Athens Macedonian News Agency: News in English, 16-10-31

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

CONTENTS

[01] Ownership of reforms, debt restructuring, necessary for economic recovery, says parliament's budget office

[02] NMCA opens all exhibition halls to public as of Monday

[03] Lavrov's visit to Athens on Nov. 1-2 'especially important for Greece', FM Kotzias says

[04] PPC board announces State Grid as preferred strategic investor for ADMIE

[01] Ownership of reforms, debt restructuring, necessary for economic recovery, says parliament's budget office

In its analysis, the budget office also says it is necessary to have a significant debt restructuring to allow Greece to exit from its debt trap, while it also proposes a restructuring of the policy mix followed by the government in favour of saving costs and reducing taxes which causes recession.

"We share the assumption of many (in the government and the opposition) that the scope for targeted cost savings has not been exhausted, for example in public procurement, public works and the State expenditure," the report says, adding that privatisations must be implemented with conditions that would prevent the conversion of state monopolies into private ones.

Concerning changes in labour law, the report proposes establishing a system that combines flexibility in decisions with security for employees.

At the same time, the budget office expressed its reservations concerning the forecasts on growth included in the government's 2017 budget (2.7 percent) and those made by the Bank of Greece and the institutions.

"The government and the Bank of Greece expect an almost exponential growth in 2017, by 2.7 percent of the GDP. The same optimistic forecast is included in the 2017 budget plan (October 2016). In fact, the International Monetary Fund agreed too. However, the data we have available do not allow such optimism," the office said in its report, but added that if the current forecasts on revenue and other economic targets are met, "it will be possible to avoid the activation of the so-called 'cutter' in 2017", referring to the contingency mechanism.

"In the coming months it will become increasingly important to revise the targets for primary surpluses downwards and achieve a final 'settlement' on the debt. The government and the opposition seem to agree on this goal and have as an ally in the IMF," the report continues.

It also says that compensatory actions, mainly by the government, could significantly reduce the recessionary impact of tax-centered adjustment policy. These actions, combined with a development-friendly (and socially fair) plan to cut primary spending and fight tax evasion, may lead to "expansionary fiscal consolidation", the report says.

[02] NMCA opens all exhibition halls to public as of Monday

The event will start at 19:00 and includes about works by Greek and other artists divided into themes. The exhibition will be open every day except Monday from 11:00-19:00 and every Thursday from 11:00-22:00. The exhibition will last until January 29, 2017.

[03] Lavrov's visit to Athens on Nov. 1-2 'especially important for Greece', FM Kotzias says

Kotzias said the visit was expected to confirm the good bilateral cooperation between Greece and Russia, especially in the area of investments, economy and energy. It would also serve as an opportunity to discuss a series of international and regional issues, such as the crisis in the Middle East with emphasis on Syria and the Cyprus issue. The minister expressed satisfaction with the recent signature of a programme of talks between the Greek and Russian foreign ministries for the period 2017-2019 covering a broad range of bilateral cooperation issues.

"Greece believes in the need to keep channels of communication with Russia open," Kotzias added, noting that Russia was an integral part of Europe's security architecture and should not be excluded from this in any way. Asked about EU preparations to impose new sanctions on Russia in response to the situation in Syria, Kotzias said that he personally had reservations about such a prospect.

"Sanctions, if they are adopted, must have a specific purpose and this must be to normalise the situation. If sanctions are adopted exclusively due to the activation of cold-war reflexes, then the specific measures will be unproductive and not contribute to keeping channels of communication open," he said.

Greece's position was in favour of a focus on diplomacy to create the conditions that will allow an end of the civil conflict in Syria and avoid extending a fruitless antagonsim, Kotzias added.

[04] PPC board announces State Grid as preferred strategic investor for ADMIE

The Chinese company offered 320 million euros to buy a 24 pct stake in ADMIE. A report by Barclays, presented during the board meeting, said the price offered by State Grid was fair and stressed that the tender procedure was objective and transparent.

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