreign and security policies, Simitis told reporters in Amsterdam early this morning that the references concerning respect of the EU's integrity and external borders and on the development of a mutual policy of solidarity among the member states were also satisfactory.

He described as particularly positive the agreement reached that foreign policy decisions of strategic importance to the EU would be made unanimously, while a member state reserved the right to veto a common action if it felt its vital interests would be harmed.

He said the Intergovernmental Conference (IGC) decisions on EU institutional reform and common foreign and seccurity policies satisfied the Greek positions, while the completion of the IGC talks paved the way for EU enlargement towards the countries of central and eastern Europe and Cyprus.

Concerning institutional reform, Simitis said institutional balance had been preserved despite ''strong efforts'' to alter it, thus ensuring the equal participation of Greece and the other small, with respect to population, member countries, while the principle of each member state having at least one Commissioner in the European Commission had also been maintained.

He also hailed the introduction of regulations, in the new treaty, for the development of the Community's islands via EU structural policy as ''exceptionally positive'' for the Greek islands.

The fact that the new European Union treaty contains a reference to the external borders of the Community being identified with the external borders of its member-states is of ''enormous political significance'', acting government spokesman Yiannis Nikolaou said today.

Bulgaria joins Black Sea grouping

Bulgaria's accession to the Black Sea Economic Cooperation (BSEC) forum was unanimously approved today by the organisation's Parliamentary Assembly (PABSEC) on the first day of its 9th plenary which began in Athens seaside suburb of Vouliagmenis.

Also during today's sessions, the Georgian vice-president of the assembly asked Greece to undertake the necessary initiatives in order for the BSEC to acquire observer status at the European Union and the Organisation for Security and Cooperation in Europe (OSCE).

Declaring the sessions open, President Kostis Stephanopoulos underlined that the Black Sea had always been ''a vital crossroads between Asia and Europe'' and a meeting place of different cultures, religions and nationalities.

''It has always been a place of contrast but also of fruitful cooperation and productive activity,'' he said.

Stephanopoulos said the promotion of economic cooperation in the greater area of the Black Sea ''is an element for the progress of the countries of the region and for peace and security in a region which has from time to time suffered from great tension''.

The inauguration of the BSEC bank in Thessaloniki, he continued, will usher in a new important period of cooperation among the states of the region.

Noting that Greece was present in all areas of BSEC activity, Stephanopoulos said the country would continue its efforts ''with undiminished interest, since we are convinced that this cooperation, among other things, indeed contributes considerably to the construction of the new Europe''.

Kranidiotis' Washington meetings cover Cyprus, CBMs in Aegean

There has been no positive response from the Turkish side as yet on the extension of a two-month moratorium in the Aegean, it was revealed yesterday, following talks between Foreign Undersecretary Yiannos Kranidiotis and th e US Assistant Defence Secretary Jan Lodal.

Mr. Kranidiotis told a news conference that he had discussed NATO-proposed confidence-building measures in the Aegean and Greek-Turkish relations with Mr. Lodal, implying however, that there had been no further progress on the issue but that Athens was continuing the discussion in the framework of the NATO secretary-general's initiative.

After meeting with Richard Holbrooke, who was recently appointed as a US presidential envoy for Cyprus Mr. Kranidiotis told reporters that Mr. Holbrooke agreed that Greek-Turkish relations and the Cyprus issue could not be considered as a "package", as they involved different issues requiring different handling.

Both sides agreed that a Cyprus resolution would have a positive effect on Greek-Turkish relations.

Mr. Holbrooke, who negotiated the Bosnian peace accords, is expected to visit Athens, Nicosia and Ankara at the beginning of August for talks with the three governments on the future of negotiations regarding Cyprus, following face-to-face talks between Cypriot President Glafcos Clerides and Turkish Cypriot leader Rauf Denktash in New York from July 9-13.

Mr. Kranidiotis said he told Mr. Holbrooke the Greek government welcomed his appointment as an indication of the US interest in resolving the protracted problem, adding that for the US involvement to show a result pressure must be exerted on Turkey to retreat from its present stance.

Mr. Holbrooke will be assisted by the US charge d'affaires in Athens, Mr. Miller.

Athens condemns air violations

The government today condemned ongoing repeated violations of Cypriot airspace by Turkish warplanes.

''Every action is condemnable which does not contribute positively to dialogue between the two communities on Cyprus,'' acting government spokesman Yiannis Nikolaou said.

Economic policy to remain unchanged

The government reiterated today that it was not considering any change in its economic policy.

''Our economic policy remains unchanged and there will no deviation from what has already been announced,'' acting government spokesman Yiannis Nikolaou said.

The spokesman was replying to reporters' questions on the possibility of changes in the government's economic policy following the EU summit in Amsterdam.

Tsohatzopoulos calls for true convergence of EU economies

Greece and its European Union partners should formulate conditions for true convergence between European economies, National Defence Minister Akis Tsohatzopoulos said in an interview published yesterday in the Athens daily "Eleftherotypia".

"Those looking at development in the narrow, rationalistic sense of mathematical equations are out of touch with reality," the minister said, a few days before the opening of ruling PASOK's central committee meeting.

"They haven't realised that European public feeling is running high," said Mr. Tsohatzopoulos, who is also the vice-president of the European Socialist Party.

European socialists do not dispute convergence criteria or the need for a single European currency, he said, adding that coordination of economic policies on both a national and European level would lead to higher growth rates.

Referring to NATO's recent proposal for the establishment of two European headquarters, one in the north and the other in the south with four subheadquarters in Spain, Italy, Greece and Turkey Mr. Tsohatzopoulos said the proposal was supported by all NATO member states except Turkey, which claims that the number of NATO's Mediterranean subheadquarters should be reduced, while suggesting that Greece and Turkey share a common subheadquarters.

Stressing that growth was based on security, Mr. Tsohatzopoulos said "our goal is to create through a fresh cooperation between the private and public sector an industry for the manufacture of armaments and products for Greece in order to limit the flow of funds used for purchasing weapons systems (from abroad)."

Commenting on the possibility of a joint venture with Russia to manufacture weapons systems, including tanks and missiles, Mr. Tsohatzopoulos said the issue was under consideration and due to be finalised over the next few months.

Athens mayor to attend Moscow conference

Athens Mayor Dimitris Avramopoulos leaves today for Moscow to attend the fifth conference of the "world's largest cities."

Visiting Moscow at the invitation of his counterpart Yuri Louskov, Mr. Avramopoulos is expected to try to gain accession for Athens to the international network of the world's largest cities.

Gligorov praises Greece's role in the Balkans

The president of the Former Yugoslav Republic of Macedonia (FYROM), Kiro Gligorov, expressed his country's positive view on the role played by Greece in the Balkans to US President Bill Clinton, during his visit to the White House on Monday.

Leaving the Oval Office and replying to a question, Mr. Gligorov said he did not discuss the question of his country's name with President Clinton.

"It was not the object of our talks today. I briefed President Clinton on our views on the present policy followed by (Greece's) Prime Minister Mr. Simitis, and that we evaluate very positively this policy, particularly Greece's orientation to be a more important factor in this region compared to how it was until now," Mr. Gligorov said.

It is Mr. Gligorov's first visit to the United States as the president of FYROM.

Greek athletes win more medals at Med Games

Greek athletes won nine medals (two gold, five silver and two bronze) yesterday in the 13th Mediterranean Games being held in Bari, Italy. The gold medals were won in the women's triple jump event by Olga Vasdeki with 14 metres and 13 centimetres and by weightlifting champion Kahi Kahiasvili (he won a gold medal in the Atlanta Olympics) in the 99-kg category with 212.5 kg in jerk.

WEATHER

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(M.P.)

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