Athens News Agency: Daily News Bulletin in English, 03-12-22

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

CONTENTS

[01] Gov't says public will get payback in wake of 2004 budget

[02] Main opposition, prime minister ahead in opinion polls

[03] Ex-main opposition minister to support party in national elections

[04] Inflation seen steady at 3.4-3.5pct in 2003

[05] No flu epidemic in Greece, gov't says

[06] Athens gets new children's playgrounds, driving practice centre

[07] Seven bodies recovered in the Aegean

[08] Euroelections bill: T/C participation remains to be sorted out

[01] Gov't says public will get payback in wake of 2004 budget

Athens, 22/12/2003 (ANA)

Addressing a parliamentary debate on the budget, the minister said the first benefit would be to reap funds in coming years stemming from a reduction in defense spending to 3.0 per cent of gross domestic product (GDP) from 4.5 per cent.

The government aimed to boost spending on education to 5.0 per cent of GDP, representing about 2.5 billion euros a year as a result of the cut in defense spending, he told the house.

The second benefit for the public would be more social spending due to a decline in the public debt by 4.0 per cent annually, aiming at a target of 85 per cent of GDP in 2008. The drop would release around 2.0 billion euros a year on health and welfare, Christodoulakis said.

The third benefit would be funds for revitalization from curbing tax evasion and widening the tax base. The result would lead to a gradual lowering of direct taxation brackets both for individuals and companies in coming years, he told the chamber.

The target was for the current 35 per cent corporate tax rate to fall to 30 per cent, and the highest tax bracket to drop to 35 per cent in 2008 from 40 per cent.

The three dividends for the public would be felt over the next four years, the minister noted.

According to international organizations, 2004 would be a year of high growth for Greece, which was expected to continue in coming years. Both public and private sector investment also was anticipated to remain high, Christodoulakis said.

In addition, further investment in the infrastructure sector would be spurred by the maturation of many co-financed programs under the European Union's Third Community Support Framework package of funds.

Furthermore, higher corporate earnings coupled with new growth incentives and low interest rates would aid business to retain high levels of investment.

Corporate investment was estimated to rise by 10 per cent and overall investment by 7.0 per cent, the minister added.

On the basis of investments, consumption and economic reform, growth of the economy was forecast to accelerate to 4.2 per cent or higher in 2004, with consumer price inflation anticipated to slow to 3.0 per cent, the minister said.

Short-term lending rates in January-September had declined with average short-term loans to business at 6.6 per cent; and long-term rates showing an even sharper decline to 6.1 per cent in September. Mortgage rates were at 5.2 per cent in the same month.

Private consumption was expected to show a 3.2 per cent rise; and the current account deficit would fall for the first time in years to 5.0 per cent of GDP, Christodoulakis said.

Finally, employment was forecast to increase by 1.7 per cent; joblessness to fall to 8.0 percent; and the general government deficit was anticipated to decline to 1.2 per cent of GDP in 2004, with the debt to GDP ratio decreasing by 3.2 percentage points to 98.5 per cent of GDP.

Parliament is to hold a roll-call vote on the 2004 budget at about midnight on Monday.

Gov't stresses growth angle of budget: Deputy Finance Minister Apostolīs Fotiadis said on Saturday that the government's budget for 2004 was growth oriented, allowing one trillion drachmas more for social policy than in 2003.

''This is also a growth oriented budget as for the eighth consecutive year it envisages a pace of growth 10 times higher than the European average,'' Fotiadis told parliament during a third day of debate on next year's budget.

He added that under governments of the ruling PASOK party, employees' income had risen by 22 per cent while in other European countries the increase was zero during the process of economic and monetary union.

Parliamentary debate on the budget ends around midnight on Monday with a roll-call vote after a five-day session. The house is expected to pass the bill.

By means of the budget, the government wants to show that economic growth will not come to an end after the Athens 2004 Olympic Games.

It contains a growth target of 4.2 percent next year from 4.0 percent in 2003, reflecting an anticipated 7.0 percent rise in investments.

It also forecasts an increase in the export of goods and services; a decline in unemployment to 8.0 percent from 9.0 percent currently; a 2.5 percent rise in productivity; and a 3.4 percent rise in real wages.

Inflation is forecast to fall to 2.5 percent in 2004 from an anticipated 3.0 percent this year.

Fiscal worries to curb growth of health spending in 2004, gov't says: Fiscal restraint means that a rise in government spending on health will slow to 8.5 per cent in 2004, Health Minister Kostas Stephanis said on Sunday.

Addressing a parliamentary debate on the budget for 2004, Stephanis told the house that fiscal curbs also characterized the budgets of the European Union's other member states.

He also noted that in the last decade, buildings in the health sector had increased by 110 per cent; 22 new hospitals had been created; and another 25 new hospitals would be completed in the coming year.

In addition, the new hospitals were located to favor the regions, Stephanis said.

The minister acknowledged that beds were lacking in intensive care units, despite an increase in recent years.

They currently represented 12 per cent of total hospital beds whereas the proportion should be at least 20 per cent, he added.

[02] Main opposition, prime minister ahead in opinion polls

Athens, 22/12/2003 (ANA)

In a poll conducted for the Sunday Vima newspaper by Kapa Research, ND led by 7.3 percentage points over Simitis' ruling Panhellenic Socialist Movement (PASOK) at 39.7 per cent of respondents against 32.4 per cent.

At the same time, 38.3 per cent of people polled said Simitis was most suitable for the job of prime minister, slightly higher than 37.1 per cent for ND leader Costas Karamanlis.

In an opinion poll commissioned by the Kathimerini newspaper and conducted by Rass, ND took a 7.8 per cent lead over PASOK at 38.2 percent against 30.4 per cent for the ruling party.

Asked to choose between the two party leaders as premier, 38.1 per cent opted for Simitis and 36.3 percent for Karamanlis.

At the same time, the survey showed that only 60 per cent of voters had taken a final decision on how to vote in the next national ballot.

ND's lead in the two polls was lower than an 8.2 per cent divide that emerged from the last published survey, which was conducted by MRB and published at the beginning of December.

In a third survey, 47.6 per cent of ND voters said that PASOK could win national elections scheduled in April 2004 if Foreign Minister George Papandreou were at the helm.

Conversely, 59.6 per cent of PASOK voters believed that Simitis was more likely to bring the party an election victory.

The third opinion poll was commissioned by the Paron newspaper and conducted by Alko.

[03] Ex-main opposition minister to support party in national elections

Athens, 22/12/2003 (ANA)

Antonis Samaras, who left ND in the early 1990s to form another party that he later disbanded, told the Sunday Kathimerini newspaper in an interview that his support would be unconditional, as it was in polls in 2000.

Samaras also said that he had subjected himself to ''self-criticism'' over the rift with ND that had helped to topple the party in national elections; but his own ''bitterness'' was also ''justified''.

On Saturday, ND's honorary president, Constantine Mitsotakis, who has for many years opposed the return of Samaras to ND, told party officials that Samaras might be given a post in the government if the party won the election. Mitsotakis was ND leader when the rift with Samaras occurred.

[04] Inflation seen steady at 3.4-3.5pct in 2003

Athens, 22/12/2003 (ANA)

''Along general lines, there has been a stabilization of prices, and, as movement of the consumer price index has shown, we are heading in a favorable direction against previous months,'' Tsohatzopoulos told reporters during a tour of Thessaloniki's central market.

''This means that this year also, inflation will be around 3.4-3.5 per cent,'' he said.

The minister called on the public to shop carefully and opt for good quality products at reasonable prices as part of the government's effort to contain inflation.

[05] No flu epidemic in Greece, gov't says

Athens, 22/12/2003 (ANA)

Cases reported to medical authorities were straightforward infections of the respiratory tract, the ministry said in a statement.

At least ten children had been taken to the Aglaia Kyriakou hospital in Athens in recent days with symptoms resembling flu, but only two were diagnosed as suffering from an influenza virus named Type A, Health Minister Costas Stephanis said in a separate statement.

[06] Athens gets new children's playgrounds, driving practice centre

Athens, 22/12/2003 (ANA)

The new facilities are part of moves by Yennimata to improve the quality of life in the Athens urban area.

[07] Seven bodies recovered in the Aegean

Athens, 22/12/2003 (ANA)

The bodies may be those of illegal immigrants, the ministry said in a statement.

[08] Euroelections bill: T/C participation remains to be sorted out

NICOSIA 22/12/2003 (CNA/ANA)

Speaking after a meeting here Friday between Cyprus President Tassos Papadopoulos and Attorney General Solon Nikitas with leaders and representatives of the political parties on Euroelections, Christou said that this issue as well as the one concerning the vote of Cypriot nationals abroad remains to be sorted out.

Christou stressed that the Cyprus Republic, the government, the House of Representatives and all the political parties are seeking to find the most appropriate method so that T/C leaving in Turkish occupied north of the island will participate on an equal basis in the Euroelections.

He noted that it would be difficult to expect the T/C to come forward and register in the electoral list the same way the Greek Cypriots exercise this right so the Republic is trying to find the legal means to enable the T/C to register in the electoral list.

''Cyprus is expected to comply with EU rules and regulations in this matter,'' said Christou adding that the EU asks for nothing more than the ''equal treatment of citizens''.

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