From: than...@athena.mit.edu (Thanos Tsekouras)
Subject: Greek news 19/5/93
Date: 22 May 1993 01:06:15 GMT

	News bulletin from Athens News Agency for May 21, 1993.

	Athens, 21/5/93 (ANA).  Prime Minister Constantine Mitsotakis
yesterday underscored the government's determination to complete its
economic recovery programme and emphasised the need to build "a climate
of confidence" in the Greek economy.
	"The first prerequisite for the programme's success is that it
be continued ... but the most decisive is to instill a climate of
confidence", the premier told the annual meeting of the Federation of
Greek Industries (SEB).
	Noting that the economy was "one step away from final success",
the premier projected sharp drops in inlfation and interest rates and
called on the private sector to launch investment initiatives.
	Mr Mitsotakis said improvements in all economic indicators had
been acknowledged by all serious analysts and international financial
organisations but pledged that the government would continue its
disinflationary policies.
	The privatisations of state telecommunications company OTE and
debt-laden refineries, scheduled this year, are also crucial for
economic success, Mr Mitsotakis said.
	He said the government had succeeded in liberalising the banking
system and money markets and in turning the budget deficit into a
surplus for the first time in many years.

	The premier also critised opposition parties for adopting
"tactics of total rejection".
	"Despite strong reaction, in the last three years, the public
sector has been curbed through our privatisation policy, the social
insurance system has been streamlined, large infrastructure works have
been implemented with European Community assistance, a surplus has been
created in the (primary) budget, and the unreasonable vested interests
of state monopolies have been curtailed", Mr Mitsotakis said.
	He added that the government would not bow to pre-election
political expediencies but would remain firm in implementing its goals.
	"Expenditures will be adapted to the goals set for the deficit
and inflation.  This government came to power to pull the economy out of
its crisis.  Now that the final target is within reach, it would be
inconceivable to back down and waste the Greek people's sacrifices", he
said.
	Meanwhile National Economy and Finance Minister Stephanos Manos
said he would not saddle tax-payers with additional taxes if the
government failed to meet the targets of its economic convergence plan
for Greece's participation in EC economic and monetary union.
	"If we note a deviation, our efforts will then shift in the
direction of combatting tax-evasion and spending cuts in the fields of
state subsidies and funding", Mr Manos told the SEB General Assembly
meeting.  He said the government's economic policy was based on making
structural changes, limiting state intervention and encouraging
investments, as well as a strict fiscal and monetary strategy that would
curb the rate of inflation and boost investments.
	Mr Manos said Greece's inflation rate, the highest in the EC,
would drop to an average rate of 12 per cent rate by the end of the
year, noting "serious prospects of it dropping to single-digit levels"
by December.
	It would be the first single-digit figure in 20 years.  The
ambitious five-year economic convergence plan, approved by EC finance
ministers in March, sees inflation of four per cent in 1998.
	Mr Manos also stressed the need for cooperation between the
private and public sector and strict adherence to the "rules" of the
government's economic policy, saying they were necessary conditions for
the successful implementation of the economic austerity programme.

	Athens 21/5/93 (ANA).  The Federation of Greek Industries (SEB)
said yesterday that the implementation of the government's stabilisation
programme had been imperative and warned that any retaxation next year
would necessitate even greater sacrifices in the future.
	Speaking at the federation's annual assembly, Executive
Committee Chairman Iason Stratos said that the stabilisation programme
had been necessitated by the threat of state bankruptcy and shrinking of
the private sector.
	The prospects for 1994 are "extremely uncertain", Mt Stratos
said, "and any giving way would multiply the cost of sacrifices which
will be demanded in the future" and eliminate Greece's chances of moving
forward together with the rest of Europe.
	Stabilisation must not be jeopardised by "hand-outs" or
"excessive demands", Mr Stratos warned, adding that "we must turn with
determination towards development, not with deficit-creating state
spending, but by creating conditions which will enable the recovery of
the private sector".
	He said that SEB would seek further cuts in public spending,
"mainly through measures of a structural nature and not wage cuts".
	Strict adherence to the budget, he added, is a prerequisite for
progress in the area "as is the continuation of denationalisation with
procedures which cannot be called into question".
	The federation, he went on, also desired the improvement of the
country's infrastructure, the reduction of the cost of money and the
implementation of an exchange policy.

	Addressing the assembly, chairman of the federation's board of
directors Stelios Argyros said that industry could serve as the linchpin
for new development "which could drag the Greek economy out of the
crisis creating new conditions for substantial convergence with the
other countries of the Community".
	"The problems in the economy can be overcome and we could soon
be on the road of rapid development", Mr Argyros said.
	He warned, however, that "we could easily find ourselves in the
vicious circle of deficits and inflation and after a few years be called
upon once again to make even bigger sacrifices".
	Mr Stratos said that SEB was working on a proposal for the
formation of an Economic and Social Council, made up of representatives
of the producer classes, "to examine economic policy issues from the
viewpoint of the economy's needs, consider possibilites and put forward
feasible solutions".
	The federation's main aim in the coming years, Mr Stratos said,
was to increase the efficiency of Greek industry so that it could cope
with the conditions of tougher competition, while at the same time
increasing its size.
	"This will require investments for the modernisation of existing
undertaking and new investments in industry which will secure the
transfer of advanced technology and increase efficiency throughout the
sector", he said.
	Mr Stratos said that investments were presently being made in
industry, "indeed, at greater pace than in other sectors".
	He cited private investments in the processing sector which
represented just 12 per sent of total investments in Greece in 1985,
while in 1991 they accounted for over 17 per cent.
	This had mainly been due to modernisation investments by
existing industrial undertakings, he said, adding, however, that the
picture was not as positive with regard to new investments.
	Policies to be implemented in the near future, Mr Stratos said,
must aim at narrowing "the huge" disparities" in profitability by
resorting competitive conditions for all economic activities.

	Rome 21/5/93 (ANA-S.Aravopoulou)  Foreign Minister Michalis
Papaconstantinou yesterday expressed satisfaction over the Western
European Union's (WEU) rapid development and the institutionalisation of
political dialogue, twice a year, with central and east European
countries in general.
	Addressing a press conference at the end of the meeting, between
the WEU and nine countries (Bulgaria, the Czech republic, Poland,
Romania, Slovenia, Hungary, Estonia, Lithuania and Latvia) which are
continuing to turn towards closer cooperation with the West on matters
of European security, Mr Papaconstantinou said a convergence of views
existed on the Yugoslav issue and that all favoured a peaceful solution
based on the Vance-Owen plan.
	"We spoke in particular of the Danube embargo and the way in
which sanctions can be controlled with the participation from now on of
Bulgaria, Hungary and Romania, which are countries of particular
interest to us", he said.
	On the sidelines of the two-day Rome meeting, Mr
Papaconstantinou held talks with the two WEU and NATO Secretary
Generals, W Sillem van Eekelen and Manfred Woerner respectively, his EC
counterparts, Douglas Hurd of Britain, Javier Solana of Spain, Alain
Juppe of France and Willy Claes of Belgium with whom he agreed to hold
talks at the NATO meeting in Athens in June and in Troika framework
(since Belgium assumes the EC presidency as of July 1 and immediately
afterwards Greece follows as of January 1, 1994) including an
explanation by him of the Belgian presidency's plan.
	"I had a private discussion with Bulgarian prime Minister
(Lyuben) Berov, Turkish Defense Minister (Nevzat) Ayaz and Romania
Foreign Minister (Teodor) Melescanu to whom I announced that today
Greece was the first country to ratify Romania's association agreement
with the Community", he said.
	In yesterday's meeting, both Mr Papaconstantinou and Defense
Undersecretary Spilios Spiliotopoulos stressed the significance of the
Athens Conference and the signing of the Vouliagmeni Accord, despite the
outcome of the Bosnian Serb referendum, while Mr Papaconstantinou said:
"We insist on our position that the Serbs themselves could impose the
blockade of the Bosnian Serbs much better than anyone else, and without
us being opposed to the arrival of observers (in which Greece
participates) or the arrival of peacekeeping forces, in which we do not
participate, since the participation of any Balkan country, in our view,
would revive old passions and would not help towards the peaceful
cohabitation of Balkan countries in the future".
	Mr Papaconstantinou stressed the need for the establishment of a
Greek embassy at the WFU in Brussels, where the WFU is based, due to its
rapid development.

	Rome 21/5/93 (ANA-S. Avaropoulou).  Foreign Minister Michalis
Papaconstantinou yesterday attended a religious ceremony at the old
Christian Basilica of Saint Clement in honor of Saint Cyril and Saint
Methodius.
	A reception at the Greek embassy at the Vatican which organised
the events was also held.  The Metropolitan of Italy Spyridon officiated
at a service held in one of the Basilica's crypts, attended by Mr
Papaconstantinou, accompanied by members of the Thessaloniki Municipal
Council and Greece's ambassadors to the Vatican and Rome.
	Short addresses were made during the ceremony by Mr Kosmopoulos
and Greece's Ambassador to the Vatican Mr Christoyannis who referred to
the great apostolic and cultural work of the two Greeks from
Thessaloniki and its significance for modern-day Europe.
	Pope John Paul II proclaimed the two saints "co-protectors of
Europe" in 1980 because they converted the Slav race to Christianity.
	The Greek delegation will be received by Pope John Paul II
today.

	Athens 21/5/93 (ANA).  Prime Minister Constantine Mitsotakis met
with the heir to the Thai throne, Prince Maha Vagiralongkorn, who
arrived here yesterday on an official visit.
	After an exchange of gifts, a luncheon was given in the prince's
honour, attended by Mr Mitsotakis, Deputy Premier Tzannis Tzannetakis,
several ambassadors and a number of government officials.

	Romanian president Ion Iliescu yesterday briefed Prime Minister
Constantine Mitsotakis by telephone on the results of his recent tour of
Slovenia, Croatia and rump Yugoslavia.

	National Defense Minister Ioannis Varvitsiotis and his Cypriot
counterpart Costas Eliades held "friendly and productive" talks
yesterday on the entire spectrum of relations.
	They said talks will continue until thoughts set out in
yesterday's meeting are fully shaped.
	Mr Varvitsiotis said the issue of whether or not UN
peacekeeping forces will stay in Cyprus and of possible alternative
solutions to maintain security on the island was not examined.  The
talks were attended by National Defense Undersecretary Ioannis
Stathopoulos, National Defense Chief of Staff General Dimitris Skarvelis
and National Guard General Inspector in Cyprus Lieutenent-General G.
Siderakis.

	Thessaloniki mayor Costas Kosmopoulos will meet with Pope John
Paul II at the Vatican today to present Greece's positions of the Former
Yugoslav Republic of Macedonia.
	Mr Kosmopoulos is currently in Rome attending ceremonies in
memory of missionaries Cyril and Methodius, whom the Pope recently named
as patron saints of Europe for their important role in converting the
Slavs to Christianity.

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