Athens News Agency: News in English, 06-09-30

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

CONTENTS

[01] 2007 budget completes government's work on economy, minister says

[02] Papandreou message for Cyprus Independence Day

[01] 2007 budget completes government's work on economy, minister says

Other "finishing touches" would be the fulfilment of promises regarding the EKAS pension supplement and OGA farmers' pensions and upcoming legislation for the taxation of natural persons, the minister added.

Asked whether "politically fairness" required that the 2008 budget to be drafted by a government with a fresh mandate, given that the next general elections would have to be held by March 2008 at latest, Alogoskoufis admitted that the 2008 budget would have to be implemented by the government arising from those elections.

"I believe that it will be a New Democracy government led by Costas Karamanlis once again. If you are implying that elections should be held before the [2008] budget is drafted, this is something I don't know. I know that our work on the economy during the present four-year term is completed with the budget for 2007. All the rest are political decisions that can be taken only by the prime minister," he said.

Asked when Greece would be able to exit from the excessive deficit process imposed by the EU, Alogoskoufis said that a discussion on this would begin after March 2007, when the last economic figures for 2006 had been published.

"There is no doubt that the deficit will be below 3 percent in the current year," the finance minister stressed, noting that the only uncertain point was the predictions that the European Commission would make concerning the deficit figures for 2007.

"We will, of course, try to persuade them to make the best possible forecasts," he added.

The minister also underlined that Greece's success in bringing down the deficit was unprecedented in the European Union.

"I consider Greece's example to be unique in the EU in recent years. I mean to make such as large fiscal adjustment while at the same time maintaining high growth rates, reducing unemployment, without problems of inflation and at a time of relative stagnancy in Europe and a heightened oil crisis," he emphasised.

Commenting on corruption, meanwhile, Alogoskoufis said that this was something that had to be dealt with by all parties together. "It cannot be fought when one party blames the other for the corruption that existed during its days in government," he said.

For the banking sector, following repeated reports of a 'banking cartel' that imposed much higher interest rates on loans than the EU average, the minister said that there should be both more competition - pointing to government measures to private Emporiki, clean up ATEBank and boost the Post Office Savings Fund - and better supervision.

For the last, he said that supervision of banks could no longer be divided between the development ministry and the Bank of Greece, saying it should be chiefly taken on by the central Bank.

[02] Papandreou message for Cyprus Independence Day

The letter assures Papadopoulos that PASOK will work systematically toward Cyprus' final reunification and expresses his party's best wishes that Cyprus' course within the European Union will be one of unobstructed progress and growth.

"PASOK and myself personally, actively support and stand by the people of Cyprus and its political leadership, thus assisting in the collective effort to find a just and viable solution to the Cyprus problem as soon as possible, within the framework of United Nations resolutions and with respect for the European acquis," Papandreou wrote.

PASOK's leader also points to the historic significance of the Cyprus Republic's entry into the European Union, which along with the decisions of the UN creates conditions that offer a framework for the island's reunification.

"I assure you categorically that, both myself personally and PASOK, will continue to work systematically so that this reunification can at last become reality for the good and prosperity of the entire Cypriot people," he concluded.

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