Athens News Agency: News in English, 05-10-05

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

CONTENTS

[01] PM meets with Luxembourg counterpart

[02] Greece needs sustainable public finances, commissioner says

[03] PASOK party leader George Papandreou meets President, Prime Minister of Serbia

[04] Exhibition of Titanic's relics inaugurated at Zappion Mansion

[01] PM meets with Luxembourg counterpart

The two premiers also exchanged views on the latest EU developments, following the beginning of Turkey's EU accession negotiations.

The greater part of the discussion, which took place in a friendly atmosphere, was devoted to the challenges that lie ahead for Europe as well as providing incentives to the Union's citizens.

In essence, the two leaders touched on subjects that will be discussed at the upcoming, informal summit meeting to be held in Surrey at the end of October.

Juncker, who is also Luxembourg's Finance Minister, is in Athens to attend the European Central Bank's meeting that will be held on Thursday since he is a member of the ECB's executive board.

[02] Greece needs sustainable public finances, commissioner says

Early retirement should be curbed and incentives should be created to get older workers to participate in the labour market, accompanied by an overall reassessment of the pension system, Almunia said.

A second challenge was the labour market, where action was necessary to address low employment and high structural unemployment, and to strengthen education and vocational training. This would require eliminating rigidity, promoting part-time work, and pursuing active labour market policies. Education and training systems must be more responsive to the real needs of the labour market, the commissioner noted.

A third key challenge was improving competition and the business environment. Recent measures to reduce the administrative burden on corporate start-ups and to simplify regulation and taxation systems were in the right direction, but further progress in liberalising network industries and transposing EU internal market directives would be welcome.

Finally, increased investment in R&D and education were also crucial to improve productivity performance.

"The recent story of the Greek economy is one of remarkable success in terms of real convergence. Over the last five years, real GDP has been growing at around 3Ā½% per year, significantly more than the euro-area. But, at around 75%, the ratio of GDP per capita in Greece still remains well below the areaās average," the commissioner noted.

"A number of imbalances and risks have emerged or worsened. The current account deficit has increased substantially, up to around 7-8% of GDP. The situation of public finances is still worrying and the insufficient reforms are exposing the country to the growing risks arising from ageing and globalisation," he said. "This cannot be sustained for ever."

Decisive steps were needed combining fiscal consolidation and comprehensive structural reform. The latest figure for the 2004 general government deficit is 6.6% of GDP, and the debt ratio is 110% of GDP, the highest in the eurozone. "Surveillance of the Greek situation needs to remain high, given the size of the imbalances," Almunia said.

It had was now evident that Greece, like most other EU members, needed to implement important reforms in coming years.

"Letās be frank: there is no alternative, if we want a dynamic and sustainable social model," the commissioner noted.

"I believe that the benefits brought by the necessary reforms and fiscal discipline will clearly outlay the costs. For this reason, we stand ready to support and stimulate the reforms while making sure, through close vigilance and peer pressure, that all the advantages coming from macroeconomic stability and sound public finances can be soon reaped by all," he concluded.

[03] PASOK party leader George Papandreou meets President, Prime Minister of Serbia

The prime minister of Serbia briefed PASOK's leader on preparations being done by the country's government to enable negotiations with the European Union, on the association and stabilisation agreement, to come to a successful conclusion as soon as possible.

Papandrerou informed Kostunica of Europe's position that Serbia is welcome, provided that it promotes the reforms that are required at political and administrative level.

Before meeting Kostunica, Papandreou gave a luncheon for the directors of the biggest newspapers and television stations who requested a meeting with him.

Addressing the conference on the 5th anniversary of the downfall of the Milosevic regime in the morning, Papandreou expressed the need for all Balkan countries to join the European Union soon so that stability and peace can be consolidated in the region.

The PASOK leader also held private meetings with the President of Serbia Boris Tadic and Foreign Minister Vuk Draskovic in the framework of the conference.

[04] Exhibition of Titanic's relics inaugurated at Zappion Mansion

The Titanic sank in the north Atlantic after hitting an iceberg in 1912. About 1,500 people lost their lives in the tragedy.

Addresses were made during a press conference earlier in the day, organised at the Zappion Mansion, by the deputy culture minister, the organiser of the exhibition in Greece Georgette Alithinou, the exhibition's designer John Zelier, the Mayor of Rafina A. Kechagioglou, the person in charge of research in Greece on the shipwreck Rena Iatropoulou and the actor of Greek origin Bill Zane.

The exhibition will open to the public on October 8. Admission 10 euros.

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