By ELENA BECATOROS Associated Press WriterATHENS, Greece August 25, 2010 (AP) Greece says recession milder than forecast but survey shows businesses struggling....

Greece's recession is milder than initially expected and the economy will shrink by less than the forecast 4 percent this year, the finance minister said Wednesday, although a separate survey showed many businesses are struggling to stay afloat.

George Papaconstantinou told deputies in Parliament that although problems remained, there was now "light at the end of the tunnel," and reiterated that there was no question of Greece restructuring its debt.

We all know that three months ago, the Greek economy came to the brink of the abyss. We know that three months ago, it found itself a breath away from a suspension of payments," Papaconstantinou said. "We managed to avert the worst. We managed to avoid bankruptcy."

Still, a survey by GSEVEE, an association representing small businesses — which make up 98.7 percent of Greek enterprises — showed that eight in 10 businesses have seen their overall economic situation deteriorate in the first six months of the year.

Greece narrowly avoided defaulting on its debt in May, after receiving the first batch of rescue loans from a three-year, €110 billion ($138.74 billion) package of loans from the International Monetary Fund and European Union. In return, it is implementing a strict austerity plan that has seen it cut civil servants' pay, trim pensions, overhaul the social security and pension system and increase consumer and income taxes. The government has pledged to reduce its deficit from 13.6 percent of gross domestic product last year to 8.1 percent at the end of 2010 and below the EU's limit of 3 percent for countries using the euro by the end of 2014.

"Problems remain. The Greek economy is in a recession. But it is in a recession that is shallower than we could have expected," the finance minister said, adding that "the year will close with a better performance than that which is foreseen ... in other words a contraction in real terms of 4 percent." Papaconstantinou acknowledged that "jobs are being lost and will be lost," but insisted that the overall situation was improving.

"We are starting to see the light at the end of the tunnel. We are starting to see the time at which we will be able to tell Greek citizens that the worst is over, that the Greek economy is stronger, that income is increasing again," he said.

The IMF and EU have praised Greece's fiscal adjustment efforts, and the latest figures show the country has managed to reduce its deficit by 39.7 percent from January to July, slightly above the target of 39.5 percent.

But while spending cuts are above target, revenue has grown at a slower pace than expected, and Greek business representatives have been painting a bleaker picture, especially for small enterprises employing less than 50 people.

The GSEVEE survey, which questioned 960 small businesses nationwide between July 15 and 28, showed conditions were tough. Of the polled companies, 77.8 percent said they had seen a fall in turnover, while 77 percent had seen a drop in demand and about one in five had to reduce their staff.

"The true economy ... is touching the limits of its buckling point," GSEVEE head Dimitris Asimakopoulos said during a news conference. "A bit more, and it will exceed the limits of what it can bear. It will break, and the consequences will be incalculable."

According to the survey, 44.4 percent believe they will quite likely or very likely face problems so severe they would have to shut down their businesses in the near future

The economic climate in Greece improved slightly for a second straight month in July but overall business conditions remain poor, with the retail and construction sectors in the worst situation, according to the Foundation for economic and Industrial Research (IOBE).

The Athens-based think tank said that its index-which measures short-term economic trends-rose to 66.3 points in July, from 63.8 in June and 61.8 in May.

“Essentially, business expectations have simply steadied and the climate has not particularly changed, with the general feeling of discontent on the course of the economy remaining strong”, it said in a statement.

Business sentiment in retail hit a new historic low in July due to very poor sales expectations for the current period. Earlier this week, traders indicated that revenues from the summer sales season, now in its third week, are about 10 percent lower than last year’s levels as reduced prices fail to temp consumers scared off by the worsening job market.

Consumer confidence rod=se one point to minus 66 points from a historic low of minus 67 in June and May, IOBE said.

Meanwhile, sentiment in the construction industry also worsened, due to a poor outlook for future projects, the think tank added.

On the positive side, there was a slight improvement in sentiment in the industrial sector, in line with a small spike in the services sector.

Central bank says lenders should seek alliances; see pressures easing in last few months of 2010

The country’s central bank has called on lenders to seek strategic alliances that will make the big enough to survive the economic crisis, in comments likely to fuel talk of takeover activity taking place in the sector.

In a financial stability report, the bank of Greece said yesterday that lenders should initiate strategic deals as the deepening recession cuts into their profits, reducing credit volumes and upping bad loans, while also creating liquidity problems.

“Restructuring in the banking system would help Greek banks to acquire a critical mass that would allow them to benefit from economies of scale and more quickly regain access to international money and capital markets” it said.

Lenders need to “proactively” adapt to the changing environment by maintaining capital levels above regulatory minimums, establishing impairment charges, rationalizing operating costs and managing resources prudently, it added.

After recent calls by Finance Minister Giorgos Papacontantinou for banks to join forces, Piraeus Bank made the first move in the sector last month by offering to buy controlling stakes in state-owned Hellenic Post-bank (TT) and ATEbank for 701 million euro.

The government has appointed advisers to consider the deal as market talk grows that more banks will seek strategic deals over the summer, sending bank shares sharply higher.

Bank stocks have gained 42 percent over the last month, versus a 22.5 percent advance in the broader market. TT shares lead the advance, jumping 84 percent, followed by a 63 percent rise in Eurobank EFG. The Bank of Greece also said it expects a better end to the year after the country’s large fiscal and external imbalances triggered successive credit rating downgrades of sovereign dept in the first few months of 2010, leading to an economic and liquidity crisis.

13 May 2010

One in ten holiday home owners (211,000) have no insurance for their properties abroad, putting them at huge financial risk. The study from Saga Holiday Home Insurance also shows that over 160,000 over 50s who have insured their European properties in pounds Sterling could be caught out due to the weak pound.

The last three years have seen changes to the Euro - a fall of a quarter from a high of 1.51% in January 2007- which in turn affects those with properties in Europe that are insured in Sterling. For example, possessions valued at £10,000 in 2007 would have given policyholders 15,069 euros. In 2010, this would only provide 11,050 euros; combined with the fact that the cost to replace such items is also likely to have increased in the period means that holiday home owners could be left out of pocket.

The study also shows that whilst 71% of over 50s have reviewed their policies in the last year, 19% have not checked for up to three years and one in twenty (6%) have never checked their valuations.

Andrew Goodsell, Executive Chairman, Saga Group Ltd, commented: "Holiday homes are often left vacant for periods of time making them especially vulnerable. It is therefore important that people regularly check their level of insurance to ensure that they are protected for the full value of their property and possessions."

The average owner only spends one month a year in their properties, meaning for much of the year the properties can lay vacant and vulnerable to burglary and vandalism. Saga's Holiday Home Insurance has no un-occupancy limit, meaning policyholders will be covered if an incident happens whenever the property is vacant. Saga also offers up to £25,000 for protection from loss of rent, a key concern for owners who rent out their properties as a source of income, and up to £2m cover for legal liability as owner of the home.

The bailout of Greece has already been credited with a variety of feats since it was announced on Sunday. It helped lift the Dow Jones industrial average to close above 11,000 for the first time since 2008 and drew investors to the Greek government's latest debt auction on Tuesday.

Wall Street is apparently not convinced. Even after the bailout announcement, Greece remains one of the world's most dangerous countries for creditors when ranked by the cost of bond default insurance. Only Venezuela, Argentina and Pakistan are more expensive.

After months of speculation over how Greece would manage to pay its debts due in coming weeks, the European Union and International Monetary Fund pledged Sunday to lend Greece a total of 45 billion euros ($61.1 billion) to keep the country solvent (up to 30 billion euros [$40.7 billion] would come from the EU and 15 billion euros [$20.4 billion] from the IMF). As a result, the cost of insuring Greek debt with credit default swaps has dropped over from 443 basis points on April 8 to 432 basis points on Thursday (or 432,000 euros for every 10 million euros in debt).

In a report this week, debt analysts from the research firm CreditSights noted that the current cost of insuring Greek debt is still higher than in late March, when the EU and IMF appeared close to putting together a rescue package, and Greece's credit default swaps fell below 300 basis points.

So why should Greece, with an EU and IMF bailout lined up, look more risky now than last month?

For starters, some are beginning to question whether Germany will be able to come up with its reported 8 billion euro ($10.9 billion) portion of the EU loan. German popular opinion runs against helping Greece, and any support would likely need parliament's approval. A group of academics already plan to file a complaint with the country's constitutional court to block the bailout, according to the Rheinische Post newspaper.

Another reason: 45 billion euros may not be enough to restore Greece's health. EU rules were supposed to limit member state's debts to 60% of economic output, or gross domestic product, but given the interest payments on its debt, CreditSights estimates that even if the Greek government can balance the budget by 2011, debt would hit 130% of GDP in three years. And balancing the budget through spending cuts undermines economic output, lowering GDP and potentially steering that figure even higher.

"Moreover, the full amount of the loan is likely to meet refinancing needs only for the next year or so," CreditSights' analysts write, "which then raises the question of whether the Euro zone members would be willing to provide additional support to Greece to address refinancing needs beyond 2010."

So the question remains whether financing concerns are keeping the costs of insuring the country's debt high, or if investors that smell blood in the water are squeezing Greece for profit? George Papandreou, Greece's prime minister, has argued that Wall Street traders have pushed up the cost of credit default swaps to get higher yields on the corresponding debt and is among those who have likened the practice to taking out fire insurance on a neighbor's house than burning it down to collect.

The bulk of credit derivative trading runs through Wall Street's largest banks – Bank of America, Citigroup, Goldman Sachs, J.P. Morgan Chase and Morgan Stanley.

Greek Real Estate Investment Companies are unaffected by the new tax regime regulations, maintaining their taxation benefits. Among the benefits left untouched by the hurricane of tax measures enforced by the government for listed REICs, is their tax exemption of dividends, making these companies very attractive for solid stable income investors.

The fact that REICs maintain their tax benefits paves the way for major property owners to put up their properties for sale so they can benefit from more favorable taxation. Moreover, exchanging third party properties for REIC shares is widely now facilitated, allowing a greater degree of multi shareholding.

The first leg Sklaveika the beginning, reaches up to the Panorama and then turning back to Sklaveika. In order to proceed, head west from the well and then delete the door Sklaveika - Panorama by the same route as the path Sklaveika - Longaki - Panorama - Sklaveika.

The Panorama is where we tap water to drink and relax. The refund is the same way. This course is very easy.
 
The second route starts again from Sklaveika. Includes passage of the rally, the top, Vlora, and finally back to Sklaveika. Taking the road to Vlore, after 800 meters make right turns to the "head".

The next step we take is to follow the ascent to the top. We run around the mountain to the right and south and then take the slope of the land of Vlora.

From here we arrive at the square where shops can be equipped with water and soft drinks. Following the main street, located next to the stadium back in Sklaveika.

The third pathStarting from the Sklaveika, takes us on Panorama, Karyes, Kalyvia and passing through the cemetery back in Vlora Sklaveika. West of the good well go to Panorama and taking the downhill we arrive at Karyes.

In the village take the right turn to be careful in parallel to the river road. After 4 kilometers we are on tap "Karyes. Then pass by the settlement "Kalyvia, which is abandoned.

There, we are among countless olive trees. Going up and we will be tired enough to knot at the cemetery of Vlora. To get to Sklaveika take right turn.

Editing: John - Alexander Ioannidis

No problem with Greek banking system, deposits

   ΤέλοςφόρμαςΑρχήφόρμας

    Prime Minister George Papandreou, speaking at a press conference in Brussels at the end of a EU Summit, emphasised that "there is no problem with Greece's banking system or bank deposits," while again dismissing press speculation that the country will exit the euro-area.

    "We won a very important decision (on Thursday evening) and we must rise to the occasion," he stated, adding that "we gave and are continuing to give a difficult battle, not just for short-term benefits, but to create a strong Greece, one that does not only overcome difficulties but also sets an example."

    On his part, Finance Minister George Papaconstantinou said, in an interview to the Sunday newspaper "Kyriakatiki Eleftherotypia", that the agreement struck at the EU summit in Brussels on a mechanism to support Greece was "a major victory".

    He stressed, however, that the government's aim was that the mechanism would never need to be activated.

    Papaconstantinou also asserted that the IMF would have the smaller, supplementary role and that the deal was in no way tantamount to new austerity measures.

    "Creating this mechanism was made possible precisely because Greece showed great determination in the effort to solve our fiscal problems on our own, with a serious Stability and Growth Programme and additional tough measures to ensure that we achieved the goals. This was the catalyst and in the final decision there are no additional terms. For us and for everyone it is taken for granted that we will continue with the same determination in implementing our programme," he said.

    The finance minister said that efforts to create a European Monetary Fund and to issue a Eurobond were not being abandoned and that the summit's decision "was in the direction of creating a new model of economic governance in the eurozone".

    On the tough austerity measures taken by the government, Papaconstantinou stressed that these were decisions resulting from necessity, not ideology.

Send your: Christos Konstantopoulos

In one of the rocky headlands of the southern peninsula of Messinia, stands the large and imposing castle of Methoni.

He stands there with the strengths of the walls charged with memories of centuries fiercely as the elements of nature, the sharp night and the wild waves of the Ionian erode day by day.

The location is truly unique, a key point for navigation from ancient times until the revolution of 1821, and afterwards made the port and the castle was a real challenge to their respective conquerors ... Franks, Venetians, Ottomans and pirates.

Where you're standing up, the view is very impressive. The fort with its impressive walls like a giant stone ship traveling in the Ionian.

Methoni in ancient times was known as Pidasos as Homer calls it, as one of the seven cities of the Peloponnese offered by Agamemnon to Achilles, to appease the anger.

During the Roman period the city gained its autonomy and enhanced with better defenses and the Byzantine era was regarded as one of the most important cities of the Peloponnese.

During the first Venetian period 1206-1500, the region experienced strong growth and trade flourished. The Ottomans in 1500 will occupy the castle and the city after heavy fighting.

The second Venetian period will last from 1687 until 1715. The Turks would retake then Methoni and will hold up in 1828 to be released.

The entrance to the castle is now the gateway to the land. Constructed in 1714 by the Venetians with quality artwork and bears carved representations. Behind the gate and to protect raised a strong round tower. The castle has three more gates in the sea.

The famous bridge with 14 arches connecting the gate of the land to the opposite side of the ditch. Initially the bridge was constructed of wood and stone based on pillars. The current form in 1828 after he took the intervention of engineers of the French expeditionary force General Maison.

In the central square of the castle dominates a column of granite bearing purple Venetian capital.

Nearby is the Church of the Transfiguration likely built in the 19th century. South kept two Turkish baths, and half-destroyed sections of underground water tanks and powder kegs.

The Ottomans built by the wall separates the citadel from the rest of the castle. The defense of immunity was made with five towers and the portal of entry has strong features of Islamic architecture.

And at the citadel ruins of barracks, houses, water tanks and gunpowder.

The citadel was protected by double walls and bastion Bembo.

In the southern part of the castle is the main gate of the sea, the portal of San Marco, which is protected by two towers that communicate with each other.

The portal with the other two gates of the sea offer direct access to the port to accommodate vessels and transportation of goods to the castle and town.

At the gate of the sea a stone bridge leading to the octagonal fort epithalassio, Bourtzi, which is built on a small island, the southernmost point of the cape, the "MOTHON stone" as called by Pausanias.

The construction of the fortress began in the late first Venetians and ended by the Ottomans in the 16th century.

Bourtzi served as headquarters guard for the control of the port, a lighthouse, a prison but rather as a shelter for residents in times of siege.

The castle of Methoni in the great history that is lost in the mists of time is a real lady in Messinia, and offers an almost metaphysical calm environment that invites visitors to live in the past and present.

Bourtzi the fortified gate of the sea, and solid tumors of the castle and stimulate the imagination brings to mind images of other eras. Brave sailors running across the Mediterranean towards the Holy Land and brave warriors who gave their lives to defend the castle and town.

A single visit to a massive fort as if last year is never enough. The serenity, the ypovlitikotita and solitude of the area will enchant us and will leave their stamp in our memory, and nostalgia for a new visit.

In the summer of 2005 and completed the installation of the lighting of the castle at night. Strong lights now illuminate all sides of the fort to the gate of the sea and Bourtzi, offering guests a real spectacle.

LONDON - Do you like proverbs? Here is one that can be applied the leaders of Europe: "Empty vessels make the most noise." Or in plain words, those cursed with an empty head make more, meaningless noise than wise, thoughtful people.

Think back to Feb. 11. The newly-elected European president, Herman Van Rompuy, had to alter the agenda of his first European Summit to create a period of time in which Greece could be discussed.

On that day the Greek Prime Minister George Papandreou had stated that Greece did not need any help from the European Union or other euro-zone nations to contain its budget deficit. The world was told that Greece would be able to access the capital markets and implement a "Spartan" existence through tough budget cutbacks. The spread of 10 year Greek government debt over German 10-year paper was 2.732% or 273.2 basis points.

This puzzles me. Here we had a Prime Minister who stated that his nation did not need help, and yet he flew to Berlin to see the German Chancellor Angela Merkel on Friday Mar. 5 (when Greek bond spreads were at 291.1 basis points) and then to Paris the following Sunday, to meet French President Nicolas Sarkozy, ostensibly to discuss the possibility of financial support.

While the German leader lacked enthusiasm, Sarkozy did not, insisting that Greece's euro-zone partners could not abandon it and defeat the very purpose of the 16-nation, single-currency project. French Finance Minister Christine Lagarde later said France would support Greece, and didn't offer any detail. (Watch the video: "Lagarde On European Bailouts.")

The markets were less than enthused, and on Mar. 8 the Greek spread was out to 305.9 basis points. It's as if investors were screaming at the politicians that they wanted specifics.

As the Greek prime minster toured Europe and then headed out to Washington D.C., two critical developments took place. The president of the European Central Bank, Jean Claude Trichet, said it would not be "appropriate" for the International Monetary Fund to help Greece, a seemingly clear statement that the European Union was going to solve the Greek issue themselves.

Simultaneously, the Greek government successfully launched into the market a 5 billion-euro ($6.8 billion) offering of a 10-year bond. Demand was high, with the total number of bids recorded at 14.5 billion euros ($19.7 billion). At the time, the auction was claimed an absolute success.

But I was concerned about this optimistic view--the Greek bond spread at the launch was 326 basis points over Germany’s, and just the day before, the previous 10-year Greek benchmark had traded at 285 basis points above the bund. No wonder the new issue was snapped up!

In my opinion, all this deal achieved was a complete skewing of the euro-bond market so that fringe nations would face a higher cost of capital. They, too, would need to give away new paper if they were to achieve a successful distribution.

It was a classic case of being hoisted by one's own petard. Greece has to refinance a further 12 billion euros ($16.3 billion) of debt in April and another 8 billion euros ($10.9 billion) in May, with the cost of capital running at an average of 386 basis points over the German costs, for the 3-7 year maturity range.

Such costs do not square with lofty deficit-reduction plans that the Greeks have. How can they pay those financing costs and still bring the budget deficit down from 12.7% of GDP, to 3% in just two years? If one thinks the street protests in Athens so far have been bad, it is nothing compared to what will follow.

Faced with this, we have the Greek prime minister announcing on Thursday, just 35 days after he said he did not need help, that unless the European Union extended a firm helping hand, Greece would be off to talk with the International Monetary Fund. (See "Smart, Greek Brinkmanship.") If that proves to be the case then all who bought the Greek 10-year bond at issue on Mar. 4 were sold a pup.

Now all manner of curious meetings are taking place. The ECB's Trichet is at a meeting with the managing director of the IMF, Dominique Strauss-Kahn. They are not likely to be on the best of terms as the IMF head said on Friday that European momentum on financial market reform has slowed. "Europe needs a fundamental overhaul of its financial stability structure," he chided.

Not to be outdone, European Commission President Jose Manuel Barroso said he didn't exclude turning to the IMF to assist Greece, while Olli Rehn, European Union Economic and Monetary Commissioner, said that euro-member states should take the lead. These remarks highlight just how divided the European nations and bureaucrats are.

It is incredible that anything ever gets accomplished in Europe, given all the jetting about, fine dining and flurry of talking heads that must have their say. It continues anon. On Sunday, European Competition Commissioner Joaquin Almunia will speak in Madrid on the future of Europe, and Mar. 23 will be a fascinating day as euro nations file their official data for the level of national deficits, with the official report being released on Mar. 24.

But this is small fare. The most noise will come from Brussels on Mar. 24-26, when the European Union leaders gather, with strong pressure to announce a decision on Greece. The recession must be a distant memory for Brussels-based caterers, photographers and even the news hacks, all happily engaged as the politicians debate the future strength of the single currency. How strong that union remain depends on how the euro zone acts on its "weakest link." So far the prospects are not good.

Stephen Pope is the chief global equity strategist of Cantor Fitzgerald in London, covering debt and equity markets as well as economics, politics and corporate strategy.

"This document constitutes a marketing communication and shall not be interpreted as investment research. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of dissemination."

Six out of ten Greeks have debts, but only two out of ten can not pay back personal loans and credit cards, according to research KAPA Reasearch held in March and to the indebtedness of households.

Research presented at the conference of the Ministry of Finance for the indebted households reveals that 15% of people owe can not pay back, not just consumer loans and credit, and even rent, utilities and shared.

For 60% of those debts, the proportion of debts equal to 40% of their income, while 16% exceed 60% of their income. This substantial 16% to 8% of the population.

The debts, as stated 60% of those who owe, cause them anxiety and nervousness. The 26.9% of those states that owe their debts cause problems in family and professional peace and 2 in 10 reported having health problems because of debts.

The 64.8% of those who owe state that is unable to repay his loan and 84.2% stated that the debts do not exceed 85% of the cost of housing.

Of those who owe 45% more or less afraid, of losing his home, but 5 to 10 do not care to make amicable settlement with the banks.

Very little will be this year's Easter exodus of the Greeks because of the economic situation and the "green" this year's celebration, according to preliminary data from the booking of hotels and tourist agencies.

It is significant that the reservations so far do not exceed 50%, and there are some exceptions that are close to 85%. In practice, however, the Greek arrange their vacation always the last minute hoping that hoteliers, who see their rooms remain empty.

However, finding a ticket, especially on peak days, such as Holy Wednesday and Holy Thursday and for some destinations, Good Friday, just not easy is because last year a further reduction of ships and thus routes .

Recalled that last year's Easter had departed from Piraeus and Rafina to the Aegean islands and Crete total of 250,765 passengers, recording a decrease of 11% compared with those who were released from two ports in Easter 2008.

PARIS - French President Nicolas Sarkozy promised Greece Sunday that euro-zone countries would help it overcome its financial problems and vowed a European crackdown on financial speculators Athens blames for its woes.

He was speaking after talks with Greek Prime Minister George Papandreou, who is seeking pledges of support from European capitals that will reassure markets and lower the debt-stricken country's hefty borrowing costs.

"The main actors on the European stage are decided to do whatever is needed to make sure Greece is not isolated," Sarkozy said, ruling out immediate financial backing, but stressing that his economy minister was drawing up aid scenarios.

"Christine Lagarde, in tandem with her colleagues in the euro zone and in Europe ... is working on a certain number of precise measures if Greece needs them," he said, standing alongside the Greek prime minister.

Papandreou met German Chancellor Angela Merkel and Luxembourg Prime Minister Jean-Claude Juncker Friday and will fly to Washington later Sunday to see U.S. leaders.

He came out of Friday's meetings looking disappointed at the lack of specific pledges, despite his widely applauded efforts to curb the Greek deficit. He was much more upbeat Sunday.

"After my meetings more specific ways are beginning to emerge about how to deal with any possible borrowing problems," he said, adding that measures would be announced shortly to tackle speculators profiting from Greek financial difficulties.

Greece says abuse of credit default swaps, used to insure against default, has pushed up debt costs and Papandreou told reporters that France, Germany and Juncker were ready to act.

"Tomorrow or the day after you will know about it. It is an initiative aimed at finding a solution to the speculators," he said, adding that he would seek American support for the move when he met U.S. President Barack Obama next week.

Germany has appeared particularly reluctant to ride to Athens's rescue, with public opinion opposed to giving handouts to a country that has failed to address its budget problems for years, but Sarkozy said no one should doubt Merkel's commitment.

"I believe in German solidarity," said the president, who spoke to Merkel at length earlier in the day by telephone.

Greece unveiled a 4.8 billion euro ($6.6 billion) austerity package last week to hack back its double-digit deficit, winning it some breathing space on the markets.

But although the spread between Greek and German 10-year bonds narrowed, analysts say the yields are still too high for the long term sustainability of the country's finances.

Papandreou has told Europeans he may have to turn to the International Monetary Fund if E.U. assistance is not forthcoming.

Sarkozy reiterated Sunday his opposition to a bail out by the IMF, which is headed by his political rival Dominique Strauss-Kahn, and Papandreou said this option was receding.

"When Europe starts moving, a European solution starts becoming more credible," he said.

Some E.U. finance ministers have suggested setting up a new European institution that could offer IMF-like assistance to euro zone countries that hit financial difficulties. Papandreou said he would welcome this, but saw it as a longer term project.

"This does not help us deal with any short term problems the country might have," he said.

Markets are closely watching whether the Greek public will accept the government's belt-tightening or take to the streets.

Police said 12,000 protestors took part in marches in the capital Friday, but so far the demonstrations have been much more low key than violent riots seen in 2008.

Opinion polls at the weekend showed Greeks were roughly divided over the tax hikes and savings unveiled last week.

However they also showed strong opposition to some of the main elements of the austerity package, including a rise in value added tax (VAT), a 30% cut in public sector holiday bonuses and a pension freeze.

One survey from Alco showed that 86.2% of respondents considered the new cuts unfair and that 64% were unconvinced Papandreou's latest package would pull Greece out of its debt crisis.

For all the latest headlines visit Forbes Europe.

Brian S. Wesbury and Robert Stein 02.17.10, 12:01 AM ETIn the aftermath of the Panic of 2008, it's easy to understand why many investors are so "jumpy" lately. It seems that at the slightest sign of trouble, stockholders head toward the exits to avoid getting stampeded like they were back during the mortgage security meltdown.

Sovereign debt defaults, and the potential for problems in Greece to spread around the world, have stoked the most recent fears. The Greek meltdown has undermined confidence, but the ultimate danger to the U.S. economy has been vastly overestimated. Greece's government owes about $400 billion, which is just 4% the size of the $10 trillion U.S. mortgage market. As of yet, we know of no major financial institution, either in the U.S. or abroad, with solvency issues because of Greek debts.

Of course, direct threats to banks are not the main issue. Many fear that a Greek default could drive up interest rates on other sovereign debt, drive down debt values and perhaps kick-off another financial panic as problems spread. Fortunately, the potential for this issue to spin out of control is very small. In fact, there is a very good chance that this entire episode will lead to some sanity in government spending generally and a better, more market-friendly future.

As of 2008 Greece had a top income tax rate of 40% and a value-added-tax (VAT) of 19%. In addition, employers paid 28% of salary for social security, while employees paid 16%.The debt issues in Greece have little to do with revenue; they have everything to do with the worldwide inability of governments to spend within their means. The same is true in the U.S. It is not tax rates that are the problem; it is spending that threatens solvency. Just look at Illinois and California. If these states raise tax rates again, more people will leave, hurting the attempt to raise revenue.

Even if Greece, Illinois, California or the U.S. itself repudiated its debt--declared it would make zero payments--it would still have substantial annual budget deficits. At that point, the only fix would be to cut spending because potential lenders would go on strike.

This is a structural problem, not a systemic and cyclical one. The housing crisis was an easy-money-induced bubble. The issue with sovereign debt is partly caused by easy money (meaning central banks have used low interest rates to help mask the pain of spending and taxes), but mostly caused by politicians and voters who greedily spend future generations' resources today. It's ironic, but markets and investors (the ones many populists like to berate) make up the system that will help protect these future generations from the greed of politicians and voters.

In the end, the only way for Greece and other political entities to fix their budget problems is to cut spending. Politically, this is very difficult. But in tough times like today, when everyone is feeling the pinch, it is just as hard to convince other (E.U. or U.S.) taxpayers to bail out the scofflaws.

We suppose that this could all end horribly; if governments refuse to cut spending and markets refuse to fund that spending. Then debt defaults, like dominoes, could start one by one. However, there are already pressures being applied to Greece by other members of the E.U.--and very similar pressures will likely be applied to states in the U.S. that are in trouble.

Greece could be the alarm bell that signals the beginning of a more sane budgeting process, with politicians and voters finally coming to the understanding that there is no such thing as a free lunch. If that happened, fear would turn to cheer very quickly.

Money

Brian S. Wesbury and Robert Stein 02.17.10, 12:01 AM ET

Last Thursday, as global markets attacked Greece and its weak neighbors, leaders of bigger European powers announced that they would "safeguard financial stability in the euro area." Greek Prime Minister George Papandreou was defiant. "We will not be needing help," he said, later complaining that Greece had become "a laboratory animal in the battle between Europe and the markets." Papandreou is right to be resistant. He would do the West a favor if he publicly told his would-be rescuers: "Thank you, but we don't want your help. We will work with our creditors, our public sector and our citizenry to solve our problems."

Greek finances are certainly in trouble. The Mediterranean nation owes nearly 100% of its annual gross domestic product, even after balancing its debt against its financial assets, according to the Organization for Economic Cooperation and Development. The average in the 16 nations that use the common euro currency, including Greece, is 58%. Greece's deficit was nearly 13% of GDP last year, more than twice the euro zone average. Similar gaps loom for years to come unless the country wins spending fights against its powerful public sector.

Greece has been able to borrow in global markets recently only because the European Central Bank--Europe's version of the Federal Reserve--has accepted the nation's bonds from investors in return for cash. But this privilege could end soon. The ECB, like the Fed, is unwinding the extraordinary measures it has taken throughout the three-year-old global financial crisis. Even with this special support, moreover, Greece's borrowing has lately become expensive relative to German government bonds, reflecting markets' unease.

Greece's euro membership appears to give it a big advantage over, say, Ukraine, which had to take an IMF bailout in 2008. France and Germany, the strongest of the euro zone nations, worry that the euro, their marquee economic project, won't hold. Unless it gets help, Greece could abandon the euro; it could then reprint its old drachmas and export goods and services in a cheap currency, spurring economic growth. If Greece even hints at faltering on its national-debt repayments, bondholders could stop lending to Portugal, Spain and other fragile euro zone members, creating the temptation for those countries to do the same.

So continental Europe, led by France and Germany, has made it clear--without quite saying so--that it won't let Greece fail. Europe likely would buy Greek bonds if nobody else will, for example, or offer guarantees to bond buyers. In doing so, the Europeans would flagrantly break their own rules: The euro zone has a "no bailout" clause.

If France and Germany won't stick to the no-rescue rules, Greece should. It should say that it will stick with the euro but that it understands that its promises to its public sector and to its creditors are impossible to reconcile--so it will restructure them.

A Greek solution, as opposed to a European one, would be good for Greeks. European "help" likely won't fix the country's finances. The empty purse is Papandreou's best tool for keeping public resolve strong in the face of crippling strikes by public workers. The Greek citizenry supports Papandreou's plan to cut public-sector pay and benefits by 4%. In polls taken last week 65% said the austerity measures were "necessary and overdue."

If Germany and France give the state another way out, though, Greece may take it. Sure, Europe is making noise about Greece having to get its fiscal house in order in return for a lifeline. But German and French leaders doubtless would be happy if world markets resume ignoring Greece's obvious problems until some undefined time in the future, as markets did for a decade. Meanwhile, Greeks would continue to suffer in an economy suffocated by a bloated public sector and too much debt.

A Greek solution would be good for Europe, too. If Greece were to say that it would keep the euro even as it moves to revamp its finances, the currency likely would fall against the dollar. Investors in European bonds would realize that the no-bailout clause really does mean no bailouts. But a weaker euro would benefit Greece, Spain and other tourism- and export-based economies—including Germany and France. Europe could sell its goods and services more cheaply to the rest of the world.

Over the years, too, a Greek solution would be good for the euro. A common currency that can bend will not break. If other indebted euro countries see from Greece's example that they can fix their finances without leaving the euro, they're more likely to stay committed to it.

Finally, a Greek solution would help the entire West, including America. It is past time for the world's investors to understand that irresponsible lending invites borrower default, even if the borrower is a big bank or a government. If the financial world continues to think it can lend without consequences, the result will be a Western world so indebted that it can't compete economically.

Over the past decade global lenders and advisers have reaped huge profits helping Greece to borrow beyond its means. The biggest winners in a European bailout of Greece would be its bondholders and other creditors, including French and German banks that hold tens of billions of dollars in Greek debt.

In America citizens remain rightly outraged that the U.S. government's 2008 bailout of insurance giant AIG protected the firm's creditors from tens of billions of dollars' worth of losses. A bailout of Greece would similarly protect Greece's enablers. A bailout would also muzzle a necessary warning from markets. After nearly two years of bailouts Western nations still have not taken steps to allow financial firms to fail in an orderly fashion without taking the world's economy down with them.

"Strong" Western nations such as France and Germany--and the United States--cannot continue to protect bondholders and other creditors at all costs from the ramifications of lending money to borrowers unable reasonably to pay it back. Nor can the government protect financial firms that use financial engineering to make such lending appear less risky than it truly is.

This "too big to fail" mentality encourages the world's creditors to abet Western debtors in a bizarre experiment: the mass competition to see which governments can raise the most debt the fastest to paper over their problems. In the U.S. no investor in his right mind would trust the states of California or New York with his money—save for the expectation of a federal bailout.

As the Western world's "too big to fail" policy delays inevitable debt restructurings at banks, nations, states, cities and industrial firms, we're all moving up toward Greek borrowing levels. The U.S. owed 35% of its GDP in 2000; now, it owes 65%. And that's not including Social Security and Medicare. Never mind that this experiment hasn't worked in Japan, which, like Greece, owes 100% of its GDP.

Creditors as well as debtors must take responsibility for bad government debt and for the public-sector profligacy that bad debt enables. Debt becomes bad when nations, states, cities and other entities have no chance of repaying it while still having a chance at decent economic growth. According to Carmen Reinhart and Kenneth Rogoff, authors of This Time is Different: Eight Centuries of Financial Folly, growth suffers when debt hits 90% of GDP.

The West cannot prosper if it locks itself in debtors' prison. Governments can show markets that they understand this truth now--or markets can teach them the hard way, later.

Nicole Gelinas is the author of After The Fall: Saving Capitalism From Wall Street – and Washington and a contributing editor of the Manhattan Institute's City Journal, from which this is adapted.

EU leaders say they have a deal to aid the country's deb woes. 

A plan to help Greece deal with its debt crisis appears to be in the works, but after days of speculation official word that a rescue plan is being discussed did little to boost stocks in New York Thursday.

On Wednesday, an up-and-down session closed slightly in the red, and morning trading showed more of the same with the major indexes opening to the downside. That came despite a decline in weekly jobless claims tallied by the Labor Department, which fell to 440,000, from 483,000 a week ago.

Hilton Worldwide has announced the signing of a franchise license agreement with AKTI HELONA S.A. to operate a Doubletree by Hilton Resort on the island of Kos in Greece.

Scheduled to open in May 2010, the Doubletree by Hilton Resort, Kos - Helona will be Hilton Worldwide’s second property in Greece and the country’s first Doubletree by Hilton, marking further growth of this upscale, full-service brand across Europe. Hilton Worldwide currently operates one hotel in Greece, the Hilton Athens in the capital’s city centre.

Welcoming today’s announcement, Patrick Fitzgibbon, Hilton Worldwide’s senior vice president, development - Europe & Africa, said: ‘Hilton Worldwide is continuing its exciting rollout of its portfolio of brands across Europe and we are delighted to announce the opening of the first Doubletree by Hilton in Greece. The country has a strong tourism infrastructure and Kos is the second most popular destination in the Dodecanese Archipelago. With the hotel market in Greece dominated by independently run hotels and domestic chains, we believe there are wonderful growth opportunities for all our brands throughout the country.’

Doubletree by Hilton Resort, Kos - Helona is on the south-eastern coast line of Kos Island. The hotel, which originally opened as an independent hotel in June 2009, will offer 238 rooms including 15 suites and three villas, two restaurants and bars, a spa and fitness area, a private beach as well as 800 square metres of meeting space, including a room able to accommodate up to 700 people.

Doubletree by Hilton is an upscale full-service brand that has seen remarkable growth since its first introduction in Europe in spring 2008. Ten properties are now open across Europe in the UK, Italy and Slovakia, with development projects confirmed in Russia and Romania.

Rob Palleschi, global head for Doubletree Hotels, commented: ‘We are thrilled to announce the opening of our first Doubletree by Hilton in Greece. Kos Island is a stunning destination attracting leisure and business guests alike and the hotel is in a superb location, offering excellent facilities. This latest announcement represents a new chapter in our European expansion and will open new opportunities for owners to invest with Hilton Worldwide and Doubletree by Hilton.’

Doubletree by Hilton is a proud member of the Hilton Worldwide portfolio of hotels with a fast-growing network that spans more than 200 locations around the world. The new hotel will introduce business guests and tourists in Greece to the brand’s longstanding tradition of distinctively designed properties that reflect the destination and surrounding area.

Some Doubletree by Hilton characteristic qualities include the warm welcome of the brand’s legendary chocolate chip cookie to every guest at check-in, the rewards of the prestigious Hilton HHonors(R) loyalty programme and a unique and caring commitment to the communities in which they operate. Doubletree by Hilton believes in a set of business values that make their hotels a desirable place for employees to work and a satisfying place for travellers to stay.

‘All of us at the LAKITIRA HOTELS Group are delighted that our brand new resort hotel in Kos - Helona - today joins Hilton Worldwide to become the first Doubletree by Hilton Resort in Greece,’ commented N.J. Andriopoulos, President of Lakitira Hotels and shareholder of AKTI HELONA, the management company for the resort. ‘With such a high standard for operations, stunning construction and distinguished design, we always wanted our hotel to be part of a major international hotel chain so we could offer our guests the best services and facilities possible. Our cooperation with Hilton Worldwide, the global leader in hospitality, will without doubt result in a significant upgrade for the island of Kos as a destination and we are proud that this upgrade is the outcome of our efforts and hard work.’

LONDON -

Parmy Olson, 01.19.10, 11:40 AM ET- Forbes.com-Global Economy

Prices of apartments in Greece fell 3.8 per cent in the first nine months of the year on an annual basis, according to the Bank of Greece data, with older properties showing a steeper price correction.

The Bank of Greece, the country’s central bank, said the price dip in apartments more than 5 years old reached 4.7 percent versus a 2.4 percent dip in the cost of acquiring a new apartment.

“This appears to reflect the relatively higher resilience of prices on newly built homes that are put up for sale by development companies,” the bank said in a statement.

The data, published for the first time, is part of the central bank’s efforts to increase the quality flow of information that measures developments on Greece’s property market.

Price fluctuations in residential housing differed across Greece.

The Bank of Greece said that apartment prices in Athens fell by 5.1 percent year-on-year in the first nine months of the year, by 6 percent in Thessaloniki and 3 percent in other large cities.

A new private healthcare system which could benefit expats has been launched by Integra Global.

The health insurance company has developed an electronic system as a key part of its new product.

The system allows customers to monitor their health records from anywhere in the world by storing their information securely online or on a private portable storage device.

This information is then made accessible to the customer's international healthcare providers.

"Many of our members have been on numerous expat assignments and hence have physicians in several different locations," said Phillip Catterton, managing director of Integra Global.

He added that the tool would enable "the management of their health records with medical providers located worldwide".

An exhibition of works of art dedicated to Eros, the ancient Greek god of love, has opened in Athens.

The ground-breaking exhibition, which is now on at the Goulandris Museum of Cycladic Art, in the heart of the Greek capital, has brought together dozens of priceless pieces from across 12 centuries.

The exhibits include 50 works of art specially loaned to the museum, including several from the Louvre in Paris and the Capitoline Museums in Rome.

Though the form of the works range significantly, with marble statues, ceramic vases and paintings all on display to visitors, all of the works are in some way linked to Eros and, as such, the museum has advised that some part of its celebrated exhibition may not be suitable for unescorted youngsters.

The 'Eros: From Hesiod's Theogony to late Antiquity' museum will be on at the Athens museum until the end of April 2010.

Athens is also home to two of Europe's most important museums, namely the National Archaeological Museum and the Byzantine and Christian Museum, with the latter widely-acknowledged as boasting one of the world's finest collections of ancient and Ottoman Greek art.

Source: Opodo

Owners of rental properties in Greece could benefit from news that Lonely Planet listed Greece as one of the top 10 countries to visit next year.

Lonely Planet has released a new guide that includes a list of the top ten countries to visit next year.

The Best in Travel 2010 book features a selection of lists covering various subjects, with the run-down of the leading countries including El Salvador, Germany, Greece, Portugal and the USA.

Suriname, Malaysia, Morocco and Nepal also featured in the list, along with the perennial favourite of New Zealand.

Other lists in the Lonely Planet Best in Travel 2010 guide include the world's leading cycling routes, the best cities, the best locations to go birdwatching and the top places to walk your dog.

11 January 2010

Investors are likely to return to overseas property market over the coming year, according to an industry expert.

Adam Samuel, director at Nubricks.com, said this is the time of year when people are potentially receiving work bonuses and looking for somewhere to invest their money.

"Those kinds of investor-focused individuals will be coming into the marketplace and obviously looking for good things to buy," Samuel said.

Samuel also said that investors looking for a good medium to long-term prospect may wish to consider buying a property in Germany where people tend to let properties rather than buying their own, meaning the rental market is consistently strong.

According to recent survey by Property-Abroad.com, some of the most searched-for destinations among property investors include the US, Spain, Canada, Italy, Turkey and Greece.

To give up work to sail around the Med is the stuff of many a retirement dream. Setting off from southern Spain, Jim and Caroline Baerselman headed east on a 40ft sailing boat and did just that for five years.

But of all the places they saw on their travels, it was the rugged south-western tip of the Peloponnese in Greece that was to capture their imaginations.

They loved this unspoilt region so much, particularly the fishing hamlet of Finicounda, that when, four years ago, life at sea lost its allure they sold their yacht and bought a large villa, with the intention of staying for ever.

Read more: http://www.dailymail.co.uk/property/article-1230234/We-sold-yacht--perfect-peace-Peloponnese.html#ixzz0aSdRiJPo
Mail OnLine- By Marjory Mcginn

The minister of justice, transparency and human rights yesterday heralded an action plan for the protection of women against physical and psychological violence, as it emerged that one in three women in Greece is a victim of such abuse.

The plan unveiled by Haris Kastanidis aims to curb the instances of such violence, which have increased in recent years, to boost the quality of state aid available to victims and provide better support for victims of sex-trafficking rings, usually immigrants. The immediate aim is to establish 13 hostels for abused women, most of these in Athens and Thessaloniki. There are also plans to set up a telephone line, with multilingual staff, for victims of abuse to call and discuss their problems.

According to the ministry’s new general secretary, Maria Stratigaki, domestic violence against women is on the increase. “In the past 17 months, 35 women were murdered by their husbands or partners while two advice centers in Athens and Piraeus reported 657 visits from women and 1,661 calls for advice.”

Environment, Energy and Climate Change Minister Tina Birbili told the press yesterday that the government has directed state-controlled Public Power Corporation (PPC) to revise its 13-billion-euro investment plan to raise its renewable energy output. ‘We expect the new management to redraft PPC’s investment plan,’ she said. ‘The new plan will reflect the ministry’s new political directions,’ she added. Birbili’s statement came a day after the government named renewable energy expert Arthouros Zervos as the new head of PPC. The government will soon unveil a draft road map for the country to produce a fifth of its energy from clean sources by 2020, Birbili said. Greece currently produces just over 3 percent of its energy from wind and solar power.

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Forbes

Best Countries for Business

#52 Greece

03.18.09, 06:00 PM EST

Greece has a capitalist economy with the public sector accounting for about 40% of GDP and with per capita GDP at least 75% of the leading euro-zone economies. Tourism provides 15% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP. The Greek economy grew by nearly 4.0% per year between 2003 and 2007, due partly to infrastructural spending related to the 2004 Athens Olympic Games, and in part to an increased availability of credit, which has sustained record levels of consumer spending. But growth dropped to 2.8% in 2008, as a result of the world financial crisis and tightening credit conditions. Greece violated the EU's Growth and Stability Pact budget deficit criteria of no more than 3% of GDP from 2001 to 2006, but finally met that criteria in 2007-08. Public debt, inflation, and unemployment are above the euro-zone average, but are falling. The Greek Government continues to grapple with cutting government spending, reducing the size of the public sector, and reforming the labor and pension systems, in the face of often vocal opposition from the country's powerful labor unions and the general public. The economy remains an important domestic political issue in Greece and, while the ruling New Democracy government has had some success in improving economic growth and reducing the budget deficit, Athens faces long-term challenges in its effort to continue its economic reforms, especially social security reform and privatization.

Greece Property To See Recovery Sooner Rather Than Later

The day after October 4

The state of the economy leaves little room for either major party to make any great changes after the October 4 elections, so we can expect neither New Democracy nor PASOK to spend as wildly as both have in the past. At the same time, neither party can be expected to introduce tough austerity measures that would cost votes in the next election – which could be very soon if there is no clear winner in the October poll or if the opposition refuses to back the government’s candidate for president in a parliamentary vote next spring.

So the next government will probably focus on issues that will not cost money and will not alienate a large number of voters. As PASOK will not be announcing its policy program until this coming Sunday (September 20) and New Democracy – as the government – has already shown what its priorities are, we can only make an educated guess that any changes in the economic sphere will be more in tone than in substance.

Prime Minister Costas Karamanlis called the snap election against the advice of most New Democracy cardres, arguing that the global economic crisis demands a fresh mandate for tough measures. He announced a freeze on wages, pensions and subsidies, but he has also tried to contain the political damage by promising to provide low-income groups with a one-off payment. PASOK, on the contrary, promises to increase wages and pensions above inflation, to raise unemployment benefits and to spur development in order to increase revenues. But the (nominally, at least) Socialist party has hedged its bets: While promising to increase spending on education and research, it says it will do so over the next four years. It won’t be forced, therefore, to do anything now that would bring the European Commission’s ire upon Greece’s head. In any case, PASOK can make promises that it knows it cannot keep because – in a time-honored tradition of Greek politics – it can blame the former government for leaving the treasury empty.

On foreign policy, the two major parties are close on the issues. Where they will probably differ is on the amount of time their leaders will devote to it. Karamanlis has appeared content to allow Foreign Minister Dora Bakoyannis to run things on her own, with minimal interest in developing ties in the region – although relations with Russia were given a boost through plans for greater cooperation in the energy sector and Karamanlis initially enjoyed a warm relationship with Turkish Prime Minister Recep Tayyip Erdogan. George Papandreou’s finest hour during many years of Cabinet membership was as Greece’s foreign minister. Having lived and studied abroad, with his pedigree as the son and grandson of prime ministers, and currently president of the Socialist International, he is in his element among foreign officials. If PASOK wins, we can expect Greece to push for a much greater presence on the regional and international stage. This might even help ease relations with Turkey and the Former Yugoslav Republic of Macedonia, though PASOK’s nationalist wing may wish otherwise.

Domestically, perhaps the most important issue that PASOK can take on is the need to overhaul Greece’s treatment of its immigrants. New Democracy took many steps but none radical enough to solve the immigrants’ problems. Many immigrants have been here since 1990, many have children who may have been born here and have graduated from Greek schools and still do not enjoy the benefits of long-term residence. Papandreou has shown a keen interest in migrant policy in the past and can be expected to concentrate on a problem that – when solved – is capable of enriching Greece greatly. Another major development would be for the next government to take on the powerful web of business and media interests, which dominate the country's politics and economy. Karamanlis tried and failed. If Papandreou is elected, this battle will make or break him, too.

Koroni was founded as Korone by Epimelidies in 365 BC who, in turn, came from Koronea in Boeotia.  He built it upon a still more ancient town called Asine.

The ancient town is to the southwest of the Vasilitsi road (the southernmost village of Cape Akritas).

In antinquity, Korone was independent and minted its own coins.

It joined the Achean league in 184 BC but was caught up in the struggle between the Spartans and native Messinians and was attacked many times.

Its inhabitants moved the town to its present location during the middle ages and it became an important trading port.

The Franks captured it in 1205 and the Venetians captured it a year later - using it as a staging point and supply base for their fleet.  Koroni was well known for its high quality olive oil, agricultural products, dyes and metalwork.

Perhaps its most significant industry was the manufacture of seige works and machinery which were sought after all over Europe during the 14th and 15th centuries.  During that time, Koroni and Methoni together paid a tribute to Venice of 2,000 ounces of gold from their profits.  It was captured by the Turks in 1500 and held until 1828.

The venetians recaptured it twice during this period.  At one time, Koroni was considered a mighty city for its size.  The nearby beach of Zanga is very pleasant and the small museum contains  finds from the surrounding area.

Ancient Ithomi

Ancient Messinia or Ithomi was the most significant city of the time within the area.  The acropolis was atop Mt. Ithomi and was strongly fortified.  It needed to be because the Spartans had their sights set on it.  After many years, they finally forced its capitulation but in 464 BC there was a rebellion and the populace walled themselves up in the ancient city and held out for ten years!!  The Spartans were so desperate to take it back that they asked the help of the Athenians who agreed.

The Hellenic Republic (Greece) has always been one of the most appealing places to live.  From the most ancient times, people settled there for its wonderful weather, superb sea and agricultural wonders.

Owning some Greek real estate can give one a sense of having bought a piece of history, give the opportunity to make steady and consistent capital gains and provide a great lifestyle at affordable prices.

There is really nowhere else like it on earth.  As the Greeks like to point out, the Gods could have settled anywhere, but they picked Greece.

The real estate market in Greece falls into two basic categories:  commercial and residential.  However, in both cases, there is the well-developed areas of Athens and Salonika, and then the touristic areas of the Greek islands and coasts. 

In all cases, the market has been performing steadily upwards since the end of WW2.

The Greek real estate market is as popular with non-Greeks as it is with the Greeks themselves.

Florida of the EU

As in the Florida phenomenon in the United States, Greece is becoming an increasingly popular place for aging Europeans and others to retire.

Health care is as good as anywhere else in the EU, the local population is typically multilingual and the weather provides a summer of eight to nine months a year.

For sheer beauty and cleanliness, the Greek seas are unbeatable in Europe. 

Property prices rise at a moderate but consistent rate.

The Commercial Market

By far, the most developed real estate opportunities in Greece are the touristic sites in the commercial market.

Many hotels in Greece are now owned by non-Greeks, in all areas; the cities and the islands/coasts.  Typical sale and purchase margins are all double digit and can easily exceed 35 to 40 percent.

Greek and Foreign banks in Greece are now loaning substantial funds to finance commercial purchases.  Tourism in Greece has been on the rise ever since the 2004 Olympics.

The Residential Market

The residential market in Greece is certainly dominated by the Greeks themselves; but only in the cities.

There are whole areas (Mani, for example, in the Peloponnese) that have become German and Swedish colonies.  Areas near Salonika (Porto Carras) are also fully developed with villas of all sizes and sorts.  Typically, the buyers do not sell once the purchase is made, as it appears to be retirement settlements.

There are any number of reputable real estate brokerages in Greece ready to assist the potential buyer.

 However, there is no substitute for actually travelling to Greece for an extended vacation and learning directly about the climate, geographical situation, law and regulation, Greek foods and customs and financial banking assistance.

Getting Around in Greece to Investigate Real Estate Opportunities

It is very easy to rent a car to drive around Greece.  There are many ferry boats that can transport you to the islands; and the road system, even to remote mountain villages is well developed.

The Greeks are a hospitable people and take great pride in entertaining visitors.  While investigating the real estate opportunities, you can also get to know the Greeks themselves and decide (like so many have) that this is a great place to live and later retire.

Article Source:  Europe Real Estate / Author, Kelly Price

By Air

Although Athens remains the prime destination for cheap fares, there are also direct flights from Britain to Thessaloniki, Prkveza and Kavila on the Greek mainland, Kalamita on the Peloponnese and to the islands of Crete, Hios, Kefalonia, Kos, Lksvos, Limnos, Mikonos, Phros, Rhodes, Simos, Santorini, Skiathos and Zakinthos.  With any flight to Athens, you can buy a domestic connecting flight via the national carrier, Olympic, to one of a dozen or so additional Greek mainland and island airports.

Athens Eleftherios Venizelos International Airport

The Athens International Airport is situated 20 miles (33 km) southeast of the city centre.  The easiest and quickest way to reach the city centre from the airport is on board Athens' new Metro.  Metro Line 3 connects the airport with Syntagma Square and Monastiraki.  The airport is also served by six public bus routes, which connect to destinations in the greater area of Athens and PIraeus, with buses running frequently day and night.  Athens International is connected to Athens Central Railway Station (Larissis Station) by the Suburban Rail line.  There are also plenty of taxis to be hired at the ranks in front of the airport terminals, fares charged on a per km basis.   Car rental:  Avis, Hertz, National, Budget, Europcar and Sixt are all represented at the airport.  The airport is well supplied with cafes, restaurants, bars and shops, including duty free.  There are branches of two banks providing full services at the airport, and numerous ATMs and currency exhange bureax are also available.  Non-EU nationals can get VAT refunded at the EUROCHANGE currency exchange unit located at the Departures Level.  Several travel agencies operate from the airport, and there is a Greek National Tourist Board information desk.  Conference utilities are available and there is a business centre with Internet access, photocopier machines, faxes and secretarial services.  A meeting room is also available.  Disabled facilities are good; those with special needs should contact their airline in advance.  Short-term parking (up to four hours) is available right outside the arrivals level of the main terminal. Long-term car parks are on the other side of the airport access road with free shuttle buses.  Passengers can also opt for an executive valet parking services whose personnel receive and deliver vehicles at the main terminal's departure level. 

For more information, visit Athens Airport website www.aia.gr

By Road

If you are coming from the UK, you can use the Eurotunnel or take a ferry or hovercraft to cross the English Channel and reach Greece by road from there.  North France to Athens is over 3200 km.

Travelling by Car

The best route from London to Athens is via Calais, Dijon, Chamonix, Geneva and Milan to Brindisi, then across the Adriatic sea to Igoumenitsa on the Greek mainland and onwards to Athens, a drive of some 2,500 kilometres.  However, the increasing cost of the French and Italian road tolls has made this route more expensive.

With the introduction of a new ferry service in 1995, the most reasonable route missing out on most of the road tolls is now via Calais, Dunlurk, Lille, Mons, Namur, Luxembourg, Stasbourg, Basel, Luzern, Lugano, Como, Milan, Bologna and to the northern Italian port of Ancona, where a fast ferry service will get you to Patras on the Greek Peloponnese in only 16 hours.  From Patras, Athens is little over 160 kilometres away.  The total driving route at just over 1,600 kilometres cuts down the traditional journey by some 800 kilometres.

Travelling by Bus

The best option is to travel by Eurolines.  These coaches are operated by National Express with a consortium of the European state bus companies.  The route is usually London, Dover, Paris, Rirnini, Ancona, Corfu, Igoumenitsa, Patras and Athens.  You will probably need to change coaches in Italy and transfer to a Greek or Italian carrier.  Most journeys leave London at about 9:00 am on day one and reach Athens two days later about midday.  Stops of about 20 minutes are made every five or six hours with the odd longer break for roadside cafe meals.

By Rail

You can now travel through the Eurotunnel, but traditionally the route with British Rail is London to Folkestone then Hoverspeed to Boulogne and on to Paris, which takes just under 20 hours.  At Paris, you need to catch an 11-hour passage to Bologna in Northern Italy where you have a short wait before catching the onward train to the ferry port at Brindisi, a journey of some ten hours  The evening ferry docks at Patras on the Greek Peloponnese some 17.5 hours later, leaving you to catch a bus to Athens which rambles along the Corinth canal, taking about four hours, stopping en route at Corinth for the mandatory 20-minute toilet and souvlaki (pork kebab) stop.

If you have the time, try to catch the single track Peloponnese narrow gauge train which winds its way from Athens to Kalamata, via either Phtras or Tripoli - a truly memorable journey with spectacular scenery provided it's not too hot.

By Sea

It is possible to ferry cars to one of the major ports of entry in Greece in order to enter overland.  Routes from the UK are via France and Italy.  Links from Italy include Venice, Brindisi and Ancona.  Greek ports are used by a number of cruise lines including Celebrity Cruises, Costa Cruises, Crystal Cruises, Festival Cruises, Holland America Line, Princess Cruises, Silversea and Swan Hellenic.

 Buying Property

Greece is dotted with some of the most extraordinary scenery and tourists from around the world flock to Greece each and every year.

An ever growing number of foreign nationals have turned to purchasing vacation or holiday properties in different locations around Greece either as a holiday home for their own personal purposes or as an investment property.

On many levels, buying property in Greece, particularly if you are a foreign national, can be a rather complicated and sometimes confusing process.  However, by understanding the process up front, and by understanding the various requirements and regulations that apply to foreign nationals seeking to buy real estate in Greece, a foreign citizen can successfully acquire property in Greece.

As a general rule, a foreign national can purchase real estate in most locations in Greece.  However, a foreign national who is not from a European Union nation must obtain the prior approval from the local prefecture in certain areas in Greece:  some regions of nothern Greece, Rhodes and Crete.  Many real estate agents offer help and expertise to foreign nationals in obtaining the necessary permission in these areas.  Obtaining this permission from a local prefecture generally does not take a great deal of time and usually is granted without significant fuss.

Before anyone, either Greek citizen, the EU or another foreign national, can purchase real estate in Greece, that person must first obtain a tax role number, known in Greece as an AFM.  This number is easy to get and can be obtained at any tax office in the country.  The tax number can be obtained from these offices on the spot.  Citizens of Greece or another CU nation need only show their government issued ID card.  Citizens of other countries must show a passport to obtain the AFM.

Greek authorities are very concerned about where a foreign national is obtaining money to purchase property in Greece.  As a consequence, a person from another country interested in buying property in Greece will need to obtain what is known as a "pink slip" for wire transfers of money from abroad.  The purchaser has to be able to demonstrate where the money is coming from and if he or she cannot, Grecian governmental authorities will consider any money wired into the country as income and will tax it accordingly.

In addition, money to purchase real estate in Greece must come directly from a Greek bank and bank account.  Therefore, before a person can actually make a purchase of real property in Greece, he or she will need to open a bank account.  Provided that a person has proper documentation, and provided that a person has the pink slip to demonstrate the origin of the money involved, it is not difficult to open a bank account in Greece.

A public notary, who is an independent official, oversees the real estate purchase process.  Once an offer is made on the property, a preliminary contract is drafted.  A deposit of up to about 10 percent is placed on the property at the time this agreement is executed.  The deposit is non-refundable unless the seller somehow disrupts or ends the sales process or unless clear title to the real estate cannot be had in the time allotted under the preliminary contract.  After the buyer obtains his or her financing, and the seller satisfies his or her own obligations under the preliminary agreement, a final contract is signed between the parties.

With the execution of the final contract, the ownership of the property will be conveyed legally to the buyer.  The final contract is signed before the public notary.  In addition, according to Greek law, the real estate agent or agents who have been involved in effecting the sale must be present for the signing of the final contract.

Business Climate in Greece has improved, Express online edition informed.  The data noted it has increased in level to 59.2 points compared to 57.2 in July.  Contribution to the industry, services and consumption has been positive.  However, tendency in retail sale and construction has been negative.

Business climate index for Euro zone has reached its highest level as of October 2008 - 80.6 points compared to 76 points in July.

Jet2.com is to open a new base at East Midlands Airport (EMA).  The low-cost carrier will offer flights to seven popular holiday destinations from EMA from May 2010.

There will be flights to Tenerife and Lanzarote, the popular Canary Islands, Corfu and Dalaman, the popular resort on the south-western coast of Turkey.

Jet2 will also serve Heraklion (Greece), Paphos, on the south-west coast of Cyprus, and Sharm El Sheikh in Egypt.

Flights are on sale now, via Jet2.com's website (www.jet2.com), and cost from £59.99 one-way including taxes.  Book now for travel next summer.

Ian Doubtfire, Managing Director of Jet2.com, told the Press Association, "We see the region as having huge growth potential for our leisure business and the exceptional transport links to the airport allow us to extend our catchment area further into Derby, Leicester, Nottingham, Sheffield and surrounding areas."

Penny Coates, the airport's Managing Director, said, "We have been talking to Jet2 for some time about a base here.

"They have got some great destinations and are a good brand.

"This news is a positive indicator for the future and puts East Midlands Airport in a strong position as we continue to extend and develop our route network."

Greece is proving popular with retiring Brits who are looking to transfer money to overseas properties, according to an industry expert.

The Greek National Tourism Organisation (GNTO) recently stated that the country was seeing an increasing number of UK emigrants settling in the region.

Sofia Panayiotaki, director of the GNTO's UK and Ireland office, explained that the warm climate and affordability of Greece are drawing Brits who wish to make international payments to mortgages.

In addition, the organisation recently launched a promotion that highlights the low cost of living offered by the country, depsite the strengthening euro.

Ms. Panayiotaki said, "There is a trend of people buying houses in Greece and they buy property for their retirement too.  Britons do decide to come to retire in Greece."

"Greece is not an expensive country and this message seems to have worked."

In other news, First Choice and Thomson recently revealed they have added destinations to their mid-haul holiday options to meet demand from Brits.

Greece has been recommeneded as one of the safest places in Europe for property investment.  Overseas property specialists Azure Overseas have highlighted the country's stability and prominence in international history as as reason to predict long-term property price growth in the country.

Azure director, Frank Crowley, said, "Between the Greek gods, Greek Mythology, the Parthenon and the Acropolis, Greek history is among the most prominent and revered in the world.  Yet property is comparatviely cheap on a like-for-like basis to other places in Europe, comparing a property that would cost £200,000 - £220,000 in Spain during high times, was being sold in Greece for £150,000 - £180,000.

"The important landmarks will prevent over-development in those regions, and the country's importance in Europe will ensure property prices grow over the long term.  Also, tourism to Greece has grown massively in the last few years, and will continue to do so.  This means that rental yields in the country are strong and growing."

Les Calvert, Director of Property Abroad.com concurred with the statements and added, "We have seen activity increasing, more people searching for property in Greece.  The international downturn has led to bargains, and there are also a few repossessed properties knocking about.  The Northern Europeans are in there trying to get their place in the sun at a knock down price."

Source:  Property-Abroad.com

Ninety thousand people visited the New Acropolis museum in Athens in the first seven days since its official inauguration on June 20, according to Culture Minister Antonis Samaras.

The Minister told a press conference that the cost of the inauguration celebrations did not go over the EUR 3 million budget.  Some 440 journalists representing 167 media bodies were present at the ceremony.

Over 11,000 tickets were sold over the internet in the first five days, while the museum's new website registered more than 260,000 hits.  The new Museum will be open all year round, from 8 am to 8 pm said the Minister.

Source:  ANSAmed

Aegean Airlines has announced that it will launch flights from London Heathrow to Athens this year.

The carrier will offer two daily non-stop flights to the Greek capital from Heathrow Airport from October 25th, with departures from London at 12:45 and 17:20.

Both business and leisure travelers are expected to make use of the new service, which has been scheduled to enable good connections with Aegean's domestic network in Greece, which includes flights to Rhodes, Kefalonia and Mikonos.

The flights to Athens will be operated by a brand new Airbus A321 aircraft in a dual-class configuration, offering a full meal, an in-flight entertainment system and a movie for all passengers, as well as comfortable seats and an espresso or cappuccino for business class travelers.

Aegean Airlines is currently being integrated into the Star Alliance network, a process that is expected to be complete by June 2010.

The weakness of the European economy is helping to restore confidence in the sterling's rise against the euro.  The pound reached a year-long high of €1.18 but has yet to reach the benchmark €1.20 that many currency brokers are suggesting will be the tipping point for UK investors to return en masse to the continent.

Recent reports suggest that Europe's financial institutions have a long way to go before recovery.  The financial analysis firm Standard & Poor's has given a negative assessment of more than half of the continent's biggest banks, while the European Central Bank's latest Financial Stability Review stated that eurozone banks might still have to write down $283 billion worth of loans by the end of 2010.

 "Things are getting progressively worse in Europe and the news is continually bad," said Mark O'Sullivan, Director of Dealing at Currencies Direct.  "The eurozone is made up of 16 different economies, each with their own problems.  It's going to be a long hard slog for the Europeans.  But if you're a cash buyer looking at Europe, you're going to do well."

 David Lamb, Head of Treasury Services at No 1 Currency, said, "Over the last few weeks, it's definitely been the view that investors are seeing value in the UK currency.  But we're still waiting for the €1.20 trigger point - we've got clients waiting for that figure before they get into property."

Dollar Rebound

The single currency is making headway against the dollar, however, having rebounded to $1.38 after falling to $1.23 from a high of around $1.60 last year.  "It's done almost a complete U-turn," said Stephen Hughes, Director of Foreign Currency Direct.  "This has been a really poor time for the US, mainly due to the high unemployment rates."

" American investors have shown some interest in Europe but are still being very cagey," said Lamb.  "It will take more stability and more lending before we see more dollars coming into the market."

Many Britons who let out their European holiday homes could be entitled to a tax rebate under measures announed in April's budget.  From next year, however, all tax breaks on second homes in the UK and abroad will be abolished, removing any tax barriers that might encourage Brits to invest in property at home rather than overseas."

The scheme means that people who let out second homes in the EU but still make a loss, or who have sold the hosue at a profit, may be able to claim tax repayments for as far back as 2003.

"In the short term this will provide a more favourable treatment for some of those who let out their foreign properties," said Michael Axelrod, Commercial Director of International Mortgage Broker Conti.

Mark Tuckwell, Head of the Midlands office for Target Chartered Accountants, said, "With the tax incentive removed, people might think about investing in holiday let property abroad instead of just in the UK because there will be a more level playing field.

"These changes may make it easier and more attractive for UK nationals to invest in overseas property."

A Greek island development is targeting the fractional mass market with one-twelfth fractions of resort apartments for less than £20,000.

UK-based developer Barrasford and Bird Worldwide is planning to build the Halcyon Hills Luxury Resort and Spa on the island of Samos.  Fractions are being offered in one-bed apartments for £19,000, and in one, two and three-bed villas for between £28,000 and £70,000.

"We wanted to open up the fractional properties to as wide a market as possible and make luxury property ownership more accessible," Managing Director Robin Barrasford told OPP.  "Owners can, of course, purchase more than one fraction if they wish."

Jerry Cobb, Chief Executive of the Fractional Ownership Consultancy, said the fractional size was well suited to the development.  "These are slightly smaller fractions than is often the case and that works perfectly well for the Greek market, which is not as easily accessible for British buyers as places like Spain and France," he told OPP.

"My view is that we're at the beginning of the shared ownership industry and there are different products out there for the whole of the market.  Sharing is the future whether at the top end or for the mass market."

Wider Spread of Buyers

Barrasfored and Bird are hoping to reach a number of nationalities with the scheme.  "We have clients from as far afield as China and New York, so it's not just UK buyers," said Barrasford.  "Fractional ownership has long been a fond favourite of the American market.

Greece and Canada sign a taxation deal that they say will prevent the same income from being taxed twice.

Greek Foreign Minister, Dora Bakoyannis, and her Canadian counterpart, Lawrence Cannon, signed a bilateral double-taxation agreement in Athens on June 29, 2009.

"The convention between Greece and Canada for 'the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital' is aimed at reducing tax barriers to trade and investment," they said.  It will ensure Canadian and Greek taxpayers who invest or do business in Greece or Canada obtain relief from double taxation.

 Double taxation is the imposition of two or more taxes on the same income (in the case of income taxes) or assets (in the case of capital taxes).

According to a Greek foreign ministry announcement, the agreement settles the taxation of income gained through activities in Canada by all residents in Greece and vice versa.

"The strong bonds between our two countries are strengthened by the sizeable and particularly active Greek community of Canada, constantly developing within the framework of their host country's open and democratic society and contributing to its prosperity," said Bakoyannis.  "And we just signed a Greek-Canadian agreement on the avoidance of double taxation.  The signing of this agreement opens up new horizons for our bilateral economic relations and removes various tax barriers, creating favourable conditions for Greek companies to do business in Canada and for Canadian ones to operate in Greece."

 "This agreement will work as an incentive towards further improving bilateral economic and trade relations and will help create a level playing field for investors between Greece and Canada," Bakoyannis added.

According to Cannon, the agreement, which must still be ratified by each country, will facilitate a greater economic presence in Greece through increaased trade and investment opportunites.  He said the signing of the double-tax treaty will benefit both the Canadian and Greek economies.

Lifing Barriers

"Canada is honoured to sign this convention with Greece and will work diligently to ensure that it is implemented and ratified as soon as possible," Cannon said.  "The current global and financial downturn calls for the lifting of barriers on trade and investment.  Our government believes that a competitive business tax system is essential to encourage new investment, growth and job creation in Canada."

Renata Wielgosz, the Canadian ambassador to Greece, also stressed the importance of the convention.  "We're very happy that this agreement was signed and that there's a commitment to ratify it before the end of the year," she told the Athens News. 

"It's a very useful mechanism to enhance business relations.  It prevents businesses from being taxed doubly, taking away an impediment to doing business.  At a time when the global economy is in difficulty and where trade is affected, it is important that countries work together," said Wielgosz.

Dimitris Soudas, spokesman for the Canadian Prime Minister, told the Athens News last week that the agreement is "something that previous governments have been working on for several years."

 According to Theodoros Aslanidis, President of the Hellenic Canadian Association, negotiations began nearly 20 years ago.

"The agreement is very positive because people will no longer be taxed twice on their world income," Aslanidis said.

Greece is already a signatory to double-tax treaties with dozens of other countries, including the United States, Albania, China and South Africa.