NORTHERN NOTES FEBRUARY 2008

UNCLAS SECTION 01 OF 02 THESSALONIKI 000015 SIPDIS SIPDIS FOR EUR/SE, DRL, EUR/RPM E.O. 12958: N/A TAGS: PREL PGOV ECON GR SUBJECT: NORTHERN NOTES FEBRUARY 2008 REF: A. THESSALONIKI 0013 ¶B. ATHENS 0269 ¶C. THESSALONIKI 0014 MACEDONIAN NAME ISSUE: METROPOLITAN AND POLITICAL LEADERS RALLY FOR GREECE'S EXCLUSIVE RIGHT TO NAME ¶1. The Macedonian name dispute remains the dominant issue in northern Greece, especially in the Greek province of Macedonia. Far right and nationalist groups have organized two separate rallies on March 5 (Ref A, B). One will be indoors and will include Metropolitan Anthimos and the governor (prefect) of Thessaloniki, and the other will be outdoors and led by the far-right LA.OS party. While the organizers have publicized the rallies widely, polls indicate that participation will be modest, much lower than the huge 1992 rally. THESSALONIKI PORT: FIVE COMPANIES EXPRESS INTEREST IN LEASING; CONTINUED WORK SLOWDOWN CREATES SIGNIFICANT LOSSES ¶2. Five foreign companies - COSCO Pacific (China),Dubai Ports World, APT Terminals (Denmark),Hutchinson (Great Britain) and ACTSI (Philippines),along with smaller Greek firms, have expressed interest in the tender offer for the leasing of the Port of Thessaloniki's cargo station. Meanwhile, the mobilization of port workers continued, resulting in a 45% drop this month in the port's handling pace and resulting in losses of around 1.5m. In response, port management has issued a warning, calling the workers' actions "illegal" and asking them to resume their duties. The Federation of Industries of Northern Greece has also joined in the debate, demanding compensation for its members and threatening to take legal action against the Port Authority. The Port Authority announced it will refrain from legal action against the workers for now. Despite the government's announcement of comprehensive compensation packages, no respite in workers' action is expected in March. SLOW PROGRESS OF THE ZONE OF INNOVATION ¶3. At the end of this month, the Greek Ministry of Macedonia-Thrace signed a contract with a local consulting firm for another study for the long-awaited Thessaloniki Zone of Innovation. The latest study is entitled the "strategic and entrepreneurial development plan of the Zone of Innovation." The Ministry estimates that the headquarters of the Zone will be ready by the end of 2008, while the project will be fully operational in five years' time. A dispute between the president and the managing director of the Zone, arising from the selection process for the managing director, has hampered progress. WAKFS LAW RATIFIED BY THE GREEK PARLIAMENT AMID EXPRESSED CONCERNS FROM BOTH COMMUNITIES ¶4. A draft law that provided for the administration of the Turkish/Muslim minority's wakfs (charitable foundations) in Thrace, was ratified by the parliament of Greece (Ref C). The law also introduced a 0.5% quota for Muslim employees in the country's public sector. The draft law was supported by the two major parties, while it was opposed by both political extremes, the left and right. The Muslim minority criticized the law on various grounds, such as the continued role of government appointed officials in the selection of the committees in some cases. Left and right wing parties criticized the quota as race-based politics. Many Muslims view the law, however, as a step in the right direction. EU FUNDS FOR NORTHEN GREECE ¶5. The Ministry of Finance announced 2.67bn of Fourth Community Support Framework (2007-2013) funds will be allocated for projects in the north of Greece. The sectors that will receive the greatest support include transportation infrastructure, environmental protection, education, health, information technology, research and development. Prime objectives include an increase in the competitiveness of the region and a liberalization of commerce. HIGHER EDUCATION DEVELOPMENTS, CONTROVERSEY ¶6. On a visit to Eastern Macedonia and Thrace, the Minister of Education announced the creation of two new departments in the University of Thrace and another two in the Technological Educational Institute (TEI) of Drama. He also announced future upgrading of the neighboring TEI of Serres and Kavala. Also, this month the new International University of Thessaloniki (the first state-run, tuition-charging, English-language university) faced a renewed attack by the Aristotle University Faculty on the occasion of the inauguration of its first course, for executive MBA students. The Faculty maintains that the IUT will serve as a Trojan Horse for the introduction and accreditation THESSALONI 00000015 002 OF 002 of private, tuition-charging universities in the country. YEE