Athens News Agency: News in English, 05-11-08

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

CONTENTS

[01] PM says corruption phenomena will not trap country

[02] Finmin says govt's economic policy mix is working

[01] PM says corruption phenomena will not trap country

Karamanlis added, addressing the members of the country's business world, that "these phenomena are now being handled decisively and uncompromisingly and they are already beginning to retreat."

The prime minister also presented the government's strategy on the country's adjustment to the needs of the new economy and modern society.

Speaking on the issue of "The hour of the Greek economy", Karamanlis presented the conjuncture's wider framework.

"We are in the era in which we are crossing the new cycle of world history with big steps and which is characterised by big changes," the prime minister said and pointed out that in this framework our country is functioning through the European Union which "despite the difficulties it is going through and which are knwon to all, is continuing to be a force of reforms."

Karamanlis further said that despite the adversities of the international conjuncture and the weaknesses "bequeathed to the state and the economy by the past" and despite reactions by "conservatism, the privileged and the expressors of stagnation", the government is following an "integrated course plan."

Lastly, he stressed the need for strengthening the economy's extroversion through attracting foreign investments, increasing exports, strengthening shipping, expanding the tourist industry and backing the international business activities of the Greeks and added that the new era constitutes a challenge and opportunity for lofty targets.

[02] Finmin says govt's economic policy mix is working

The minister also met the EU's commissioner for monetary affairs, Joaquin Almunia, who said Greek fiscal adjustment through the 2005 budget was proceeding satisfactorily, but more data was required on the 2006 budget.

"It is needed to tackle medium-term problems of competitiveness and fiscal equilibrium that are a scourge of the Greek economy," Alogoskoufis told reporters after a meeting of European Union finance ministers in the Belgian capital.

The government is due to provide further information by November 21 when the budget is sent to parliament. National and EU services are in close contact, Alogoskoufis reported.

Greece has submitted a report to the Commission on its fiscal progress as part of an excessive debt process.

The report foresees a reduction in the general government deficit to 3.6% of gross domestic product (GDP) in 2005 and 2.6% in 2006 from 6.6% in 2004.

The adjustment for 2005-2006 versus 2004 is equivalent to four percentage points of GDP, with 3.5 points of the total attributable to structural changes of a permanent nature, the minister said.

"On the basis of recent EU data, it is rare to achieve such a major fiscal adjustment, especially if we take into account the maintenance of high growth rates and the reduction in unemployment," he added.

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