Athens News Agency: News in English (AM), 98-05-08

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

NEWS IN ENGLISH

Athens, Greece, 08/05/1998 (ANA)

MAIN HEADLINES

• Simitis reiterates Greece's commitment to enter EMU in 2002
• Premier rules out early elections
• US satisfied with Athens' response on PKK office
• Simitis: Ankara not in a position to blackmail Cyprus' EU accession
• Spanish royal couple in Athens at the end of the month
• Karamanlis calls exclusion from EMU a dramatic loss
• Rhodes braces for tight security ahead of WEU summit
• Albanian premier calls for peaceful solution for Kosovo
• Better law enforcement between Greece, Albania discussed
• Greek MPs call for end to Iraqi sanctions
• Finnish, Greek ties in good shape
• ND MPs support links between church, state
• Workers to stage nationwide strike in late May
• Greek stocks take battering in profit-taking
• Greek bank workers to hold nationwide strike Monday
• Weather
• Foreign exchange

NEWS IN DETAIL

Prime Minister Costas Simitis called for greater public awareness of the economic priorities dictated by the course of convergence towards Economic and Monetary Union (EMU), stressing that the effort required the broadest popular support, but did not nece ssarily imply a deterioration in social welfare.

"The great challenge for PASOK, as a socialist party, is to walk the thorny road of convergence without relegating to second place the weakest strata of society," he told a press briefing on the outcome of last weekend's EU summit, that allowed 11 member-states, excluding Greece, to launch EMU on Jan. 1, 1999.

Defending his government's policy, he said: "Our policy was, and is, non- negotiable. It has the support of the vast majority of the public and of the (ruling) PASOK party."

The EU, he said, welcomed Greece's target of joining the third phase of EMU by Jan. 1, 2001, saying the economy had made substantial progress in meeting convergence criteria.

Greece would join the 15-nation bloc's single currency in 2002, he added.

Premier rules out early elections

Mr. Simitis again ruled out early general elections, saying the government wanted to complete its programme by 2000 when elections are due.

"Rumours (of early elections) overlook this key point. The government is not here to simply wield power, but to carry out a specific mandate," he said.

The prime minister rejected criticism expressed this week by main opposition New Democracy (ND) leader Costas Karamanlis, namely, that Greece's delayed entry into EMU had relegated the country to a second-class status.

A fall in the ruling party's popularity in recent opinion polls was due to a combination of circumstances, but the polls all showed that the public wanted Greece to take part in Europe, Mr. Simitis said.

US satisfied with Athens' response on PKK office

US State Department spokesman Jim Foley yesterday expressed his government's satisfaction over Greece's stance on the issue of reports citing the operation of a PKK office in Athens.

He said "the Greek foreign ministry briefed our embassy in Athens that there never was, there is not, nor will there ever exist a PKK office in Greece....we welcome this commitment, which is in line with Greece's international commitments for countering terrorism."

"Washington, if it really wants to play the role of third party, is not entitled to cover up for the well-known expediencies of the Turkish side," Greek Parliament President Apostolos Kaklamanis said later.

Simitis: Ankara not in a position to blackmail Cyprus' EU accession

Turkey is not in a position to blackmail Cyprus' accession to the European Union, Prime Minister Costas Simitis stressed yesterday, pointing out that membership talks will continue.

"Turkey must realise that it cannot blackmail the accession of Cyprus' procedure independent from a solution of the political problem of Cyprus", Mr. Simitis told a press conference.

"Decisions concerning accession procedures were taken in Luxembourg in December 1997", he said, adding that at the time many asserted that talks would not start last March because of Turkish objections.

"Still, Cyprus accession talks began and they will continue," he stressed.

Spanish royal couple in Athens at the end of the month

King Juan Carlos of Spain and Queen Sophia will pay an official visit to Greece from May 25-29, according to an announcement by the presidency of the republic yesterday.

The Spanish royal couple will visit Greece at the invitation of President Kostis Stephanopoulos. A similar announcement was made by the Spanish foreign ministry.

According to a dispatch from Madrid by AFP and DPA, both Spanish and Greek authorities are attaching importance to the visit, which will include Madrid's Foreign Minister Abel Matutes, Spanish diplomatic sources said.

"Since it is the first official visit, it is being prepared with the greatest care by both sides," the sources said. The Spanish royal couple will stay in Athens for two days and will meet President Stephanopoulos.

Karamanlis calls exclusion from EMU a dramatic loss

Main opposition New Democracy leader Costas Karamanlis said the decision taken at the recent Brussels summit on the exclusion of Greece from the first phase of Economic and Monetary Union (EMU) is a dramatic development and a landmark in the long decline in which the country is finding itself.

Addressing his party's Parliamentary group yesterday, Mr. Karamanlis said that Greece sustained a national degradation and depreciation 18 years after its equal accession to the European Union. He said that the country's accession to EMU is the most important national target, adding that there are considerable consequences from staying outside the EMU which are in danger of becoming incalculable at economic, political and national level.

Mr. Karamanlis said that the drachma was in danger of sustaining new pressures and a new depreciation is possible and at the same time there is the danger of interest rates increasing.

Mr. Karamanlis appeared certain that his party will win the next general elections, stressing that it must receive a positive vote. He said that "we must not achieve victory solely through the increasing displeasure of groups of citizens who will throw an incompetent government into a trash can, because the parameter of faith which is the fuel which will power Greece into the 21st century is of great importance.

Rhodes braces for tight security ahead of WEU summit

Greek authorities threw a tight security cordon on the Rhodes Palace hotel complex yesterday ahead of the Western European Union summit meeting of 54 foreign and defence ministers beginning on the Dodecanese island on Monday.

Four hundred and fifty police officers will be flown in from Athens for the summit, while frogmen will patrol the waters close to where the complex is located.

More than 600 officials are expected for the summit, as well as a number of Greek and foreign journalists. First to arrive for the summit will be NATO Secretary-General Javier Solana, who arrives this morning.

Albanian premier calls for peaceful solution for Kosovo

Albanian Prime Minister Fatos Nano last night called for a peaceful solution to the Kosovo problem, shortly after arriving in Thessaloniki.

He arrived in the city yesterday afternoon, invited by the Federation of Northern Greek Industries (SBBE), to address Greek businesspeople this evening on the issue of investment opportunities in his country.

Mr. Nano noted his belief that "the two sides will proceed to a courageous dialogue, which will offer long-term solutions."

Albania, he said, has told "both sides, Belgrade, which continues to strike at unarmed civilians, and to representatives of the Albanian community who do not react in the same manner, that Albania is a member of the international community which exercis es pressures and offers solutions for the peaceful settlement of historic differences."

Mr. Nano said that he was ready to meet with Yugoslav President Slobodan Milosevic if the latter "takes off his military uniform."

Better law enforcement between Greece, Albania discussed

Public Order Minister George Romeos warned yesterday that if Athens and Tirana failed to take appropriate measures to stem the influx of illegal immigrants into Greece, the situation would lead to serious domestic problems in both countries.

"Greece cannot endure any more economic refugees," Mr. Romeos said after meeting his new Albanian counterpart Perikli Teta in Athens.

The meeting focused on relations between the two governments and on developing "to the maximum" practical cooperation between the two countries' police forces.

It was decided to exchange information and appoint liaison officers in order to improve coordination between the two police forces.

Greek MPs call for end to Iraqi sanctions

Three Greek Members of Parliament said yesterday they would begin a campaign calling for the lifting of eight-year-long international sanctions on Iraq, on their return from a visit to the country.

Ruling socialist MPs Paraskevas Paraskevopoulos and George Katsimbardis and Coalition of the Left and Progress deputy Spyros Danellis said the Iraqi people were suffering under the embargo and that they would begin a fund- raising campaign to buy medical supplies.

They hope to send the supplies by air after receiving approval from the United Nations representation in Athens.

The United Nations sanctions, imposed on Iraq after its 1990 invasion of Kuwait, were extended last Monday after a UN official told the Security Council there had been little progress on arms inspections.

Finnish, Greek ties in good shape

Greece and Finland have excellent bilateral relations and ties of frienship, Greek Parliament President Apostolos Kaklamanis said yesterday, after meeting with his visiting Finnish counterpart Ritta Maria Uosukainen.

Ms Uosukainen began a three-day official visit to Greece yesterday, at the head of a parliament delegation.

Both sides underlined that while bilateral relations were excellent, there was room for cooperation in all sectors.

Mr. Kaklamanis called the Finnish position on Greek national issues "positive", saying the Finnish participation in the UN peacekeeping force in Cyprus underlined Helsinki's support for a united, independent and sovereign Cyprus and for human rights.

ND MPs support links between church, state

Eighty-three main opposition New Democracy MPs yesterday issued a statement objecting to a proposal to change the wording of the oath taken by members of Parliament when they are sworn in and to reports that a new constitutional revision would separate th e roles of Church and state.

"We declare our belief in the need to maintain excellent relations between the state and Church of Greece, as these have been shaped over the centuries and by the country's Constitution," the MPs said.

Last week, 52 ruling socialist PASOK deputies and one ND deputy supported a change in the wording from swearing in the name of the "holy, consubstantial and indivisible Trinity" to swearing in the name of "the Greek people and the nation", as part of revisions currently under way to the Greek Constitution.

Among the signatories to the letter are Foreign Minister Theodoros Pangalos, former foreign minister Karolos Papoulias, Environment, Town Planning and Public Works Minister Costas Laliotis and Finance Undersecretary George Drys.

Workers to stage nationwide strike in late May

The General Confederation of Greek Labour (GSEE) announced yesterday it will hold a 24-hour nationwide strike in late May to protest against government privatisation plans and labour reforms.

No date was given despite pressure from first-tier trade union organisations.

GSEE is soon expected to give its consent to a collective labour agreement allowing wage increases of 4.5 per cent for 1998, union sources said.

GSEE representatives are expected to meet with employers to discuss the agreement next week.

Greek stocks take battering in profit-taking

Greek equities yesterday lost substantial ground on the Athens Stock Exchange on the second day of a downward correction.

Traders said the market had discounted a government decision for the sale of state-owned Ionian Bank, and that investors raked in their profits early.

The general index ended 2.82 percent lower at 2,509.78 points, reversing an earlier upward trend.

Sector indices were mixed. Banks plunged 3.35 percent, Insurance fell 1.87 percent, Investment was 3.47 percent off, Leasing dropped 1.56 percent, Industrials ended 2.79 percent down, Construction rose 0.50 percent, Miscellaneous fell 0.80 percent and H olding was 3.51 percent down.

The parallel market index for small cap companies rose 2.16 percent.

Trading was active with turnover at 78.5 billion drachmas.

Broadly, decliners led advancers by 144 to 99 with another 13 issues unchanged.

Papahellinas, Alte, Nafpaktos Mills, Rokas, Attica Aluminium, Doudas, General Warehouses and Sanyo scored the biggest percentage gains hitting the day's 8.0 percent limit up.

Minoan Lines plunged 11.65 percent followed by Kyriakoulis, Euromedica, Dane and Vernikos with an 8.0 percent fall.

National Bank of Greece ended at 49,500 drachmas, Ergobank at 27,100, Alpha Credit Bank at 31,500, Delta Dairy at 5,145, Titan Cement at 23,520, Intracom at 18,200 and Hellenic Telecommunications Organisation at 8, 545.

Greek bank workers to hold nationwide strike Monday

The Greek Federation of Bank Employees Unions yesterday called a 24-hour strike at state-owned Ionian Bank for today, and a 24-hour nationwide strike at all banks on Monday.

The strikes are to protest against the government's plan to sell Ionian, a subsidiary of state Commercial Bank.

Unions have rejected a government plan to sell a majority stake in Ionian Bank through the Athens Stock Exchange.

WEATHER

FOREIGN EXCHANGE

(C.E.)

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