Greece and South Africa signed a bilateral scientific and technological cooperation agreement, defining bilateral cooperation in scientific, development and research projects along with the organizing of seminars and symposia in fields of common interest. The five-year agreement was signed by Greek Development Minister Dimitris Sioufas and South Africa’s Science and Technology Minister Mosibudi Mangena.

Russian Tourists set to Grow in Numbers

The number of Russian tourists to Greece increased by 50 percent in 2006, nearing the 200,000 mark, Greek officials said during the inauguration of a new National Tourism Organization (GNTO) bureau in the Russian capital. A promotional campaign to showcase Greece begins in the Russian market next month, and Greece is also aiming to strengthen its presence in various exhibitions and events in the country.

Talks on National Strategy

Prime Minister Kostas Karamanlis and Economy and Finance Minister George Alogoskoufis held talks regarding the National Strategy Reference Framework concerning the 2007-2013 period. Mr. Alogoskoufis said "we are on a final stretch toward the finalization of a major strategic programme concerning the development of the country. Regions in the provinces will receive over 80 percent of national and European Union funds from the 4th Community Support Framework."

Titan Eyes Albania

Titan Group said it had applied with Albanian authorities for licenses to build a cement production factory in Albania. Titan exports cement to Albania and owns two cement production facilities in Serbia and FYROM. Titan Group operates 11 cement production factories in six countries. In 2005 its volume of sales exceeded 15 million tons of cement and other materials.

2007 Draft Budget

Economy and Finance Minister George Alogoskoufis said Greece's economic prospects remain favourable, after presenting the draft budget plan for 2007. Mr. Alogoskoufis said that the Ministry was achieving its goal of reducing the fiscal deficit below 3.0 percent of GDP, to 2.6 pct this year and 2.4 pct in 2007. Spending in a Public Investments Programme will total 8.750 billion EURO next year, up from 8.1 billion in 2006, to be covered by national funds (2.4 billion Euros) and co-financed funds (6.35 billion). The programme will be fixed at 4.2 pct of the country’s GDP. Funds earmarked for the Education Ministry are up 5.9%, Health 5.7%, National Defense 5.2 %, Interior 6.0 %, Merchant Marine 6.3 %, Economy and Finance 0.1 %, Justice 6.5 %, Foreign Affairs 6.6 %, Transport 3.2 %, Culture 4.5 %, Public Works 5.6 %, Development 8.0 %, Tourism 5.1 % and Macedonia-Thrace 7.1 %.

Eurobank: Outward Bound

Eurobank's goal is to raise 30 percent of revenues and 20 percent of earnings from its activities in the so-called New Europe countries (Bulgaria, Romania, Serbia, Poland, Ukraine and Turkey), the bank's Chief Executive Nikos Nanopoulos said. The Greek banker also announced Eurobank's intention to expand its activities in the Turkish market. Mr. Nanopoulos said Eurobank would have invested around one billion EURO in Bulgaria, Romania, Serbia, Poland, Ukraine and Turkey by the end of 2006, developing a network of more than 700 branches with 10,000 employees. The Greek banker stressed that average lending, outside the Greek borders, rose by 81.5 % in the first six months of 2006, while saving deposits were up 65.2 % and assets rose 81.5 % over the same period. Mr. Nanopoulos said growth prospects of banking services in these countries were great since the countries were still at very early stages of developing a financial sector, with household borrowing at around 10 percent of GDP, compared with an average 57 % in the European Union.

Bank of Greece Report Favourable

Bank of Greece Governor Nikos Garganas said economic developments in Greece are positive and urged for the continuation of efforts to promote reforms, and to reduce fiscal deficit, unemployment, and inflation. Mr. Garganas said: "Economic developments are positive, there is a remarkable growth rate of 3.8 % of GDP which means that the living standard continues to increase, while inflation is contained at around last year's levels despite an increase in the oil price". The central banker added however, "inflation continues to be higher than the Eurozone average, burdening citizens and negatively affecting the competitiveness of exporting companies."

Chinese Talks

Deputy Finance Minister Peter Doukas met senior officials of China's Finance Ministry and representatives of a major Chinese banking group. "Interest was great on the part of the Chinese on the process for drafting the budget employing new methods and control mechanisms, matters in which Greece possesses know-how that it can offer," the Ministry said. Also discussed were management of the public debt and treasury, as well as strengthening investment between Greece and China.

Economic Strength

Greek economic growth jumped to 4.1 percent in the second quarter of 2006, compared with the corresponding period last year, according to Eurostat. The EU executive's statistics agency, in its report, said the Eurozone economy grew by 2.7 % in the April-June period, while GDP growth was 3.5 % in the U.S. and 2.5 % in Japan over the same period. Lithuania (9.2 %) and Finland (6.6 %) recorded the biggest GDP growth rates in the second quarter of 2006, and Italy (1.5 %) and Portugal (0.9 %) the lowest rates. Greek exports rose 8.5 % in the second quarter and imports were up 0.3 %, compared with the same period in 2005.

Industrial Production Up

Greece's industrial production composite index rose 2.3 % in August compared with the same month last year, according to the National Statistics Service. NSS, in its monthly report, said the average industrial production index rose 1.1 % in the January-August period, compared with the same period in 2005. The statistics service attributed the 2.3 % increase in the composite index to a 2.8 % decline in the mining production index, and 1.8 % increase in the manufacturing index and a 5.6 % rise in the electricity-natural gas-water production index.

Tourism Priority

Tourism Minister Fani Palli Petralia said that the government set a priority in the travel sector when it took office two and a half years ago. "The New Democracy government has much to show in tourism, including a rise in arrivals above 7.0% in 2004-2005 and at least 10% in 2005-2006," the Minister said, The budget for operational programmes in tourism have risen by 22% as a result of three revisions, representing 720 million EURO.

Business Mission to Kuwait

The Arab-Hellenic Chamber of Commerce and Development is organizing a business mission to Kuwait and Bahrain between December 3-8, according to an announcement on Tuesday by the Thessaloniki Chamber of Commerce and Industry. Deputy Foreign Minister Evripidis Stylianidis will head the first half of the business mission (in Kuwait between December 3-5).